L2 Asset Management LLC Purchases New Holdings in Costco Wholesale Corporation $COST

Key Points

• L2 Asset Management acquired 2,538 Costco shares in the second quarter, valued at approximately $2.37 million. Institutional investors collectively own 68.48% of the company.
• Analyst sentiment remains positive overall, with 21 Buy, 12 Hold, and 1 Sell rating, producing a consensus “Moderate Buy” rating and an average price target of $1,056.90.
• Costco shares opened at $915.74, while valuation remains a concern with a P/E ratio of 46.06; the company also pays a quarterly dividend of $1.47 per share, yielding about 0.6%.

L2 Asset Management LLC acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 2,538 shares of the retailer's stock, valued at approximately $2,374,000.

Other large investors have also recently made changes to their positions in the company. World Investment Advisors raised its holdings in shares of Costco Wholesale by 8.4% during the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after buying an additional 1,560 shares in the last quarter. Sarasin & Partners LLP lifted its holdings in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after buying an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD bought a new stake in Costco Wholesale in the fourth quarter valued at $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust purchased a new position in shares of Costco Wholesale during the fourth quarter valued at about $5,813,000. Finally, Hyperion Asset Management Ltd boosted its position in shares of Costco Wholesale by 9.0% during the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock valued at $64,325,000 after purchasing an additional 5,656 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

COST has been the subject of a number of analyst reports. UBS Group raised their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research note on Wednesday, May 20th. DA Davidson reissued a "neutral" rating and set a $1,000.00 price target on shares of Costco Wholesale in a report on Thursday. The Goldman Sachs Group lifted their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $1,091.00 target price on shares of Costco Wholesale in a research report on Friday. Finally, Roth Capital upped their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. Twenty-one analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,056.90.

Costco Wholesale News Summary

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco's August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Stock Performance

Shares of NASDAQ COST opened at $915.74 on Friday. The company has a market cap of $406.11 billion, a P/E ratio of 46.06, a P/E/G ratio of 3.84 and a beta of 0.86. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The firm's fifty day moving average is $943.58 and its two-hundred day moving average is $977.75.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 29.58%.

Costco Wholesale Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

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