Legal & General Group Plc Acquires Shares of 2,525,135 Costco Wholesale Corporation $COST

Key Points

• Legal & General Group acquired 2.53 million Costco shares during the second quarter, worth approximately $2.36 billion and representing about 0.57% of the company. Institutional investors collectively own 68.48% of Costco.
• Costco continues to show strong operating momentum, with August net sales up 9.9% year over year and digitally enabled sales rising 17.9%. Analysts maintain a broadly positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $1,056.90.
• Valuation remains a key concern: Costco trades at roughly 46 times earnings, while regulatory scrutiny over beef pricing and mixed analyst targets could weigh on investor sentiment if growth slows.

Legal & General Group Plc acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 2,525,135 shares of the retailer's stock, valued at approximately $2,362,188,000. Legal & General Group Plc owned about 0.57% of Costco Wholesale at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Diamant Asset Management Inc. boosted its holdings in Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after purchasing an additional 6,720,130 shares during the last quarter. Norges Bank acquired a new position in shares of Costco Wholesale in the 4th quarter valued at about $5,195,415,000. Corient Private Wealth LLC lifted its holdings in shares of Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after buying an additional 5,472,968 shares during the period. Ascentis Wealth Management LLC boosted its stake in shares of Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer's stock worth $2,549,616,000 after buying an additional 2,497,652 shares during the last quarter. Finally, Cardano Risk Management B.V. boosted its stake in shares of Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock worth $1,539,346,000 after buying an additional 1,607,833 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Trending Headlines about Costco Wholesale

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

Costco Wholesale Price Performance

COST stock opened at $915.74 on Friday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a market cap of $406.11 billion, a price-to-earnings ratio of 46.06, a price-to-earnings-growth ratio of 3.84 and a beta of 0.86. The business has a fifty day moving average of $943.58 and a two-hundred day moving average of $977.75.

Costco Wholesale Dividend Announcement

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

Analyst Upgrades and Downgrades

COST has been the subject of several recent research reports. Royal Bank Of Canada initiated coverage on Costco Wholesale in a research report on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 price target for the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $1,091.00 target price on shares of Costco Wholesale in a research report on Friday. Bank of America boosted their price target on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Truist Financial boosted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Finally, Sanford C. Bernstein set a $1,144.00 target price on shares of Costco Wholesale in a research report on Friday. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $1,056.90.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the company's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This 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 at the SEC website. 0.10% of the stock is currently owned by insiders.

About Costco Wholesale

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.

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