Live Oak Investment Partners Makes New $1.71 Million Investment in Costco Wholesale Corporation $COST

Key Points

• Live Oak Investment Partners acquired 1,832 Costco shares worth approximately $1.71 million in the second quarter, making Costco about 0.9% of its portfolio. Institutional investors collectively own 68.48% of the stock.
• Analyst sentiment remains favorable, with 22 Buy ratings, 11 Holds and one Sell; the average price target is $1,059.53 versus Costco’s recent price of $943.89.
• Costco’s strong business model and international expansion support its outlook, but its elevated 47.48 price-to-earnings ratio presents valuation risk. A director also sold 885 shares, while the company maintains a quarterly dividend of $1.47, yielding about 0.6%.

Live Oak Investment Partners acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 1,832 shares of the retailer's stock, valued at approximately $1,714,000. Costco Wholesale comprises approximately 0.9% of Live Oak Investment Partners' investment portfolio, making the stock its 28th largest position.

Several other large investors also recently modified their holdings of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale in the 4th quarter valued at about $27,000. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale in the 4th quarter valued at about $28,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale during the fourth quarter worth approximately $28,000. Manning & Napier Advisors LLC lifted its position in Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock worth $34,000 after acquiring an additional 30 shares during the last quarter. Finally, Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $31,000. 68.48% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently commented on COST shares. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $1,120.00 target price on shares of Costco Wholesale in a research report on Thursday, August 6th. Mizuho set a $1,100.00 price target on Costco Wholesale in a research note on Monday, June 1st. TD Cowen reaffirmed a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Sanford C. Bernstein increased their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Finally, UBS Group lifted their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and an average price target of $1,059.53.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco’s international business is becoming a more important growth engine. Solid comparable sales, expansion opportunities in Asia and Europe, and additional warehouse “white space” could support longer-term revenue growth and diversify the company beyond the mature U.S. market. Can International Markets Become Costco’s Biggest Driver?
• Positive Sentiment: A large new Southern California warehouse is nearing completion and has an opening date, adding local capacity and potentially attracting new members. The near-term financial effect is likely modest, but the opening reinforces Costco’s ongoing store-expansion strategy. Costco’s New California Location Nears Completion
• Positive Sentiment: A discussion of the late investor Charlie Munger’s concentrated ownership of Costco highlights the company’s longstanding reputation for a durable business model, customer loyalty and high-quality management. However, the commentary is historical rather than a new fundamental catalyst. Charlie Munger’s Costco Investment
• Neutral Sentiment: Routine coverage of Costco’s Labor Day hours and fact-checking of shopping rumors has little direct relevance to earnings or the stock.
• Neutral Sentiment: Walmart’s launch of a new rotisserie-chicken offering increases competition in a popular Costco category, but the article focuses primarily on Walmart and does not indicate a material change to Costco’s outlook. Walmart Challenges Costco With Rotisserie Chicken
• Negative Sentiment: Several analyses argue that Costco’s valuation is the main risk. Despite strong operations, a price near 46–48 times earnings could limit future returns and make the stock vulnerable if growth slows or results merely meet expectations. Is Costco Stock an Obvious Buy Right Now?
• Negative Sentiment: Target is presented as the more attractive discount-retail investment because of improving momentum and a substantially lower valuation, potentially diverting investor interest from COST. Costco vs. Target

Insiders Place Their Bets

In other news, Director Kenneth D. 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 completion of the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is owned by corporate insiders.

Costco Wholesale Stock Down 0.2%

NASDAQ COST opened at $943.89 on Tuesday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The company has a market cap of $418.60 billion, a price-to-earnings ratio of 47.48, a PEG ratio of 4.50 and a beta of 0.87. The company has a 50 day moving average of $945.65 and a 200-day moving average of $979.60. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's payout ratio is currently 29.58%.

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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