Local Pensions Partnership Investment Ltd Sells 14,588 Shares of Costco Wholesale Corporation $COST

Key Points

• Local Pensions Partnership Investment Ltd. reduced its Costco stake by 9.8%, selling 14,588 shares and retaining 133,912 shares valued at approximately $125.3 million. Costco remains the fund’s 18th-largest holding and represents about 2.6% of its portfolio.
• Costco’s latest quarterly results showed revenue above expectations but EPS slightly below consensus ($4.93 versus $4.94), while shares traded near $961 and carried a high P/E ratio of 48.36.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,059.53. However, elevated valuation remains a risk, despite membership monetization efforts and potential growth from planned Medicare Advantage offerings.

Local Pensions Partnership Investment Ltd lessened its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 9.8% during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 133,912 shares of the retailer's stock after selling 14,588 shares during the period. Costco Wholesale makes up approximately 2.6% of Local Pensions Partnership Investment Ltd's portfolio, making the stock its 18th biggest holding. Local Pensions Partnership Investment Ltd's holdings in Costco Wholesale were worth $125,255,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in Costco Wholesale during the fourth quarter worth $27,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the 4th quarter worth $28,000. Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the 4th quarter worth $31,000. Finally, Joseph Group Capital Management purchased a new position in shares of Costco Wholesale in the 4th quarter worth about $33,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco plans to offer co-branded Medicare Advantage plans with nonprofit insurer SCAN Group, initially in two states pending regulatory approval. The offerings may eventually include pharmacy, vision, hearing and over-the-counter benefits, potentially increasing member engagement and monetization. Costco launching Medicare Advantage plans with SCAN Group
• Positive Sentiment: Analysts and market commentary continue to highlight Costco’s Executive membership growth, digital sales conversion and rising fee income as evidence that the company is extracting more value from its membership base. Costco also retains broadly favorable analyst coverage, with a consensus view around “Moderate Buy.” Can Costco Stock Reach New Highs in Member Monetization?
• Neutral Sentiment: Costco brought back a popular Kirkland product discontinued two years ago. The move may support customer goodwill and traffic, but it is unlikely to materially affect earnings or valuation. Costco discontinued this Kirkland favorite 2 years ago. Now it's back
• Negative Sentiment: Despite a 121% five-year total return, Costco’s valuation remains a concern. Its elevated earnings multiple leaves less room for disappointment, particularly after the latest quarterly EPS slightly missed estimates, even though revenue exceeded expectations. Costco Stock Looks Fully Priced Despite 121% Returns And Earnings Questions

Costco Wholesale Trading Up 0.8%

Shares of COST opened at $961.35 on Wednesday. The business has a 50-day moving average of $949.20 and a 200 day moving average of $981.20. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm has a market cap of $426.34 billion, a P/E ratio of 48.36, a price-to-earnings-growth ratio of 4.57 and a beta of 0.87. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter in the prior year, the firm posted $4.28 earnings per share. As a group, research analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

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

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction that occurred 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 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 sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

COST has been the subject of several research reports. The Goldman Sachs Group increased their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. UBS Group lifted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research report on Wednesday, May 20th. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Oppenheimer increased their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research report on Tuesday, May 19th. Finally, Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

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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