New Republic Capital LLC Boosts Stock Position in Costco Wholesale Corporation $COST

Key Points

• New Republic Capital increased its Costco stake by 308.1% in the second quarter, bringing its holdings to 3,273 shares valued at approximately $3.06 million. Institutional investors collectively own 68.48% of the company.
• Costco reported quarterly revenue of $70.53 billion, exceeding expectations, though earnings per share of $4.93 slightly missed consensus. The company also paid a quarterly dividend of $1.47 per share, equivalent to a 0.6% annualized yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $1,059.53 price target, but Costco’s elevated valuation—about 48 times earnings—leaves limited room for disappointing growth or execution.

New Republic Capital LLC boosted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 308.1% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,273 shares of the retailer's stock after buying an additional 2,471 shares during the period. Costco Wholesale makes up about 0.7% of New Republic Capital LLC's investment portfolio, making the stock its 24th largest holding. New Republic Capital LLC's holdings in Costco Wholesale were worth $3,062,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also added to or reduced their stakes in the company. World Investment Advisors increased its stake in 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 purchasing an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas lifted its stake in shares of Costco Wholesale by 24.5% in the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock worth $121,098,000 after buying an additional 27,625 shares in the last quarter. Sarasin & Partners LLP lifted its stake in shares of Costco Wholesale by 6.9% in the second 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 in the last quarter. Perryman Financial Advisory Inc. AD purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $9,300,000. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $5,813,000. Hedge funds and other institutional investors 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: New Medicare Advantage offering could expand Costco’s membership value proposition. Costco is partnering with nonprofit SCAN Health Plan to offer co-branded Medicare Advantage and supplemental plans, initially in two states pending regulatory approval. The broader rollout could include pharmacy, vision, hearing and over-the-counter benefits, potentially strengthening member retention and creating an additional revenue stream. Costco’s Next Big Bulk Item: Medicare Advantage
• Positive Sentiment: Growing cash reserves may support another special dividend. Commentary suggests Costco’s accumulating cash could lead to a substantial shareholder payout this fall. While no dividend has been announced, the possibility may provide support for the stock and reinforce Costco’s shareholder-return appeal. Costco's Cash Pile Keeps Building
• Neutral Sentiment: Costco’s merchandising strategy continues to drive member engagement. The company’s practice of rotating or discontinuing popular products can frustrate shoppers, but limited availability and surprise product returns may encourage more frequent warehouse visits and support the treasure-hunt shopping experience. Costco keeps discontinuing popular products
• Negative Sentiment: Valuation leaves limited room for execution missteps. COST trades at roughly 48 times earnings, with a PEG ratio above 4, and analysts have questioned whether its strong multiyear performance is already reflected in the share price. The company’s latest quarterly EPS slightly missed consensus, although revenue exceeded expectations, adding to investor focus on earnings growth. Costco Stock Looks Fully Priced

Wall Street Analysts Forecast Growth

COST has been the subject of several analyst reports. Truist Financial raised their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. BTIG Research reaffirmed a "buy" rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a research report on Friday, May 29th. Roth Capital increased their target price on Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research note on Friday, May 29th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, Royal Bank Of Canada assumed coverage on Costco Wholesale in a research note on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 price target for the company. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus target price of $1,059.53.

Costco Wholesale Stock Down 0.5%

Shares of Costco Wholesale stock opened at $956.99 on Thursday. The company has a market cap of $424.41 billion, a price-to-earnings ratio of 48.14, a price-to-earnings-growth ratio of 4.57 and a beta of 0.87. The company's 50 day moving average is $948.67 and its 200 day moving average is $981.23. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month 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.

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

Costco Wholesale Announces Dividend

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

Insider Buying and Selling

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale 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 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 position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.10% of the company's stock.

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source