Northwestern Mutual Wealth Management Co. Decreases Stock Position in Costco Wholesale Corporation $COST

Key Points

• Northwestern Mutual Wealth Management reduced its Costco stake by 1.4% in the second quarter, selling 2,638 shares and retaining 189,471 shares valued at approximately $177.2 million. Institutional investors collectively own 68.48% of Costco.
• Costco reported strong fourth-quarter sales of $93.9 billion, up 11.3% year over year, while digitally enabled comparable sales rose 19.5%. However, the stock’s premium valuation—around 45.8 times earnings—has fueled concerns about competition and slowing growth.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,056.03, despite COST trading down 0.6% at $910.18 and an insider selling 885 shares.

Northwestern Mutual Wealth Management Co. lessened its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.4% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 189,471 shares of the retailer's stock after selling 2,638 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Costco Wholesale were worth $177,244,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $27,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale in the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. bought a new stake in Costco Wholesale during the 2nd quarter valued at $28,000. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale during the 4th quarter valued at $28,000. Finally, Burk Holdings LLC bought a new stake in Costco Wholesale in the 2nd quarter worth $30,000. 68.48% of the stock is currently owned by institutional investors.

Insider Activity

In related news, Director Kenneth Denman sold 885 shares of Costco Wholesale stock in a transaction dated 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 directly owned 4,779 shares of the company's stock, 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 at this hyperlink. 0.10% of the stock is currently owned by insiders.

Key Costco Wholesale News

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

• Positive Sentiment: Strong fourth-quarter sales: Costco reported fourth-quarter net sales of $93.9 billion, up 11.3% year over year. Digitally enabled comparable sales increased 19.5%, suggesting e-commerce and omnichannel initiatives remain important growth drivers. Costco's Q4 Sales Rise 11.3% as Digital Momentum Remains Strong
• Positive Sentiment: Analyst upgrade: Freedom Broker raised Costco from “hold” to “buy” and established a $1,030 price target, implying meaningful potential upside from recent trading levels. However, the upgrade has not yet overcome broader selling pressure. Costco Stock Falls Despite Freedom Broker Upgrade to Buy
• Neutral Sentiment: Returns and liquidation operations: Reports that Costco resells some returned merchandise through liquidation and B-stock auctions provide additional context on its inventory practices. The activity appears operational rather than a major new earnings catalyst, although it may help recover value from returned goods. How Costco Resells Items Returned Under Its Satisfaction Guarantee Policy
• Negative Sentiment: Premium valuation and competitive concerns: Costco’s recent underperformance has renewed debate over whether its high valuation is justified. Jim Cramer argued that the retailer may have lost some of its edge, while other commentary points to competition from discount stores. With a price-to-earnings ratio above 45, investors may be particularly sensitive to any slowdown in growth or membership appeal. Cramer Warns Costco May Have Lost Its Edge
• Negative Sentiment: Supplier bankruptcy headline: The loss of a Costco distribution deal contributed to a beverage brand’s Chapter 11 filing. This is not a direct financial threat to Costco, but it highlights vendor and product-selection risks within its merchandise ecosystem. Loss of Costco Deal Helps Push Beverage Brand Into Chapter 11

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on COST. Royal Bank Of Canada initiated coverage on Costco Wholesale in a report on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 price target on the stock. Truist Financial boosted their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research note on Friday, May 29th. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. TD Cowen reiterated a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,056.03.

Costco Wholesale Trading Down 0.6%

COST opened at $910.18 on Wednesday. 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 Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The stock has a market cap of $403.65 billion, a PE ratio of 45.78, a PEG ratio of 3.80 and a beta of 0.86. The business has a 50 day moving average of $942.45 and a 200-day moving average of $976.18.

Costco Wholesale Announces Dividend

The firm also recently announced 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 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 29.58%.

Costco Wholesale Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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