OVERSEA CHINESE BANKING Corp Ltd Makes New Investment in Costco Wholesale Corporation $COST

Key Points

• OVERSEA CHINESE BANKING Corp Ltd initiated a Costco position of 11,059 shares valued at approximately $10.3 million during the second quarter. Institutional investors collectively own 68.48% of Costco’s outstanding stock.
• Analyst sentiment remains favorable, with 22 Buy ratings, 11 Holds and one Sell; MarketBeat reports a “Moderate Buy” consensus and an average price target of $1,059.53.
• Costco shares opened at $943.89, while the company trades at a high valuation of 47.48 times earnings. It recently paid a quarterly dividend of $1.47 per share, equivalent to a 0.6% annualized yield.

OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 11,059 shares of the retailer's stock, valued at approximately $10,342,000.

A number of other institutional investors have also recently made changes to their positions in the company. Geode Capital Management LLC raised its stake in Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock valued at $8,919,573,000 after acquiring an additional 26,690 shares during the period. Morgan Stanley boosted its position in Costco Wholesale by 1.1% during the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock worth $8,212,433,000 after purchasing an additional 107,775 shares during the period. Bank of America Corp DE increased its stake in shares of Costco Wholesale by 11.5% in the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after purchasing an additional 773,651 shares in the last quarter. Diamant Asset Management Inc. raised its position in shares of 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 period. Finally, Corient Private Wealth LLC lifted its stake in shares of Costco Wholesale by 838.9% during 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 in the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on COST shares. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. Citigroup began coverage on Costco Wholesale in a research report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price target for the company. Weiss Ratings lowered Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, June 23rd. TD Cowen reissued a "buy" rating and set a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, UBS Group raised their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $1,059.53.

Costco Wholesale Stock Down 0.2%

Shares of NASDAQ:COST opened at $943.89 on Tuesday. The firm has a fifty day moving average price of $945.65 and a two-hundred day moving average price of $979.60. 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 debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a dividend of $1.47 per share. 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 dividend payout ratio (DPR) is currently 29.58%.

Key Costco Wholesale News

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

Insider Transactions at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction dated 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 transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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).

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