Payden & Rygel Raises Holdings in Costco Wholesale Corporation $COST

Key Points

• Payden & Rygel increased its Costco stake by 1,006.7% in the second quarter, purchasing 9,060 additional shares and bringing its holdings to 9,960 shares worth approximately $9.3 million. Institutional investors collectively own 68.48% of Costco.
• Costco’s shares were trading at $933.51, down 2.5%, with a market capitalization of roughly $414 billion and a high price-to-earnings ratio of 46.96. The company’s latest quarterly revenue exceeded estimates, but EPS narrowly missed expectations, at $4.93 versus $4.94.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $1,059.53, while Costco pays a quarterly dividend of $1.47, representing a 0.6% yield and a 29.58% payout ratio.

Payden & Rygel raised its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1,006.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,960 shares of the retailer's stock after purchasing an additional 9,060 shares during the period. Payden & Rygel's holdings in Costco Wholesale were worth $9,317,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale during the 4th quarter worth approximately $27,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale during the fourth quarter worth about $28,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale during the fourth quarter worth approximately $28,000. Manning & Napier Advisors LLC lifted its stake in Costco Wholesale by 750.0% in the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock valued at $34,000 after buying an additional 30 shares during the last quarter. Finally, Entrust Financial LLC acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at approximately $31,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Down 2.5%

Shares of Costco Wholesale stock opened at $933.51 on Friday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week 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. The company's 50-day simple moving average is $947.83 and its 200-day simple moving average is $981.19. The firm has a market cap of $413.99 billion, a price-to-earnings ratio of 46.96, a price-to-earnings-growth ratio of 4.55 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same period in the prior year, the company earned $4.28 earnings per share. As a group, equities research analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share 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 issued a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

Insider Buying and Selling at Costco Wholesale

In related 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 transaction, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. BTIG Research reiterated a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research report on Friday, May 29th. Truist Financial increased their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. TD Cowen reissued a "buy" rating and set a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Finally, Roth Capital lifted their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research note on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with nonprofit insurer SCAN Group to offer limited Costco-branded Medicare Advantage and supplemental plans, initially in select states. The initiative targets Costco’s sizable senior-member base and gives the retailer exposure to the large Medicare market, although the financial contribution is likely to develop gradually. Costco Enters The Medicare Insurance Market
• Positive Sentiment: Costco increased its dividend by 13.1%. The raise signals confidence in cash generation and strengthens the shareholder-return case, though the regular dividend yield remains relatively modest because of COST’s high share price. Costco Just Upped Its Dividend by 13.1%
• Positive Sentiment: Additional growth engines are emerging. Analysts point to Costco’s membership model, Kirkland Signature products, retail media, artificial-intelligence-powered search and pharmacy operations as areas that could support growth beyond warehouse sales. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Product news is likely to have limited stock impact. Costco brought back a popular discontinued item, which may support member engagement but is not material to companywide earnings. Costco Brought Back a Popular Favorite
• Negative Sentiment: Valuation and retail concerns are weighing on the shares. COST trades at a high earnings multiple, leaving less room for execution disappointments. Its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations, while the stock declined more than the broader market in the latest session. Why Costco Fell More Than the Broader Market

Costco Wholesale Company 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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