Redwood Investment Management LLC Invests $1.87 Million in Costco Wholesale Corporation $COST

Key Points

• Redwood Investment Management acquired 1,998 Costco shares worth approximately $1.87 million in the second quarter. Institutional investors collectively own 68.48% of the company.
• Analyst sentiment remains favorable, with 21 Buy, 12 Hold, and one Sell rating; Costco has a consensus “Moderate Buy” rating and an average price target of $1,056.90.
• Costco shares opened at $915.74, while the company paid a quarterly dividend of $1.47 per share, representing a 0.6% annualized yield and a 29.58% payout ratio.

Redwood Investment Management LLC acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 1,998 shares of the retailer's stock, valued at approximately $1,869,000.

Several other large investors have also recently added to or reduced their stakes in the business. Palisade Asset Management LLC boosted its position in Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after buying an additional 10 shares during the period. Graybill Wealth Management LTD. increased its position in shares of Costco Wholesale by 0.3% during the fourth quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock worth $2,754,000 after acquiring an additional 10 shares during the period. Wealth Effects LLC increased its position in shares of Costco Wholesale by 1.2% during the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after acquiring an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. raised its stake in shares of Costco Wholesale by 1.8% in the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after acquiring an additional 10 shares in the last quarter. Finally, First National Bank of Hutchinson raised its stake in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after acquiring an additional 10 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently commented on the company. Roth Capital boosted their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research note on Friday, May 29th. Sanford C. Bernstein set a $1,144.00 price target on Costco Wholesale in a report on Friday. Oppenheimer increased their price target on 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. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $1,091.00 price objective on shares of Costco Wholesale in a research note on Friday. Finally, UBS Group boosted their price objective on 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. Twenty-one research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus target price of $1,056.90.

Insider Activity

In other news, Director Kenneth Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Stock Performance

Shares of COST stock opened at $915.74 on Monday. The company has a market cap of $406.11 billion, a P/E ratio of 46.06, a PEG ratio of 3.80 and a beta of 0.86. The firm has a fifty day moving average price of $943.58 and a 200 day moving average price of $977.46. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. 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 is currently 29.58%.

Key Costco Wholesale News

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

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco's August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

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.

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