Renaissance Technologies LLC Sells 673,546 Shares of Costco Wholesale Corporation $COST

Key Points

• Renaissance Technologies reduced its Costco stake by 97.2%, selling 673,546 shares in the first quarter and retaining 19,456 shares worth approximately $19.4 million. Institutional investors collectively own 68.48% of Costco.
• Costco reported quarterly EPS of $4.93, narrowly missing estimates, while revenue of $70.53 billion exceeded expectations. The stock trades at a high valuation, with a P/E ratio near 48, despite analysts maintaining a consensus “Moderate Buy” rating and an average price target of $1,059.07.
• Costco declared a quarterly dividend of $1.47 per share, equivalent to an annualized $5.88 dividend and a 0.6% yield. Investors are also monitoring potential growth from a new gasoline-sales strategy alongside legal, supply-chain, and reputational concerns.

Renaissance Technologies LLC cut its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 97.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 19,456 shares of the retailer's stock after selling 673,546 shares during the period. Renaissance Technologies LLC's holdings in Costco Wholesale were worth $19,387,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in Costco Wholesale during the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. bought a new position in shares of Costco Wholesale in the fourth quarter worth approximately $28,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale in the fourth quarter worth $28,000. Entrust Financial LLC purchased a new stake in shares of Costco Wholesale in the fourth quarter worth $31,000. Finally, Joseph Group Capital Management bought a new stake in shares of Costco Wholesale during the 4th quarter valued at $33,000. Institutional investors own 68.48% of the company's stock.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco is reportedly testing a new gasoline-sales strategy that could expand fuel-related revenue and potentially make gas stations a more meaningful contributor to the company’s business model. The long-term opportunity could support investor interest if the experiment improves traffic, margins, or membership economics. Costco: A New Experiment With Gasoline Sales Could Fundamentally Transform The Company
• Positive Sentiment: Costco continues to receive favorable momentum coverage, supported by its loyal membership base, resilient sales, and long-term earnings and dividend-growth record. A new hydration-product partnership with Coco5 also gives the retailer another branded product aimed at health-conscious shoppers. Here's Why Costco Is a Strong Momentum Stock
• Neutral Sentiment: The Federal Reserve held interest rates at 3.5%-3.75%. Stable rates avoid an immediate financing shock, but elevated borrowing costs can limit consumer spending and keep pressure on richly valued retail stocks. Costco’s valuation remains demanding, with a reported forward earnings multiple near 48 and a PEG ratio above 4.
• Neutral Sentiment: Recent comparisons with Walmart frame Costco as a high-quality retailer with strong customer loyalty and digital growth, but investors must balance those strengths against its higher valuation and expectations for continued execution.
• Negative Sentiment: Costco agreed to a $14 million settlement involving allegations that promotional emails sent to Washington shoppers used misleading expiration language. Costco denies wrongdoing, but the settlement may create reputational and compliance concerns. Costco’s $14 Million Email Settlement
• Negative Sentiment: An animal-welfare investigation alleging severe mistreatment and biosecurity failures at an organic chicken supplier linked to Costco could increase scrutiny of the company’s supply-chain oversight and create potential legal or reputational costs.
• Negative Sentiment: Costco’s reported quarterly earnings slightly missed consensus estimates, despite revenue exceeding expectations. Combined with its elevated valuation, even modest earnings disappointments can weigh on the stock.

Analyst Ratings Changes

Several analysts recently issued reports on COST shares. Truist Financial increased their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research report on Friday, May 29th. Royal Bank Of Canada began coverage on shares of Costco Wholesale in a research note on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 price objective for the company. Mizuho set a $1,100.00 price target on Costco Wholesale in a research note on Monday, June 1st. JPMorgan Chase & Co. decreased their target price on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Finally, The Goldman Sachs Group raised their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Costco Wholesale currently has a consensus rating of "Moderate Buy" and an average price target of $1,059.07.

Costco Wholesale Trading Down 1.9%

Costco Wholesale stock opened at $955.17 on Friday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock's 50 day simple moving average is $956.95 and its two-hundred day simple moving average is $982.32. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The firm has a market cap of $423.60 billion, a PE ratio of 48.05, a P/E/G ratio of 4.71 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its 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). The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter last year, the business earned $4.28 EPS. Analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is 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 (DPR) is presently 29.58%.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business's 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 sale, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.10% of the company's stock.

About Costco Wholesale

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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