Smith Group Asset Management LLC Grows Stake in Costco Wholesale Corporation $COST

Key Points

• Smith Group Asset Management increased its Costco stake by 7% in the second quarter, owning 66,244 shares worth approximately $62.0 million. Institutional investors collectively own 68.48% of the company.
• Analysts maintain a generally positive outlook, with 22 Buy, 11 Hold and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $1,059.53.
• Costco reported quarterly revenue of $70.53 billion, exceeding expectations, but EPS of $4.93 narrowly missed estimates. Shares trade at a high P/E ratio of 47.67, while the company pays a quarterly dividend of $1.47, yielding approximately 0.6%.

Smith Group Asset Management LLC increased its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.0% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 66,244 shares of the retailer's stock after purchasing an additional 4,349 shares during the period. Costco Wholesale accounts for approximately 2.5% of Smith Group Asset Management LLC's investment portfolio, making the stock its 13th biggest position. Smith Group Asset Management LLC's holdings in Costco Wholesale were worth $61,969,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Brighton Jones LLC boosted its stake in shares of Costco Wholesale by 12.3% in the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after acquiring an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC raised its stake in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares during the last quarter. Sivia Capital Partners LLC raised its stake in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. lifted its holdings in Costco Wholesale by 1.1% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after purchasing an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. lifted its holdings in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after purchasing an additional 182 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

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 value of $847,343.25. Following 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 position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.10% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. dropped their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Sanford C. Bernstein raised their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price target on the stock. Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Weiss Ratings downgraded shares of Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, June 23rd. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $1,059.53.

More Costco Wholesale News

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
• Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
• Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
• Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
• Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
• Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

Costco Wholesale Stock Up 1.5%

Shares of NASDAQ:COST opened at $947.74 on Friday. 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 $420.30 billion, a P/E ratio of 47.67, a PEG ratio of 4.44 and a beta of 0.87. The business has a fifty day moving average of $947.14 and a two-hundred day moving average of $980.95. 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 (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 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 company had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the prior year, the firm earned $4.28 EPS. On average, research analysts expect that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Shareholders 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 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is 29.58%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source