State of Michigan Retirement System Has $109.80 Million Position in Costco Wholesale Corporation $COST

Key Points

• Michigan’s retirement system reduced its Costco stake by 1.9% in the second quarter, selling 2,300 shares and retaining 117,369 shares valued at approximately $109.8 million. Institutional investors collectively own 68.48% of the company.
• Costco reported quarterly revenue of $70.53 billion, exceeding estimates, while EPS of $4.93 narrowly missed consensus. The stock trades at roughly 48 times earnings, highlighting its elevated valuation relative to expected growth.
• Costco paid a quarterly dividend of $1.47 per share, equivalent to a 0.6% annualized yield, and analysts maintain a “Moderate Buy” consensus with an average price target of $1,059.53 versus the reported $956.99 share price.

State of Michigan Retirement System lessened its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.9% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 117,369 shares of the retailer's stock after selling 2,300 shares during the period. State of Michigan Retirement System's holdings in Costco Wholesale were worth $109,795,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Diamant Asset Management Inc. increased its stake in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the period. Norges Bank acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $5,195,415,000. Corient Private Wealth LLC lifted its stake in shares of Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Ascentis Wealth Management LLC boosted its holdings in Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer's stock valued at $2,549,616,000 after acquiring an additional 2,497,652 shares during the last quarter. Finally, Cardano Risk Management B.V. boosted its holdings in Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock valued at $1,539,346,000 after acquiring an additional 1,607,833 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Price Performance

Shares of COST opened at $956.99 on Thursday. 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 1 year low of $844.06 and a 1 year high of $1,096.50. The stock has a market cap of $424.41 billion, a P/E ratio of 48.14, a price-to-earnings-growth ratio of 4.57 and a beta of 0.87. The stock's 50-day moving average price is $948.67 and its two-hundred day moving average price is $981.23.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted 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 for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the previous year, the firm posted $4.28 earnings per share. On average, equities analysts predict that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date 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 currently 29.58%.

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director owned 4,779 shares of the company's stock, valued at approximately $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 accessible through the SEC website. Insiders own 0.10% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: New Medicare Advantage offering could expand Costco’s membership value proposition. Costco is partnering with nonprofit SCAN Health Plan to offer co-branded Medicare Advantage and supplemental plans, initially in two states pending regulatory approval. The broader rollout could include pharmacy, vision, hearing and over-the-counter benefits, potentially strengthening member retention and creating an additional revenue stream. Costco’s Next Big Bulk Item: Medicare Advantage
• Positive Sentiment: Growing cash reserves may support another special dividend. Commentary suggests Costco’s accumulating cash could lead to a substantial shareholder payout this fall. While no dividend has been announced, the possibility may provide support for the stock and reinforce Costco’s shareholder-return appeal. Costco's Cash Pile Keeps Building
• Neutral Sentiment: Costco’s merchandising strategy continues to drive member engagement. The company’s practice of rotating or discontinuing popular products can frustrate shoppers, but limited availability and surprise product returns may encourage more frequent warehouse visits and support the treasure-hunt shopping experience. Costco keeps discontinuing popular products
• Negative Sentiment: Valuation leaves limited room for execution missteps. COST trades at roughly 48 times earnings, with a PEG ratio above 4, and analysts have questioned whether its strong multiyear performance is already reflected in the share price. The company’s latest quarterly EPS slightly missed consensus, although revenue exceeded expectations, adding to investor focus on earnings growth. Costco Stock Looks Fully Priced

Wall Street Analyst Weigh In

Several analysts have weighed in on COST shares. Bank of America boosted their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. JPMorgan Chase & Co. reduced their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. UBS Group lifted their price target on shares of 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. Roth Capital boosted their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research note on Friday, May 29th. Finally, TD Cowen reissued a "buy" rating and set a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,059.53.

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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