State of Michigan Retirement System Has $119.24 Million Stake in Costco Wholesale Corporation $COST

Key Points

• State of Michigan Retirement System reduced its Costco stake by 29.5% in the first quarter, selling 50,100 shares and leaving it with 119,669 shares worth about $119.24 million. Costco remains its 26th-largest holding and makes up roughly 0.6% of the portfolio.
• Costco reported fiscal-quarter earnings of $4.93 per share, just shy of estimates, while revenue of $70.53 billion slightly beat expectations. Analysts still expect strong full-year results, with consensus EPS projected at 20.38.
• Wall Street remains broadly bullish on Costco, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating. The company also announced a quarterly dividend of $1.47 per share, payable August 7, for an annualized yield of about 0.6%.

State of Michigan Retirement System trimmed its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 29.5% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 119,669 shares of the retailer's stock after selling 50,100 shares during the period. Costco Wholesale accounts for about 0.6% of State of Michigan Retirement System's investment portfolio, making the stock its 26th largest position. State of Michigan Retirement System's holdings in Costco Wholesale were worth $119,242,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the fourth quarter valued at approximately $27,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale in the fourth quarter worth $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the 4th quarter worth $28,000. Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the 4th quarter worth $31,000. Finally, Joseph Group Capital Management acquired a new position in Costco Wholesale in the 4th quarter valued at $33,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

More Costco Wholesale News

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

• Positive Sentiment: RBC Capital described Costco as one of retail’s best stories and a top industry player, pointing to its unique membership model, market share gains, and resilient consumer demand. Several articles highlighted that the stock was gaining on the analyst optimism, which helped support the shares. Article: Costco Stock (COST) Gains As Analyst Says It Is ‘One of the Best Stories in Retail’
• Positive Sentiment: Commentary on Costco’s June sales and digital growth suggested the retailer is still seeing strong demand, with its low-price, high-volume model continuing to attract shoppers and defend market share. Article: Are Costco's June Sales Enough to Defend Its Rich Valuation?
• Neutral Sentiment: Multiple pieces compared Costco with Walmart, generally framing COST as an elite defensive retailer but noting that investors are weighing Costco’s premium valuation against its growth durability. Article: Costco vs. Walmart: 1 Dividend-Paying Retail Giant Stands Above the Other
• Neutral Sentiment: Stories about Costco’s cultural popularity and employee success reinforced the brand’s strength and consumer appeal, but they are not likely to materially move the stock on their own. Article: The One Thing Everyone in America Can Agree On? Costco
• Negative Sentiment: Costco is facing a proposed class-action lawsuit over an allegedly contaminated protein powder product, which could raise concerns about quality controls and consumer trust if the case gains traction. Article: Costco (COST) Faces Protein Powder Heavy Metals Lawsuit And A Test Of Trust
• Negative Sentiment: Analysts also flagged that Costco’s rich valuation and slowing comparable-sales growth could limit further upside, even though the business remains fundamentally strong. Article: Are Costco's June Sales Enough to Defend Its Rich Valuation?

Costco Wholesale Trading Up 1.1%

Shares of COST stock opened at $926.43 on Tuesday. The firm has a market capitalization of $410.85 billion, a P/E ratio of 46.60, a price-to-earnings-growth ratio of 4.44 and a beta of 0.88. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm's fifty day simple moving average is $981.90 and its 200 day simple moving average is $976.64. 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 (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period last year, the company earned $4.28 earnings per share. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders 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 is currently 29.58%.

Analysts Set New Price Targets

Several brokerages recently commented on COST. Oppenheimer lifted their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Citigroup began coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price target for the company. Bank of America raised their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Roth Capital lifted their price objective on 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 objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Twenty-two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,059.07.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the 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 completion of the sale, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company's stock.

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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