Suncoast Equity Management Purchases Shares of 1,409 Costco Wholesale Corporation $COST

Key Points

• Suncoast Equity Management acquired 1,409 Costco shares worth approximately $1.318 million during the second quarter. Institutional investors and hedge funds collectively own 68.48% of the company.
• Costco recently reported quarterly revenue of $70.53 billion, exceeding estimates, but EPS of $4.93 narrowly missed expectations. The stock trades at a high P/E ratio of 47.67, underscoring valuation risk.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $1,059.53, while Costco pays a quarterly dividend of $1.47 per share for a 0.6% yield.

Suncoast Equity Management acquired a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 1,409 shares of the retailer's stock, valued at approximately $1,318,000.

Other large investors also recently made changes to their positions in the company. Choreo LLC raised its stake in shares of Costco Wholesale by 0.5% in the 2nd quarter. Choreo LLC now owns 20,993 shares of the retailer's stock valued at $19,638,000 after acquiring an additional 108 shares during the period. Symphony Financial Ltd. Co. lifted its holdings in shares of Costco Wholesale by 10.4% during the 2nd quarter. Symphony Financial Ltd. Co. now owns 4,146 shares of the retailer's stock valued at $3,919,000 after acquiring an additional 392 shares in the last quarter. LightSquare Wealth Management LLC boosted its position in Costco Wholesale by 5.6% during the 2nd quarter. LightSquare Wealth Management LLC now owns 832 shares of the retailer's stock worth $779,000 after purchasing an additional 44 shares during the period. St. Johns Investment Management Company LLC boosted its position in Costco Wholesale by 1.5% during the 2nd quarter. St. Johns Investment Management Company LLC now owns 2,095 shares of the retailer's stock worth $1,960,000 after purchasing an additional 31 shares during the period. Finally, Archer Investment Corp increased its holdings in Costco Wholesale by 3.1% in the 2nd quarter. Archer Investment Corp now owns 970 shares of the retailer's stock valued at $907,000 after purchasing an additional 29 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction 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 transaction, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.10% of the stock is currently owned by corporate insiders.

Trending Headlines about Costco Wholesale

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 Performance

Shares of NASDAQ COST opened at $947.74 on Monday. The stock's 50 day moving average price is $947.14 and its two-hundred day moving average price is $981.04. 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 capitalization of $420.30 billion, a P/E ratio of 47.67, a PEG ratio of 4.51 and a beta of 0.87. 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 issued its 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 firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the previous year, the business posted $4.28 EPS. On average, analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is 29.58%.

Analysts Set New Price Targets

Several research analysts have commented on the company. HC Wainwright reissued a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Bank of America upped their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. DA Davidson reiterated a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research note on Thursday, June 4th. BTIG Research reiterated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Finally, The Goldman Sachs Group boosted their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $1,059.53.

Costco Wholesale Company 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.

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