TRB Wealth Management LLC Purchases New Holdings in Costco Wholesale Corporation $COST

Key Points

• TRB Wealth Management acquired 1,291 Costco shares worth approximately $1.21 million during the second quarter. Institutional investors and hedge funds collectively own 68.48% of the company.
• Wall Street remains broadly bullish: 22 analysts rate Costco a Buy, 11 recommend Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $1,059.53.
• Costco continues to show strong sales momentum, but its valuation is elevated at about 46.7 times earnings. Shares opened at $928.48, while regulatory scrutiny over beef prices and a recent insider sale add potential risks.

TRB Wealth Management LLC acquired a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The fund acquired 1,291 shares of the retailer's stock, valued at approximately $1,208,000.

Other institutional investors also recently made changes to their positions in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $27,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale in the fourth quarter valued at $28,000. C M Bidwell & Associates Ltd. acquired a new stake in Costco Wholesale in the second quarter valued at $28,000. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale during the 4th quarter valued at $28,000. Finally, Entrust Financial LLC bought a new position in Costco Wholesale during the 4th quarter valued at $31,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

COST has been the subject of several research analyst reports. 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 research report on Thursday, July 9th. Oppenheimer increased their price target on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $1,120.00 price target on shares of Costco Wholesale in a research note on Thursday, August 6th. TD Cowen reissued a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, UBS Group upped their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research note on Wednesday, May 20th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,059.53.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report.
• Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice
• Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution.

Insider Buying and Selling at Costco Wholesale

In related 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 completion of the sale, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Stock Down 1.2%

COST stock opened at $928.48 on Thursday. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The firm has a fifty day moving average price of $944.65 and a two-hundred day moving average price of $978.84. The firm has a market cap of $411.76 billion, a price-to-earnings ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend 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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

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