Two Sigma Securities LLC Buys New Shares in Costco Wholesale Corporation $COST

Key Points

• Two Sigma Securities initiated a Costco position by purchasing 1,277 shares valued at approximately $1.2 million. Institutional investors and hedge funds collectively own 68.48% of Costco’s stock.
• Analysts maintain a favorable outlook, with 22 Buy ratings, 12 Holds, and one Sell rating, producing a consensus “Moderate Buy” rating and average price target of $1,056.03.
• Costco shares opened at $902.60, while the company recently declared a quarterly dividend of $1.47 per share, equal to a $5.88 annualized payout and a 0.7% yield.

Two Sigma Securities LLC bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 1,277 shares of the retailer's stock, valued at approximately $1,195,000.

Other large investors have also recently bought and sold shares of the company. Bank of America Corp DE acquired a new stake in shares of Costco Wholesale in the 2nd quarter valued at approximately $6,781,946,000. Diamant Asset Management Inc. increased its holdings in Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after buying an additional 6,720,130 shares during the last quarter. Norges Bank bought a new stake in Costco Wholesale during the fourth quarter worth $5,195,415,000. Corient Private Wealth LLC raised its position in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Costco Wholesale in the second quarter valued at $2,362,188,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

COST has been the subject of a number of analyst reports. Truist Financial lifted their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. TD Cowen reiterated a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Bank of America lifted their price target 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. Roth Capital boosted their price target on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. Finally, Mizuho set a $1,100.00 price objective on Costco Wholesale in a research note on Monday, June 1st. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $1,056.03.

Costco Wholesale Price Performance

Shares of COST opened at $902.60 on Thursday. The company's 50-day moving average is $942.01 and its 200-day moving average is $975.58. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a market capitalization of $400.29 billion, a PE ratio of 45.40, a PEG ratio of 3.79 and a beta of 0.86. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the firm'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 transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analyst upgrade and expansion support the growth outlook. Freedom Broker upgraded Costco from “hold” to “buy” and assigned a $1,030 price target, implying meaningful upside. Separately, Costco plans to open 14 warehouses in the U.S. and Canada before year-end, which could expand membership, sales and long-term earnings. Freedom Broker upgrade and Costco expansion reports Costco warehouse expansion article
• Positive Sentiment: Seasonal merchandising remains a membership benefit. Costco is adding a popular seasonal item to its lineup, reinforcing its strategy of offering limited-time and value-oriented products that can drive store traffic and encourage member purchases. Costco seasonal merchandise article
• Neutral Sentiment: Labor practices highlight Costco’s employee-retention advantage. A report about a meat cutter earning $32 per hour with benefits and job security underscores Costco’s reputation for relatively strong employee compensation. That may support service quality and retention, although higher labor costs could pressure margins over time. Costco employee compensation article
• Neutral Sentiment: Return-product resale operations provide limited incremental value. Reports that Costco sends some returned merchandise to liquidation auctions reveal a secondary channel for recovering value, but the financial impact appears too small to materially change the investment case. Costco returns and liquidation article
• Negative Sentiment: Costco reportedly shut down an online marketplace service. The abrupt closure raises questions about e-commerce execution and could disappoint investors seeking faster digital growth, even if the move ultimately reflects strategic streamlining. Costco online marketplace closure article
• Negative Sentiment: Valuation and competitive concerns are weighing on sentiment. Commentary questioning whether Costco has lost some of its competitive edge, along with comparisons to lower-priced dollar stores, adds pressure to an already expensive stock. The recent underperformance makes investors less willing to pay a premium multiple without stronger growth. Costco competitive edge commentary

Costco Wholesale Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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