Van ECK Associates Corp Cuts Holdings in Costco Wholesale Corporation $COST

Key Points

• Van ECK Associates reduced its Costco position by 11.2% in the second quarter, selling 14,416 shares and retaining 114,119 shares valued at approximately $106.8 million.
• Institutional investors own 68.48% of Costco, while analyst sentiment remains positive: 22 analysts rate the stock a Buy, 12 a Hold, and one a Sell, producing a “Moderate Buy” consensus and a $1,056.03 average price target.
• Costco shares opened at $910.18, with a market capitalization of $403.65 billion and a high valuation of 45.78 times earnings. The company recently paid a quarterly dividend of $1.47, equal to a 0.6% annualized yield.

Van ECK Associates Corp trimmed its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 11.2% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 114,119 shares of the retailer's stock after selling 14,416 shares during the quarter. Van ECK Associates Corp's holdings in Costco Wholesale were worth $106,755,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the company. Bank of America Corp DE bought a new stake in Costco Wholesale in the 2nd quarter worth approximately $6,781,946,000. Diamant Asset Management Inc. boosted its position in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the last quarter. Norges Bank bought a new position in shares of Costco Wholesale during the 4th quarter valued at approximately $5,195,415,000. Corient Private Wealth LLC boosted its position in shares of Costco Wholesale by 838.9% during the 4th 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 last quarter. Finally, Legal & General Group Plc purchased a new position in shares of Costco Wholesale in the second quarter valued at $2,362,188,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages recently weighed in on COST. BTIG Research restated a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research report on Thursday, September 3rd. Truist Financial lifted their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Sanford C. Bernstein set a $1,144.00 target price on shares of Costco Wholesale in a report on Friday. DA Davidson restated a "neutral" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday, September 3rd. Finally, TD Cowen reaffirmed a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. Twenty-two research 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's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $1,056.03.

Costco Wholesale Stock Performance

Costco Wholesale stock opened at $910.18 on Wednesday. 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 $403.65 billion, a P/E ratio of 45.78, a price-to-earnings-growth ratio of 3.80 and a beta of 0.86. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company's 50-day moving average is $942.45 and its 200 day moving average is $976.18.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's dividend payout ratio is 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by insiders.

Key Costco Wholesale News

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

• Positive Sentiment: Strong fourth-quarter sales: Costco reported fourth-quarter net sales of $93.9 billion, up 11.3% year over year. Digitally enabled comparable sales increased 19.5%, suggesting e-commerce and omnichannel initiatives remain important growth drivers. Costco's Q4 Sales Rise 11.3% as Digital Momentum Remains Strong
• Positive Sentiment: Analyst upgrade: Freedom Broker raised Costco from “hold” to “buy” and established a $1,030 price target, implying meaningful potential upside from recent trading levels. However, the upgrade has not yet overcome broader selling pressure. Costco Stock Falls Despite Freedom Broker Upgrade to Buy
• Neutral Sentiment: Returns and liquidation operations: Reports that Costco resells some returned merchandise through liquidation and B-stock auctions provide additional context on its inventory practices. The activity appears operational rather than a major new earnings catalyst, although it may help recover value from returned goods. How Costco Resells Items Returned Under Its Satisfaction Guarantee Policy
• Negative Sentiment: Premium valuation and competitive concerns: Costco’s recent underperformance has renewed debate over whether its high valuation is justified. Jim Cramer argued that the retailer may have lost some of its edge, while other commentary points to competition from discount stores. With a price-to-earnings ratio above 45, investors may be particularly sensitive to any slowdown in growth or membership appeal. Cramer Warns Costco May Have Lost Its Edge
• Negative Sentiment: Supplier bankruptcy headline: The loss of a Costco distribution deal contributed to a beverage brand’s Chapter 11 filing. This is not a direct financial threat to Costco, but it highlights vendor and product-selection risks within its merchandise ecosystem. Loss of Costco Deal Helps Push Beverage Brand Into Chapter 11

About Costco Wholesale

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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