Varma Mutual Pension Insurance Co Purchases Shares of 63,957 Costco Wholesale Corporation $COST

Key Points

• Varma Mutual Pension Insurance Co. acquired 63,957 Costco shares during the second quarter, valued at approximately $59.8 million. Institutional investors collectively own 68.48% of the company.
• Costco continues to show strong operating momentum, with August sales up 9.9% year over year and fiscal-year sales rising 10.2% to $297.3 billion. Analysts maintain a generally favorable outlook, with a consensus “Moderate Buy” rating and an average price target of $1,059.53.
• Despite the growth, investors face risks from Costco’s elevated valuation—about 46.7 times earnings—alongside a DOJ investigation into beef pricing and the abrupt discontinuation of the Costco Next marketplace.

Varma Mutual Pension Insurance Co acquired 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 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 63,957 shares of the retailer's stock, valued at approximately $59,830,000.

Other large investors have also recently made changes to their positions in the company. Brighton Jones LLC boosted its position in shares of Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after buying an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC raised its position in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after buying an additional 130 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after acquiring an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. boosted its holdings in Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after acquiring an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in Costco Wholesale by 2.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after acquiring an additional 182 shares during the last quarter. 68.48% of the stock is owned by institutional investors.

Trending Headlines about 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 Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company'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 sale, the director directly owned 4,779 shares of the company's stock, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

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

Costco Wholesale Announces Dividend

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 $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's payout ratio is currently 29.58%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a research report on Monday, June 1st. DA Davidson restated a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research note on Thursday, June 4th. Royal Bank Of Canada assumed coverage on Costco Wholesale in a research report on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 price target for the company. Finally, Weiss Ratings cut Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target 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.

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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