X Square Capital LLC Acquires Shares of 2,782 Costco Wholesale Corporation $COST

Key Points

• X Square Capital LLC initiated a Costco stake by purchasing 2,782 shares worth approximately $2.6 million during the second quarter. Hedge funds and other institutional investors collectively own 68.48% of the company.
• Costco shares opened at $928.48, down 1.2%, and trade at a relatively high P/E ratio of 46.70. The company pays a quarterly dividend of $1.47 per share, representing a 0.6% yield.
• Director Kenneth D. Denman sold 885 shares for approximately $847,000, while analysts remain broadly positive with a “Moderate Buy” consensus and an average price target of $1,059.53.

X Square Capital LLC bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 2,782 shares of the retailer's stock, valued at approximately $2,602,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Palisade Asset Management LLC lifted its position in Costco Wholesale by 1.4% during the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after acquiring an additional 10 shares during the period. Graybill Wealth Management LTD. increased its stake in shares of Costco Wholesale by 0.3% during the fourth quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after purchasing an additional 10 shares in the last quarter. Wealth Effects LLC increased its stake in shares of Costco Wholesale by 1.2% during the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after purchasing an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. lifted its holdings in shares of Costco Wholesale by 1.8% during the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after purchasing an additional 10 shares during the last quarter. Finally, First National Bank of Hutchinson lifted its holdings in shares of Costco Wholesale by 0.9% during the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after purchasing an additional 10 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the firm'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 owned 4,779 shares of the company's stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.10% of the company's stock.

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 stock has a market capitalization of $411.76 billion, a P/E ratio of 46.70, a P/E/G ratio of 3.89 and a beta of 0.87. The business has a fifty day moving average price of $944.65 and a 200-day moving average price of $978.84.

Costco Wholesale Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 7th. Shareholders 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 is currently 29.58%.

Costco Wholesale News Summary

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.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on COST. Oppenheimer upped their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 19th. Bank of America lifted their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Sanford C. Bernstein boosted their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a report on Friday, May 29th. Citigroup assumed coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 target price on the stock. Finally, Truist Financial raised their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus target price of $1,059.53.

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.

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