TrueWealth Financial Partners Makes New Investment in Costco Wholesale Corporation $COST

TrueWealth Financial Partners bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 808 shares of the retailer’s stock, valued at approximately $805,000. Costco Wholesale makes up about 0.3% of TrueWealth Financial Partners’ investment portfolio, making the stock its 27th largest position.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its position in Costco Wholesale by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock valued at $37,615,889,000 after buying an additional 165,349 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Costco Wholesale by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock worth $8,919,573,000 after acquiring an additional 26,690 shares in the last quarter. Morgan Stanley boosted its holdings in Costco Wholesale by 1.1% in the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock worth $8,212,433,000 after acquiring an additional 107,775 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Costco Wholesale by 11.5% in the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after acquiring an additional 773,651 shares during the last quarter. Finally, Diamant Asset Management Inc. grew its stake in shares of Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have recently issued reports on COST shares. Mizuho set a $1,100.00 price target on Costco Wholesale in a research report on Monday, June 1st. The Goldman Sachs Group lifted their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Citigroup assumed coverage on shares of 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. Sanford C. Bernstein increased their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a report on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft raised their price target on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $1,059.07.

Costco Wholesale Price Performance

NASDAQ COST opened at $955.17 on Friday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock has a 50-day moving average of $956.95 and a 200 day moving average of $982.32. The company has a market capitalization of $423.60 billion, a price-to-earnings ratio of 48.05, a PEG ratio of 4.71 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The business had revenue of $70.53 billion during the quarter, compared to analysts’ expectations of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period last year, the firm posted $4.28 EPS. On average, sell-side analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale’s payout ratio is presently 29.58%.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco is reportedly testing a new gasoline-sales strategy that could expand fuel-related revenue and potentially make gas stations a more meaningful contributor to the company’s business model. The long-term opportunity could support investor interest if the experiment improves traffic, margins, or membership economics. Costco: A New Experiment With Gasoline Sales Could Fundamentally Transform The Company
• Positive Sentiment: Costco continues to receive favorable momentum coverage, supported by its loyal membership base, resilient sales, and long-term earnings and dividend-growth record. A new hydration-product partnership with Coco5 also gives the retailer another branded product aimed at health-conscious shoppers. Here’s Why Costco Is a Strong Momentum Stock
• Neutral Sentiment: The Federal Reserve held interest rates at 3.5%-3.75%. Stable rates avoid an immediate financing shock, but elevated borrowing costs can limit consumer spending and keep pressure on richly valued retail stocks. Costco’s valuation remains demanding, with a reported forward earnings multiple near 48 and a PEG ratio above 4.
• Neutral Sentiment: Recent comparisons with Walmart frame Costco as a high-quality retailer with strong customer loyalty and digital growth, but investors must balance those strengths against its higher valuation and expectations for continued execution.
• Negative Sentiment: Costco agreed to a $14 million settlement involving allegations that promotional emails sent to Washington shoppers used misleading expiration language. Costco denies wrongdoing, but the settlement may create reputational and compliance concerns. Costco’s $14 Million Email Settlement
• Negative Sentiment: An animal-welfare investigation alleging severe mistreatment and biosecurity failures at an organic chicken supplier linked to Costco could increase scrutiny of the company’s supply-chain oversight and create potential legal or reputational costs.
• Negative Sentiment: Costco’s reported quarterly earnings slightly missed consensus estimates, despite revenue exceeding expectations. Combined with its elevated valuation, even modest earnings disappointments can weigh on the stock.

Insiders Place Their Bets

In related news, Director Kenneth D. Denman sold 885 shares of the 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 transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

About Costco Wholesale

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.