William Blair Investment Management LLC Buys New Position in Costco Wholesale Corporation $COST

William Blair Investment Management LLC bought a new stake in Costco Wholesale Corporation (NASDAQ:COST) in the 2nd quarter, HoldingsChannel.com reports. The institutional investor bought 199,355 shares of the retailer’s stock, valued at approximately $186,491,000.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Landscape Capital Management L.L.C. acquired a new stake in shares of Costco Wholesale during the second quarter worth about $1,770,000. Concord Investment Counsel Inc. acquired a new position in shares of Costco Wholesale in the second quarter valued at approximately $4,507,000. Korea Investment CORP acquired a new position in shares of Costco Wholesale in the second quarter valued at approximately $262,533,000. EP Wealth Advisors LLC purchased a new stake in Costco Wholesale during the 2nd quarter worth approximately $145,770,000. Finally, Heartland Bank & Trust Co purchased a new stake in Costco Wholesale during the 2nd quarter worth approximately $1,573,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have commented on COST. Citigroup started coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target for the company. DA Davidson reaffirmed a “neutral” rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday, June 4th. UBS Group increased their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. Mizuho set a $1,100.00 target price on Costco Wholesale in a report on Monday, June 1st. Finally, Oppenheimer boosted their target price 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. Twenty-two 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. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Stock Down 1.2%

Shares of Costco Wholesale stock opened at $928.48 on Thursday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a 50 day moving average of $944.65 and a 200 day moving average of $978.84. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company 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.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Costco Wholesale News Roundup

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 Activity

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction 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 of the company’s stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.10% of the company’s stock.

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.