Jennison Associates LLC Cuts Position in Costco Wholesale Corporation $COST

Jennison Associates LLC decreased its stake in Costco Wholesale Corporation (NASDAQ:COST) by 6.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,166,050 shares of the retailer’s stock after selling 146,390 shares during the period. Costco Wholesale makes up 1.2% of Jennison Associates LLC’s investment portfolio, making the stock its 19th largest holding. Jennison Associates LLC owned 0.49% of Costco Wholesale worth $2,026,275,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the fourth quarter valued at about $27,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the 4th quarter worth approximately $28,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale during the 4th quarter worth approximately $28,000. Entrust Financial LLC acquired a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $31,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $33,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on COST shares. Weiss Ratings downgraded Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Oppenheimer upped their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a report on Tuesday, May 19th. JPMorgan Chase & Co. dropped their price target on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Bank of America lifted their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Finally, UBS Group boosted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research report on Wednesday, May 20th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Costco Wholesale has a consensus rating of “Moderate Buy” and an average price target of $1,059.53.

Insider Buying and Selling

In related news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Costco Wholesale Price Performance

COST stock opened at $947.74 on Friday. The stock’s 50 day moving average price is $947.14 and its 200 day moving average price is $980.95. The firm has a market cap of $420.30 billion, a P/E ratio of 47.67, a PEG ratio of 4.44 and a beta of 0.87. 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 Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

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

Costco Wholesale Dividend Announcement

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

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
• Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
• Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
• Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
• Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
• Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

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.