Sumitomo Life Insurance Co. Acquires New Holdings in Costco Wholesale Corporation $COST

Sumitomo Life Insurance Co. bought a new stake in Costco Wholesale Corporation (NASDAQ:COST) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 4,334 shares of the retailer’s stock, valued at approximately $4,054,000.

Several other hedge funds also recently bought and sold shares of COST. World Investment Advisors grew its stake in Costco Wholesale by 8.4% during the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock worth $15,835,000 after purchasing an additional 1,560 shares in the last quarter. Sarasin & Partners LLP increased its holdings in Costco Wholesale by 6.9% during the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after purchasing an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD acquired a new stake in Costco Wholesale in the 4th quarter valued at about $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust purchased a new position in shares of Costco Wholesale in the 4th quarter valued at about $5,813,000. Finally, Hyperion Asset Management Ltd boosted its stake in shares of Costco Wholesale by 9.0% in the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock valued at $64,325,000 after buying an additional 5,656 shares during the period. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the firm’s 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 sale, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This trade 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 can be accessed through this link. 0.10% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of analysts recently weighed in on COST shares. Sanford C. Bernstein upped their target price on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. DA Davidson reissued a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday, June 4th. Weiss Ratings downgraded shares of Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Finally, Oppenheimer raised their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a report on Tuesday, May 19th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,059.53.

Costco Wholesale Trading Down 1.2%

COST opened at $928.48 on Thursday. 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 one year low of $844.06 and a one year high of $1,096.50. The company has a market cap of $411.76 billion, a P/E ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87. The business’s 50-day simple moving average is $944.65 and its 200-day simple moving average is $978.84.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date was Friday, July 24th. 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.

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.