Sumitomo Life Insurance Co. Makes New Investment in Costco Wholesale Corporation $COST

Sumitomo Life Insurance Co. bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 4,334 shares of the retailer’s stock, valued at approximately $4,054,000.

Several other hedge funds and other institutional investors have also made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale in the second quarter valued at about $28,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at about $28,000. Finally, Entrust Financial LLC purchased a new position in shares of Costco Wholesale in the fourth quarter worth about $31,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.10% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on COST. The Goldman Sachs Group boosted their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Truist Financial increased their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a report on Friday, May 29th. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Roth Capital boosted their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a report on Friday, May 29th. Finally, TD Cowen restated a “buy” rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,059.53.

More Costco Wholesale News

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 Trading Down 1.2%

Shares of COST stock opened at $928.48 on Thursday. The company’s 50-day moving average price is $944.65 and its 200-day moving average price is $978.84. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a market cap of $411.76 billion, a price-to-earnings ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50.

Costco Wholesale Dividend Announcement

The company 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 of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s payout ratio is 29.58%.

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.