William Blair Investment Management LLC Acquires Shares of 199,355 Costco Wholesale Corporation $COST

William Blair Investment Management LLC bought a new position in Costco Wholesale Corporation (NASDAQ:COST) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 199,355 shares of the retailer’s stock, valued at approximately $186,491,000.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Geode Capital Management LLC lifted its position in Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock worth $8,919,573,000 after buying an additional 26,690 shares in the last quarter. Morgan Stanley grew its holdings in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock valued at $8,212,433,000 after buying an additional 107,775 shares in the last quarter. Bank of America Corp DE grew its holdings in Costco Wholesale by 11.5% in the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock valued at $7,488,203,000 after buying an additional 773,651 shares in the last quarter. Diamant Asset Management Inc. grew its holdings 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 valued at $672,690,000 after purchasing an additional 6,720,130 shares during the period. Finally, Corient Private Wealth LLC increased its position in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after purchasing an additional 5,472,968 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Costco Wholesale

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 completion of the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

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.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Oppenheimer lifted their target price on shares of 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. BTIG Research reissued a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research note on Friday, May 29th. HC Wainwright restated a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Roth Capital lifted their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. Finally, Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Trading Down 1.2%

NASDAQ COST opened at $928.48 on Thursday. The firm’s 50-day moving average is $944.65 and its two-hundred day moving average is $978.84. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The stock has a market capitalization of $411.76 billion, a P/E ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid 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 of this dividend was Friday, July 24th. Costco Wholesale’s payout ratio is 29.58%.

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.