Paradigm Capital Management LLC NV Buys Shares of 577 Costco Wholesale Corporation $COST

Paradigm Capital Management LLC NV bought a new stake in Costco Wholesale Corporation (NASDAQ:COST) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 577 shares of the retailer’s stock, valued at approximately $540,000.

Several other large investors have also modified their holdings of the stock. Front Street Capital Management Inc. acquired a new stake in shares of Costco Wholesale during the second quarter worth $15,039,000. Womack Financial LLC purchased a new position in Costco Wholesale in the 2nd quarter valued at $764,000. Peak Asset Management LLC acquired a new position in Costco Wholesale in the 2nd quarter valued at $3,748,000. Fiduciary Financial Advisors acquired a new position in Costco Wholesale in the 2nd quarter valued at $1,327,000. Finally, Manning & Napier Advisors LLC purchased a new position in Costco Wholesale during the 2nd quarter worth $30,000. 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 Denman sold 885 shares of Costco Wholesale stock in a transaction dated 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 in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.10% of the company’s stock.

Costco Wholesale Trading Down 1.0%

Shares of COST stock opened at $915.74 on Friday. The stock has a market cap of $406.11 billion, a P/E ratio of 46.06, a P/E/G ratio of 3.84 and a beta of 0.86. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The business has a fifty day simple moving average of $943.58 and a 200-day simple moving average of $977.75.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a dividend of $1.47 per share. 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 (DPR) is 29.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on COST shares. Bank of America lifted their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a report on Friday, May 29th. Weiss Ratings cut shares of Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday. Citigroup initiated 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 objective for the company. HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, Truist Financial increased their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research note on Friday, May 29th. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average price target of $1,056.90.

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.