Madison Asset Management LLC Makes New Investment in Costco Wholesale Corporation $COST

Madison Asset Management LLC purchased a new position in shares of Costco Wholesale Corporation (NASDAQ:COST) in the 2nd quarter, Holdings Channel reports. The firm purchased 33,457 shares of the retailer’s stock, valued at approximately $31,298,000.

Several other hedge funds also recently modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale in the 4th quarter worth about $27,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale during the fourth quarter valued at about $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the fourth quarter worth about $28,000. Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the fourth quarter worth about $31,000. Finally, Manning & Napier Advisors LLC increased its stake in shares of Costco Wholesale by 750.0% in the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock valued at $34,000 after buying an additional 30 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Stock Performance

Shares of COST stock opened at $945.47 on Monday. The stock has a market capitalization of $419.30 billion, a PE ratio of 47.56, a PEG ratio of 4.50 and a beta of 0.87. The business’s 50 day simple moving average is $945.80 and its 200 day simple moving average is $979.80. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale Corporation has a one year low of $844.06 and a one 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 (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the previous year, the business posted $4.28 EPS. As a group, research analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is 29.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Delivery expansion could boost engagement: Costco is now offering delivery for customizable sheet cakes and party platters, improving convenience and potentially encouraging larger, higher-margin event-related purchases. Costco delivery for cakes and party platters
• Positive Sentiment: Physical expansion continues: Costco opened its first warehouse in Celina, Texas, one of the nation’s fastest-growing cities. New locations can add membership revenue and sales over time, although the financial contribution will develop gradually. Costco opens Celina store
• Positive Sentiment: Long-term investor appeal remains intact: Commentary highlights Costco’s strong competitive moat, membership economics and potential for dividend growth. Its partnership with SCAN Health Plan to offer Medicare Advantage and supplemental plans also provides a potential new customer-engagement channel. Costco Medicare partnership
• Neutral Sentiment: Pricing strategy is both a strength and a challenge: Costco continues to hold its iconic rotisserie chicken at $4.99 by controlling production costs. The price reinforces customer loyalty, but inflation and supply costs could pressure margins if the company maintains the price indefinitely. Costco rotisserie chicken and inflation
• Negative Sentiment: Legal and valuation concerns are weighing on sentiment: Costco is refunding certain tariff duties while contesting a related class-action lawsuit, creating uncertainty over costs and potential liabilities. Separately, the stock’s high earnings multiple and position below its 200-day moving average leave it vulnerable to profit-taking; its latest quarterly EPS narrowly missed estimates despite a revenue beat. Costco tariff refunds and lawsuit

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction 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 $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a report on Monday, June 1st. Weiss Ratings lowered shares of Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, June 23rd. DA Davidson restated a “neutral” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research report on Thursday, June 4th. Citigroup started coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target for the company. 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 note on Wednesday, May 20th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,059.53.

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.