Simmons Bank Increases Position in Costco Wholesale Corporation $COST

Simmons Bank boosted its position in Costco Wholesale Corporation (NASDAQ:COST) by 4.5% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 13,298 shares of the retailer’s stock after purchasing an additional 568 shares during the quarter. Simmons Bank’s holdings in Costco Wholesale were worth $12,440,000 at the end of the most recent reporting period.

A number of other large investors have also made changes to their positions in COST. World Investment Advisors increased its holdings in shares of Costco Wholesale by 8.4% during the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after acquiring an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas boosted its stake in Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock worth $121,098,000 after purchasing an additional 27,625 shares in the last quarter. Sarasin & Partners LLP grew its position 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 last quarter. Perryman Financial Advisory Inc. AD purchased a new stake in Costco Wholesale during the 4th quarter worth approximately $9,300,000. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new position in Costco Wholesale during the 4th quarter valued at approximately $5,813,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on COST shares. Truist Financial raised their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a report on Monday, June 1st. Bank of America upped their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Roth Capital raised their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. Finally, Royal Bank Of Canada initiated coverage on Costco Wholesale in a research report on Monday, July 13th. They set a “sector perform” rating and a $1,000.00 price target for the company. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale News Roundup

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with nonprofit insurer SCAN Group to offer limited Costco-branded Medicare Advantage and supplemental plans, initially in select states. The initiative targets Costco’s sizable senior-member base and gives the retailer exposure to the large Medicare market, although the financial contribution is likely to develop gradually. Costco Enters The Medicare Insurance Market
• Positive Sentiment: Costco increased its dividend by 13.1%. The raise signals confidence in cash generation and strengthens the shareholder-return case, though the regular dividend yield remains relatively modest because of COST’s high share price. Costco Just Upped Its Dividend by 13.1%
• Positive Sentiment: Additional growth engines are emerging. Analysts point to Costco’s membership model, Kirkland Signature products, retail media, artificial-intelligence-powered search and pharmacy operations as areas that could support growth beyond warehouse sales. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Product news is likely to have limited stock impact. Costco brought back a popular discontinued item, which may support member engagement but is not material to companywide earnings. Costco Brought Back a Popular Favorite
• Negative Sentiment: Valuation and retail concerns are weighing on the shares. COST trades at a high earnings multiple, leaving less room for execution disappointments. Its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations, while the stock declined more than the broader market in the latest session. Why Costco Fell More Than the Broader Market

Costco Wholesale Stock Performance

COST opened at $933.51 on Friday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The firm has a 50 day moving average of $947.83 and a two-hundred day moving average of $981.19. The firm has a market capitalization of $413.99 billion, a PE ratio of 46.96, a P/E/G ratio of 4.55 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The business had revenue of $70.53 billion during the quarter, compared to analysts’ expectations of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period last year, the company earned $4.28 earnings per share. On average, analysts anticipate that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors 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 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s payout ratio is currently 29.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director directly owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This 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.

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.