WealthCare Asset Management LLC Acquires New Stake in Costco Wholesale Corporation $COST

WealthCare Asset Management LLC acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 1,160 shares of the retailer’s stock, valued at approximately $1,085,000.

A number of other large investors also recently bought and sold shares of COST. World Investment Advisors increased its holdings in Costco Wholesale by 8.4% during the 4th 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 grew 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 acquiring an additional 27,625 shares during the period. Sarasin & Partners LLP increased its stake in Costco Wholesale by 6.9% in the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after purchasing an additional 13,795 shares during the last quarter. Perryman Financial Advisory Inc. AD acquired a new position in shares of Costco Wholesale during the 4th quarter valued at about $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 fourth quarter worth approximately $5,813,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale News Roundup

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

• Positive Sentiment: New Medicare Advantage offering could expand Costco’s membership value proposition. Costco is partnering with nonprofit SCAN Health Plan to offer co-branded Medicare Advantage and supplemental plans, initially in two states pending regulatory approval. The broader rollout could include pharmacy, vision, hearing and over-the-counter benefits, potentially strengthening member retention and creating an additional revenue stream. Costco’s Next Big Bulk Item: Medicare Advantage
• Positive Sentiment: Growing cash reserves may support another special dividend. Commentary suggests Costco’s accumulating cash could lead to a substantial shareholder payout this fall. While no dividend has been announced, the possibility may provide support for the stock and reinforce Costco’s shareholder-return appeal. Costco’s Cash Pile Keeps Building
• Neutral Sentiment: Costco’s merchandising strategy continues to drive member engagement. The company’s practice of rotating or discontinuing popular products can frustrate shoppers, but limited availability and surprise product returns may encourage more frequent warehouse visits and support the treasure-hunt shopping experience. Costco keeps discontinuing popular products
• Negative Sentiment: Valuation leaves limited room for execution missteps. COST trades at roughly 48 times earnings, with a PEG ratio above 4, and analysts have questioned whether its strong multiyear performance is already reflected in the share price. The company’s latest quarterly EPS slightly missed consensus, although revenue exceeded expectations, adding to investor focus on earnings growth. Costco Stock Looks Fully Priced

Wall Street Analyst Weigh In

Several equities research analysts have commented on COST shares. BTIG Research restated a “buy” rating and set a $1,125.00 price target on shares of Costco Wholesale in a research note on Friday, May 29th. Oppenheimer increased their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a research report on Tuesday, May 19th. Citigroup initiated coverage on Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price on the stock. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, DA Davidson reissued a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a report on Thursday, June 4th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,059.53.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director directly 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is owned by company insiders.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $956.99 on Thursday. The firm’s 50 day moving average is $948.67 and its two-hundred day moving average is $981.23. 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 firm has a market capitalization of $424.41 billion, a P/E ratio of 48.14, a PEG ratio of 4.57 and a beta of 0.87. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week 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 business had revenue of $70.53 billion during 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 period in the previous year, the company posted $4.28 EPS. Analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

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