Costco Wholesale Corporation $COST Shares Acquired by Smith Group Asset Management LLC

Smith Group Asset Management LLC lifted its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST) by 7.0% in the second quarter, HoldingsChannel.com reports. The firm owned 66,244 shares of the retailer’s stock after acquiring an additional 4,349 shares during the quarter. Costco Wholesale accounts for about 2.5% of Smith Group Asset Management LLC’s investment portfolio, making the stock its 13th largest holding. Smith Group Asset Management LLC’s holdings in Costco Wholesale were worth $61,969,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vontobel Holding Ltd. raised its holdings in Costco Wholesale by 81.2% in the 2nd quarter. Vontobel Holding Ltd. now owns 69,986 shares of the retailer’s stock valued at $65,470,000 after buying an additional 31,363 shares during the period. Wallace Advisory Group LLC boosted its stake in Costco Wholesale by 20.2% during the second quarter. Wallace Advisory Group LLC now owns 256 shares of the retailer’s stock worth $240,000 after buying an additional 43 shares during the period. Hardworking Capital Advisors LLC boosted its stake in Costco Wholesale by 1.9% during the second quarter. Hardworking Capital Advisors LLC now owns 1,022 shares of the retailer’s stock worth $956,000 after buying an additional 19 shares during the period. Carrera Capital Advisors increased its position in shares of Costco Wholesale by 13.4% during the second quarter. Carrera Capital Advisors now owns 1,362 shares of the retailer’s stock valued at $1,274,000 after acquiring an additional 161 shares during the last quarter. Finally, Fire Capital Management LLC increased its position in shares of Costco Wholesale by 14.8% during the second quarter. Fire Capital Management LLC now owns 2,170 shares of the retailer’s stock valued at $2,030,000 after acquiring an additional 280 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Trading Up 1.5%

Shares of COST stock opened at $947.74 on Friday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The stock has a market capitalization of $420.30 billion, a P/E ratio of 47.67, a price-to-earnings-growth ratio of 4.44 and a beta of 0.87. The company has a 50 day moving average price of $947.14 and a 200 day moving average price of $980.95. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The business had revenue of $70.53 billion for the quarter, compared to analyst estimates 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 last year, the company earned $4.28 earnings per share. Equities research analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The business 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 of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on COST. The Goldman Sachs Group upped their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. 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 raised their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. Finally, JPMorgan Chase & Co. dropped their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research note on Thursday, July 9th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,059.53.

Costco Wholesale News Summary

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
• Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
• Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
• Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
• Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
• Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

Insider Activity

In other 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 value of $847,343.25. Following the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.10% of the company’s stock.

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.