JLB & Associates Inc. Makes New Investment in Costco Wholesale Corporation $COST

JLB & Associates Inc. acquired a new position in shares of Costco Wholesale Corporation (NASDAQ:COST) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 1,677 shares of the retailer’s stock, valued at approximately $1,569,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale during the 4th quarter valued at about $27,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Costco Wholesale in the fourth quarter worth approximately $28,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale in the fourth quarter valued at approximately $28,000. Manning & Napier Advisors LLC grew its holdings in 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 purchasing an additional 30 shares during the period. Finally, Entrust Financial LLC purchased a new stake in Costco Wholesale in the fourth quarter valued at approximately $31,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

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

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on COST shares. Sanford C. Bernstein boosted their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a research note on Friday, May 29th. Roth Capital lifted their target price on Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a report on Friday, May 29th. UBS Group boosted their price target on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research report on Wednesday, May 20th. 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. Finally, TD Cowen restated a “buy” rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Costco Wholesale currently has an average rating of “Moderate Buy” and an average target price of $1,059.53.

Costco Wholesale Price Performance

Shares of COST stock opened at $945.47 on Friday. The firm has a market cap of $419.30 billion, a P/E ratio of 47.56, a P/E/G ratio of 4.50 and a beta of 0.87. 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 1-year low of $844.06 and a 1-year high of $1,096.50. The firm has a fifty day moving average of $945.80 and a two-hundred day moving average of $979.92.

Costco Wholesale (NASDAQ:COST) last issued 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). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter last year, the company posted $4.28 EPS. As a group, research analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s dividend payout ratio is 29.58%.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the business’s 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 sale, the director owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company 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.