M1 Capital Management LLC Makes New Investment in Costco Wholesale Corporation $COST

M1 Capital Management LLC acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST) in the 2nd quarter, Holdings Channel reports. The firm acquired 646 shares of the retailer’s stock, valued at approximately $604,000.

Several other hedge funds and other institutional investors have also modified their holdings of COST. World Investment Advisors boosted its stake in Costco Wholesale by 8.4% during the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock worth $15,835,000 after buying an additional 1,560 shares in the last quarter. Sarasin & Partners LLP increased its holdings in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after buying an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD acquired a new position in shares of Costco Wholesale in the 4th quarter valued at $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new position in shares of Costco Wholesale in the 4th quarter valued at $5,813,000. Finally, Hyperion Asset Management Ltd lifted its holdings in shares of Costco Wholesale by 9.0% during the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after acquiring an additional 5,656 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Insider Buying and Selling

In related news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale 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 sale, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.10% of the company’s stock.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report.
• Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice
• Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Roth Capital upped their target price on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research note on Friday, May 29th. TD Cowen restated a “buy” rating and set a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. BTIG Research reaffirmed a “buy” rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Friday, May 29th. Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, The Goldman Sachs Group increased their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Twenty-two 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. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,059.53.

Costco Wholesale Price Performance

Shares of COST stock opened at $928.48 on Thursday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm’s 50 day moving average is $944.65 and its 200-day moving average is $978.84. The firm has a market capitalization of $411.76 billion, a price-to-earnings ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87. 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 Announces Dividend

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 yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s payout ratio is currently 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.