Zhang Financial LLC Purchases 2,960 Shares of Costco Wholesale Corporation $COST

Zhang Financial LLC raised its position in shares of Costco Wholesale Corporation (NASDAQ:COST) by 133.6% in the 2nd quarter, HoldingsChannel.com reports. The institutional investor owned 5,175 shares of the retailer’s stock after acquiring an additional 2,960 shares during the period. Zhang Financial LLC’s holdings in Costco Wholesale were worth $4,842,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale in the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale in the 4th quarter valued at $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the fourth quarter worth $28,000. Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the fourth quarter worth $31,000. Finally, Joseph Group Capital Management acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $33,000. Institutional investors own 68.48% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Royal Bank Of Canada assumed coverage on shares of Costco Wholesale in a research note on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 target price on the stock. The Goldman Sachs Group boosted their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $1,120.00 price objective on shares of Costco Wholesale in a report on Thursday, August 6th. HC Wainwright reaffirmed a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Citigroup initiated coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price for the company. 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, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $1,059.53.

Costco Wholesale Stock Performance

Shares of COST stock opened at $956.99 on Thursday. 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 company has a market capitalization of $424.41 billion, a P/E ratio of 48.14, a price-to-earnings-growth ratio of 4.57 and a beta of 0.87. The company’s 50 day moving average price is $948.67 and its two-hundred day moving average price is $981.23. 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). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same period in the prior year, the business earned $4.28 EPS. On average, analysts expect that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid 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 dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Key Stories Impacting Costco Wholesale

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

Insider Activity 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 transaction 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 legal filing with the SEC, which is available through this hyperlink. Insiders own 0.10% of the company’s stock.

About Costco Wholesale

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.