M1 Capital Management LLC Invests $604,000 in Costco Wholesale Corporation $COST

M1 Capital Management LLC bought a new stake in Costco Wholesale Corporation (NASDAQ:COST) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 646 shares of the retailer’s stock, valued at approximately $604,000.

A number of other large investors have also added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Costco Wholesale during the fourth quarter worth about $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the fourth quarter valued at about $28,000. C M Bidwell & Associates Ltd. purchased a new position in Costco Wholesale in the second quarter valued at about $28,000. Mcguire Capital Advisors Inc. acquired a new stake in Costco Wholesale during the 4th quarter valued at approximately $28,000. Finally, Entrust Financial LLC purchased a new stake in Costco Wholesale during the 4th quarter worth approximately $31,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale News Summary

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.

Costco Wholesale Stock Performance

Shares of COST stock opened at $928.48 on Thursday. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The firm has a market capitalization of $411.76 billion, a price-to-earnings ratio of 46.70, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87. The business has a 50 day simple moving average of $944.65 and a 200 day simple moving average of $978.84. 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 Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given 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 yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Insider Buying and Selling

In other 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 value of $847,343.25. Following the transaction, 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 can be accessed through this link. Insiders own 0.10% of the company’s stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on COST. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research note on Monday, June 1st. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. The Goldman Sachs Group upped their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Finally, UBS Group increased their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research report on Wednesday, May 20th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,059.53.

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.