Payden & Rygel Raises Stock Position in Costco Wholesale Corporation $COST

Payden & Rygel raised its stake in Costco Wholesale Corporation (NASDAQ:COST) by 1,006.7% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 9,960 shares of the retailer’s stock after buying an additional 9,060 shares during the period. Payden & Rygel’s holdings in Costco Wholesale were worth $9,317,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Brighton Jones LLC raised its holdings in Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC boosted its position in Costco Wholesale by 13.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after purchasing an additional 130 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in Costco Wholesale by 4.5% in the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock valued at $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. increased its position in shares of Costco Wholesale by 1.1% in the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock valued at $2,089,000 after buying an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. increased its position in shares of Costco Wholesale by 2.2% in the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer’s stock valued at $8,416,000 after buying an additional 182 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with nonprofit insurer SCAN Group to offer limited Costco-branded Medicare Advantage and supplemental plans, initially in select states. The initiative targets Costco’s sizable senior-member base and gives the retailer exposure to the large Medicare market, although the financial contribution is likely to develop gradually. Costco Enters The Medicare Insurance Market
• Positive Sentiment: Costco increased its dividend by 13.1%. The raise signals confidence in cash generation and strengthens the shareholder-return case, though the regular dividend yield remains relatively modest because of COST’s high share price. Costco Just Upped Its Dividend by 13.1%
• Positive Sentiment: Additional growth engines are emerging. Analysts point to Costco’s membership model, Kirkland Signature products, retail media, artificial-intelligence-powered search and pharmacy operations as areas that could support growth beyond warehouse sales. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Product news is likely to have limited stock impact. Costco brought back a popular discontinued item, which may support member engagement but is not material to companywide earnings. Costco Brought Back a Popular Favorite
• Negative Sentiment: Valuation and retail concerns are weighing on the shares. COST trades at a high earnings multiple, leaving less room for execution disappointments. Its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations, while the stock declined more than the broader market in the latest session. Why Costco Fell More Than the Broader Market

Costco Wholesale Stock Performance

NASDAQ:COST opened at $933.51 on Friday. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a market cap of $413.99 billion, a PE ratio of 46.96, a P/E/G ratio of 4.55 and a beta of 0.87. The firm has a 50 day simple moving average of $947.83 and a 200-day simple moving average of $981.19. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last announced 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 firm 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 business posted $4.28 EPS. On average, equities analysts expect that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid 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 currently 29.58%.

Insider Activity

In other 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 value 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. 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 the SEC website. 0.10% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

COST has been the topic of several recent research reports. BTIG Research reiterated a “buy” rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a research report on Friday, May 29th. TD Cowen restated a “buy” rating and set a $1,175.00 target price on shares of Costco Wholesale in a report on Wednesday, June 3rd. Truist Financial lifted their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research report on Friday, May 29th. Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $1,120.00 price objective on shares of Costco Wholesale in a research note on Thursday, August 6th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus price target 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.