GAMMA Investing LLC Increases Stake in Costco Wholesale Corporation $COST

GAMMA Investing LLC raised its position in Costco Wholesale Corporation (NASDAQ:COST) by 8.1% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 12,763 shares of the retailer’s stock after acquiring an additional 952 shares during the period. GAMMA Investing LLC’s holdings in Costco Wholesale were worth $11,940,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in COST. Vanguard Group Inc. raised its holdings in Costco Wholesale by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock worth $37,615,889,000 after purchasing an additional 165,349 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock valued at $8,919,573,000 after purchasing an additional 26,690 shares in the last quarter. Morgan Stanley boosted its holdings in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock valued at $8,212,433,000 after purchasing an additional 107,775 shares in the last quarter. Bank of America Corp DE increased its position in Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after purchasing an additional 773,651 shares during the period. Finally, Diamant Asset Management Inc. increased its position in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after purchasing an additional 6,720,130 shares during the period. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $947.85 on Wednesday. The business’s 50 day simple moving average is $952.84 and its 200-day simple moving average is $982.44. The firm has a market capitalization of $420.35 billion, a price-to-earnings ratio of 47.68, a price-to-earnings-growth ratio of 4.61 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 12 month low of $844.06 and a 12 month 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 for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the prior year, the company earned $4.28 EPS. As a group, equities analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be issued a $1.47 dividend. The ex-dividend date of this dividend is Friday, July 24th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is 29.58%.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco is expanding its store footprint with construction underway for a new location near Kuna and Meridian, Idaho. The opening could support future sales, membership growth and regional convenience. Costco construction underway near Kuna border
• Positive Sentiment: The company’s low gasoline prices are designed to attract shoppers and increase warehouse visits. Although fuel itself generates limited profit, the strategy can indirectly lift merchandise sales, memberships and overall customer retention. Costco keeps its gas super cheap for a very specific reason
• Positive Sentiment: Analysts highlighted a 92.2% U.S.-Canada renewal rate, growth in Executive memberships and improving digital retention. These trends reinforce Costco’s recurring-revenue model and suggest customer loyalty remains strong despite changes in membership mix. Costco’s Renewal Trends Point to Lasting Customer Loyalty
• Positive Sentiment: Reported changes aimed at resolving members’ biggest pain points could help Costco protect membership sales and retention, which are central to its profitability. Costco’s changes fix members’ biggest problems
• Neutral Sentiment: Positive attention around a frozen food item highlights Costco’s ability to generate value-oriented consumer engagement, but the product buzz is unlikely to materially affect near-term earnings. One of Costco’s best frozen items
• Negative Sentiment: Costco reportedly agreed to a $14 million settlement involving allegedly misleading “fake urgency” emails. The financial impact appears manageable for a company of Costco’s size, but the matter creates legal, compliance and reputational concerns. Costco’s $14M settlement over fake urgency emails

Insiders Place Their Bets

In other news, Director Kenneth D. Denman sold 885 shares of the firm’s 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 transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.10% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Roth Capital increased their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. TD Cowen reaffirmed a “buy” rating and set a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. UBS Group boosted their target price 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. Finally, Truist Financial upped their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research note on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,059.07.

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.