Sumitomo Mitsui Trust Group Inc. Has $1.01 Billion Stock Position in Costco Wholesale Corporation $COST

Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST) by 2.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,080,484 shares of the retailer’s stock after purchasing an additional 30,491 shares during the quarter. Costco Wholesale accounts for approximately 0.6% of Sumitomo Mitsui Trust Group Inc.’s holdings, making the stock its 28th biggest position. Sumitomo Mitsui Trust Group Inc. owned 0.24% of Costco Wholesale worth $1,010,760,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of COST. World Investment Advisors lifted its holdings in shares of Costco Wholesale by 8.4% during the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after acquiring an additional 1,560 shares during the period. Teacher Retirement System of Texas grew its holdings in shares of Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock worth $121,098,000 after purchasing an additional 27,625 shares during the last quarter. Sarasin & Partners LLP increased its position in shares of Costco Wholesale by 6.9% during the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after purchasing an additional 13,795 shares in the last quarter. Perryman Financial Advisory Inc. AD acquired a new stake in shares of Costco Wholesale during the 4th quarter worth about $9,300,000. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new position in Costco Wholesale during the 4th quarter valued at about $5,813,000. 68.48% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on COST shares. DA Davidson reaffirmed a “neutral” rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research note on Thursday, June 4th. JPMorgan Chase & Co. cut their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research note on Thursday, July 9th. TD Cowen reissued a “buy” rating and issued a $1,175.00 target price on shares of Costco Wholesale in a report on Wednesday, June 3rd. The Goldman Sachs Group increased their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Finally, HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco plans to offer co-branded Medicare Advantage plans with nonprofit insurer SCAN Group, initially in two states pending regulatory approval. The offerings may eventually include pharmacy, vision, hearing and over-the-counter benefits, potentially increasing member engagement and monetization. Costco launching Medicare Advantage plans with SCAN Group
• Positive Sentiment: Analysts and market commentary continue to highlight Costco’s Executive membership growth, digital sales conversion and rising fee income as evidence that the company is extracting more value from its membership base. Costco also retains broadly favorable analyst coverage, with a consensus view around “Moderate Buy.” Can Costco Stock Reach New Highs in Member Monetization?
• Neutral Sentiment: Costco brought back a popular Kirkland product discontinued two years ago. The move may support customer goodwill and traffic, but it is unlikely to materially affect earnings or valuation. Costco discontinued this Kirkland favorite 2 years ago. Now it’s back
• Negative Sentiment: Despite a 121% five-year total return, Costco’s valuation remains a concern. Its elevated earnings multiple leaves less room for disappointment, particularly after the latest quarterly EPS slightly missed estimates, even though revenue exceeded expectations. Costco Stock Looks Fully Priced Despite 121% Returns And Earnings Questions

Costco Wholesale Price Performance

Shares of COST stock opened at $961.35 on Wednesday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm’s 50 day moving average is $949.20 and its 200-day moving average is $981.20. The firm has a market capitalization of $426.34 billion, a price-to-earnings ratio of 48.36, a PEG ratio of 4.57 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST) last issued 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 net margin of 3.01% and a return on equity of 28.04%. The company 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. Sell-side analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Insiders Place Their Bets

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

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.