Costco Wholesale Corporation $COST Shares Sold by Jennison Associates LLC

Jennison Associates LLC reduced its position in Costco Wholesale Corporation (NASDAQ:COST) by 6.3% in the 2nd quarter, Holdings Channel reports. The fund owned 2,166,050 shares of the retailer’s stock after selling 146,390 shares during the period. Costco Wholesale makes up about 1.2% of Jennison Associates LLC’s investment portfolio, making the stock its 19th biggest position. Jennison Associates LLC’s holdings in Costco Wholesale were worth $2,026,275,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Fire Capital Management LLC lifted its stake in shares of Costco Wholesale by 14.8% during the 2nd quarter. Fire Capital Management LLC now owns 2,170 shares of the retailer’s stock worth $2,030,000 after purchasing an additional 280 shares during the period. Ranch Capital Advisors Inc. grew its position in shares of Costco Wholesale by 11.4% in the second quarter. Ranch Capital Advisors Inc. now owns 999 shares of the retailer’s stock valued at $935,000 after purchasing an additional 102 shares during the period. Van Strum & Towne Inc. grew its position in shares of Costco Wholesale by 4.9% in the second quarter. Van Strum & Towne Inc. now owns 679 shares of the retailer’s stock valued at $635,000 after purchasing an additional 32 shares during the period. Firestone Capital Management increased its stake in Costco Wholesale by 2.7% in the second quarter. Firestone Capital Management now owns 756 shares of the retailer’s stock valued at $708,000 after purchasing an additional 20 shares during the last quarter. Finally, Fourth Dimension Wealth LLC increased its stake in Costco Wholesale by 74.3% in the second quarter. Fourth Dimension Wealth LLC now owns 772 shares of the retailer’s stock valued at $723,000 after purchasing an additional 329 shares during 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 SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
• Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
• Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
• Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
• Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
• Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $947.74 on Friday. The business has a 50-day moving average of $947.14 and a two-hundred day moving average of $980.95. The firm has a market capitalization of $420.30 billion, a PE ratio of 47.67, a P/E/G ratio of 4.44 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 data on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 firm earned $4.28 earnings per share. As a group, research analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently declared 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. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s payout ratio is 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s 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 directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.10% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Oppenheimer lifted their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a report on Tuesday, May 19th. JPMorgan Chase & Co. decreased their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. HC Wainwright restated a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Roth Capital upped their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Finally, TD Cowen reaffirmed a “buy” rating and set a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Twenty-two 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. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,059.53.

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.