QRG Capital Management Inc. Raises Stake in Costco Wholesale Corporation $COST

QRG Capital Management Inc. boosted its position in shares of Costco Wholesale Corporation (NASDAQ:COST) by 42.0% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 117,027 shares of the retailer’s stock after acquiring an additional 34,608 shares during the period. Costco Wholesale comprises 0.8% of QRG Capital Management Inc.’s investment portfolio, making the stock its 22nd biggest holding. QRG Capital Management Inc.’s holdings in Costco Wholesale were worth $109,475,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of COST. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale during the second quarter worth $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Costco Wholesale during the 4th quarter worth about $27,000. Burk Holdings LLC purchased a new stake in Costco Wholesale during the 2nd quarter worth about $30,000. Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale during the 2nd quarter worth about $30,000. Finally, Lifetime Wealth Management P.C. acquired a new position in shares of Costco Wholesale during the 4th quarter worth about $28,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Analysts remain constructive: BTIG reaffirmed a Buy rating and a $1,125 price target, citing Costco’s durable traffic, membership and sales growth. BTIG reiterates Buy rating and $1,125 price target
• Positive Sentiment: Q4 expectations remain strong, with one preview forecasting approximately $94 billion in sales and $6.59 in earnings per share. Robust traffic, engaged members, digital momentum and membership-fee income could support the results. Costco Q4 preview
• Positive Sentiment: Costco’s nationwide same-day delivery rollout through DoorDash expands member convenience and could increase order frequency, digital engagement and sales reach. However, delivery economics will need to be demonstrated. Costco nationwide same-day delivery
• Neutral Sentiment: Higher gasoline prices may lift Costco’s fuel revenue and traffic, but they can also pressure consumers’ discretionary budgets. Investors will watch the net effect in the earnings report. Costco Q4 preview and gasoline prices
• Neutral Sentiment: Options markets imply elevated volatility around earnings, increasing the likelihood of a substantial post-report move. A potential special dividend is also a topic of investor speculation, not a confirmed announcement. Expected Costco earnings move
• Negative Sentiment: The benefit from Costco’s 2024 membership-fee increase may be largely reflected in results after Thursday’s report. Because membership fees contribute roughly half of operating income, slower fee-income growth could weigh on future earnings momentum. Costco membership fee boost
• Negative Sentiment: Investors remain concerned about Costco’s premium valuation, margin pressure and macroeconomic uncertainty. Commentary that the stock is “acting poorly” reflects weakened sentiment ahead of the earnings catalyst. Buy, hold or sell Costco before earnings

Analyst Ratings Changes

COST has been the topic of several research analyst reports. TD Cowen reissued a “buy” rating and set a $1,175.00 target price on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Evercore reaffirmed an “outperform” rating on shares of Costco Wholesale in a report on Tuesday. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Weiss Ratings cut shares of Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 2nd. Finally, Mizuho set a $1,100.00 price objective 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 assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,052.65.

Costco Wholesale Stock Performance

Shares of NASDAQ COST traded up $5.29 during trading hours on Wednesday, reaching $904.70. The stock had a trading volume of 2,279,427 shares, compared to its average volume of 2,182,632. The firm has a 50-day moving average of $935.54 and a 200-day moving average of $969.45. The firm has a market cap of $401.22 billion, a price-to-earnings ratio of 45.51, a PEG ratio of 3.77 and a beta of 0.86. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $1.47 dividend. This represents a $5.88 annualized dividend 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 presently 29.58%.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.