Costco Wholesale Corporation $COST Position Cut by TCW Group Inc.

TCW Group Inc. trimmed its stake in Costco Wholesale Corporation (NASDAQ:COST) by 12.2% during the second quarter, according to its most recent disclosure with the SEC. The fund owned 156,163 shares of the retailer’s stock after selling 21,657 shares during the quarter. Costco Wholesale makes up about 1.0% of TCW Group Inc.’s investment portfolio, making the stock its 23rd largest holding. TCW Group Inc.’s holdings in Costco Wholesale were worth $146,086,000 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 lifted its position in Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock valued at $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC grew its position in Costco Wholesale by 13.1% in the 4th 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 during the last quarter. Sivia Capital Partners LLC grew its position in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. increased its stake 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 purchasing an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. increased its stake 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 purchasing an additional 182 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Insiders Place Their Bets

In other news, Director Kenneth D. Denman sold 885 shares of the firm’s stock in a transaction dated 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 transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 0.10% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Mizuho set a $1,100.00 price objective on Costco Wholesale in a research report on Monday, June 1st. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Roth Capital raised their target price on Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. DA Davidson reaffirmed a “neutral” rating and set a $1,000.00 target price on shares of Costco Wholesale in a research note on Thursday, June 4th. Finally, Royal Bank Of Canada started coverage on Costco Wholesale in a research report on Monday, July 13th. They set a “sector perform” rating and a $1,000.00 price target for the company. Twenty-two 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, the company has a consensus rating of “Moderate Buy” and a consensus price target of $1,059.53.

Key Costco Wholesale News

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 Up 1.5%

COST opened at $947.74 on Friday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The stock’s fifty day moving average is $947.14 and its 200-day moving average is $980.95. The company has a market capitalization of $420.30 billion, a PE ratio of 47.67, a P/E/G ratio of 4.51 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST) last announced its earnings results 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 for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the business earned $4.28 EPS. On average, equities analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal 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 issued a $1.47 dividend. 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 dividend payout ratio is presently 29.58%.

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.