Sterling Investment Advisors Ltd. Cuts Stock Position in Costco Wholesale Corporation $COST

Sterling Investment Advisors Ltd. trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST) by 7.7% in the 2nd quarter, HoldingsChannel reports. The institutional investor owned 8,656 shares of the retailer’s stock after selling 727 shares during the period. Costco Wholesale accounts for approximately 1.3% of Sterling Investment Advisors Ltd.’s holdings, making the stock its 17th largest holding. Sterling Investment Advisors Ltd.’s holdings in Costco Wholesale were worth $8,098,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Diamant Asset Management Inc. increased its holdings in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares in the last quarter. Norges Bank purchased a new position in Costco Wholesale during the fourth quarter valued at $5,195,415,000. Corient Private Wealth LLC lifted its holdings in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after purchasing an additional 5,472,968 shares in the last quarter. Ascentis Wealth Management LLC grew its position in shares of Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock valued at $2,549,616,000 after purchasing an additional 2,497,652 shares during the period. Finally, Cardano Risk Management B.V. grew its position in shares of Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock valued at $1,539,346,000 after purchasing an additional 1,607,833 shares during the period. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred 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 sale, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.10% of the company’s stock.

Analyst Ratings Changes

A number of research firms have recently commented on COST. Weiss Ratings cut shares of Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. decreased their price target on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Truist Financial lifted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. Royal Bank Of Canada began coverage on Costco Wholesale in a research note on Monday, July 13th. They set a “sector perform” rating and a $1,000.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. Twenty-two equities 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 stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,059.53.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Market-share gains in Canada: Costco is now Canada’s second-largest grocery store chain, indicating continued customer adoption and potential for international growth. Costco Wholesale Is Now Canada’s Second Largest Grocery Store Chain
• Positive Sentiment: Resilient value proposition: Analysts continue to highlight Costco’s ability to attract and retain members through low prices, including inexpensive gasoline. This value positioning could support demand as consumers remain selective. Retail Stocks Poised for an Earnings Beat
• Positive Sentiment: Expansion remains a growth driver: Seven additional U.S. locations are planned for 2026, adding warehouse capacity and supporting membership and sales growth over time. Seven New Costco Locations Coming in 2026
• Neutral Sentiment: Tariff-refund uncertainty: Costco says it will return tariff-related refunds to customers, but the timing and mechanics remain unclear. The policy may reinforce customer goodwill, although refunds could create temporary administrative and cash-flow considerations. Costco Tariff Refunds
• Neutral Sentiment: Operational and competitive updates: Costco will close U.S. warehouses on September 7 for Labor Day, while rival BJ’s continues expanding. These developments are unlikely to materially change near-term earnings but highlight ongoing competitive dynamics. Costco Labor Day Closure
• Negative Sentiment: Valuation remains a concern: Despite a recent pullback, Costco’s roughly 48-times P/E ratio leaves limited room for execution misses. Moderating sales growth and potential margin pressure could keep investors cautious, particularly after the latest quarter narrowly missed EPS expectations. Is Costco Stock Worth Buying Now or Still Too Pricey to Touch?

Costco Wholesale Stock Performance

NASDAQ:COST opened at $961.05 on Friday. The company has a market cap of $426.21 billion, a P/E ratio of 48.34, a P/E/G ratio of 4.57 and a beta of 0.87. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company’s 50-day moving average price is $949.77 and its 200-day moving average price is $981.29. 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 (NASDAQ:COST) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The business had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the prior year, the company posted $4.28 EPS. On average, sell-side analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

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