Sterling Investment Advisors Ltd. Trims Stock Holdings in Costco Wholesale Corporation $COST

Sterling Investment Advisors Ltd. lowered its position in shares of Costco Wholesale Corporation (NASDAQ:COST) by 7.7% in the second quarter, according to the company in its most recent filing with the SEC. The firm owned 8,656 shares of the retailer’s stock after selling 727 shares during the quarter. Costco Wholesale comprises about 1.3% of Sterling Investment Advisors Ltd.’s portfolio, making the stock its 17th largest position. Sterling Investment Advisors Ltd.’s holdings in Costco Wholesale were worth $8,098,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Canal Capital Management LLC increased its holdings in shares of Costco Wholesale by 2.2% in the second quarter. Canal Capital Management LLC now owns 899 shares of the retailer’s stock valued at $841,000 after purchasing an additional 19 shares during the period. Erste Asset Management GmbH boosted its position in Costco Wholesale by 42.2% in the second quarter. Erste Asset Management GmbH now owns 23,609 shares of the retailer’s stock valued at $22,297,000 after buying an additional 7,007 shares during the last quarter. Sageworth Trust Co of South Dakota purchased a new stake in Costco Wholesale in the second quarter valued at approximately $422,000. Baldwin Investment Management LLC increased its holdings in Costco Wholesale by 28.4% in the 2nd quarter. Baldwin Investment Management LLC now owns 14,865 shares of the retailer’s stock worth $13,906,000 after buying an additional 3,284 shares during the period. Finally, Mcdonald Partners LLC raised its position in Costco Wholesale by 37.5% during the 2nd quarter. Mcdonald Partners LLC now owns 499 shares of the retailer’s stock worth $467,000 after buying an additional 136 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Trading Down 0.1%

Costco Wholesale stock opened at $961.05 on Friday. The firm has a market cap of $426.21 billion, a PE ratio of 48.34, a P/E/G ratio of 4.57 and a beta of 0.87. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock’s 50 day simple moving average is $949.77 and its two-hundred day simple moving average 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 posted 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 analysts’ expectations of $70.12 billion. During the same period last year, the firm earned $4.28 earnings per share. Analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

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

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value 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 represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.10% of the company’s stock.

More Costco Wholesale News

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?

Analyst Ratings Changes

Several research firms have recently commented on COST. UBS Group upped their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a report on Wednesday, May 20th. 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. Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. TD Cowen reaffirmed a “buy” rating and issued a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, Citigroup began coverage on Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target on the stock. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $1,059.53.

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.