Bank of America Corp DE Invests $6.78 Billion in Costco Wholesale Corporation $COST

Key Points

• Bank of America purchased 7.25 million Costco shares worth approximately $6.78 billion, giving it a 1.63% stake in the retailer. Institutional investors and hedge funds collectively own 68.48% of Costco.
• Wall Street remains broadly positive, with 22 analysts rating Costco a Buy and an average price target of $1,056.03; however, some analysts maintain neutral ratings and cite the stock’s elevated valuation.
• Costco shares opened at $904.77, below their 50-day and 200-day moving averages, while the company paid a quarterly dividend of $1.47, equivalent to an annualized yield of approximately 0.6%.

Bank of America Corp DE purchased a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 7,249,774 shares of the retailer's stock, valued at approximately $6,781,946,000. Bank of America Corp DE owned about 1.63% of Costco Wholesale at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the stock. Palisade Asset Management LLC lifted its holdings in shares of Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after purchasing an additional 10 shares during the last quarter. Graybill Wealth Management LTD. boosted its position in shares of Costco Wholesale by 0.3% in the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after purchasing an additional 10 shares during the period. Wealth Effects LLC grew its stake in Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after buying an additional 10 shares during the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. grew its stake in Costco Wholesale by 1.8% during the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock worth $549,000 after buying an additional 10 shares during the last quarter. Finally, First National Bank of Hutchinson increased its position in Costco Wholesale by 0.9% during the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock worth $1,094,000 after buying an additional 10 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. JPMorgan Chase & Co. reduced their price target on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Citigroup started coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price objective on the stock. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. The Goldman Sachs Group upped their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a report on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $1,091.00 target price on shares of Costco Wholesale in a research note on Friday, September 4th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,056.03.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of Costco Wholesale 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 sale, the director owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco’s recent August and fourth-quarter fiscal 2026 sales results supported an analyst upgrade from “hold” to “buy,” accompanied by a $1,030 price target. The data were viewed as evidence of resilient consumer demand and improving visibility into retail trends. Analyst upgrade following sales reports
• Positive Sentiment: Several analysts maintain substantially higher targets, including targets of $1,100 to $1,200, arguing that Costco’s membership model, recurring sales, and execution could support further valuation upside. Costco price prediction
• Positive Sentiment: Coverage highlights Costco’s ability to compete with Walmart and Amazon, while planned warehouse openings—including a reported $42 million Texas development and additional U.S. and Canadian locations—could expand its membership and sales base. Costco competition and growth
• Positive Sentiment: An Accenture survey suggests consumers may begin holiday shopping unusually early and spend more than in 2025, a potentially favorable backdrop for Costco’s seasonal merchandise and grocery sales. Holiday shopping outlook
• Neutral Sentiment: Brokerage coverage remains favorable overall, with Costco carrying an average “Moderate Buy” rating, but the stock’s elevated valuation means continued earnings and sales growth may be required to justify further gains. Costco brokerage rating
• Neutral Sentiment: New warehouse projects and relocations should support long-term expansion, although local traffic concerns around one planned location could delay or complicate development. Lee’s Summit Costco development
• Negative Sentiment: Costco shares have closed lower for eight consecutive sessions, raising concerns about a technical or valuation-driven correction despite strong operating results.
• Negative Sentiment: Recent insider activity consisted of two sales and no purchases, while reports that Costco is rationing motor oil point to potential product-availability and supply-chain pressures.

Costco Wholesale Stock Performance

Shares of COST opened at $904.77 on Monday. The stock has a market capitalization of $401.25 billion, a P/E ratio of 45.51, a P/E/G ratio of 3.77 and a beta of 0.86. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company's fifty day moving average is $940.09 and its two-hundred day moving average is $974.42.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors 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 yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

About Costco Wholesale

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.

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