Bank of Nova Scotia Lowers Holdings in Costco Wholesale Corporation $COST

Key Points

• Bank of Nova Scotia trimmed its Costco stake by 16.5% in Q3, selling 34,403 shares and leaving it with 173,637 shares valued at about $160.7 million.
• Insiders have sold 7,645 shares (~$7.05 million) over the last 90 days and now own only 0.10% of the stock, suggesting limited insider accumulation.
• While Costco posted a recent quarterly beat and holds a "Moderate Buy" analyst consensus, multiple proposed class‑action tariff‑refund lawsuits create potential liability and elevated headline risk.

Bank of Nova Scotia lowered its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 16.5% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 173,637 shares of the retailer's stock after selling 34,403 shares during the quarter. Bank of Nova Scotia's holdings in Costco Wholesale were worth $160,722,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Soundwatch Capital LLC grew its position in shares of Costco Wholesale by 635.7% during the 2nd quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer's stock worth $25,000 after buying an additional 2,206 shares in the last quarter. Hurley Capital LLC raised its holdings in shares of Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after acquiring an additional 18 shares in the last quarter. Abich Financial Wealth Management LLC bought a new stake in shares of Costco Wholesale in the third quarter valued at about $34,000. Collier Financial purchased a new stake in Costco Wholesale in the third quarter worth about $35,000. Finally, AXS Investments LLC purchased a new stake in Costco Wholesale in the third quarter worth about $36,000. 68.48% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, EVP Russell D. Miller sold 1,500 shares of the company's stock in a transaction on Friday, January 9th. The stock was sold at an average price of $916.32, for a total transaction of $1,374,480.00. Following the transaction, the executive vice president directly owned 8,240 shares of the company's stock, valued at approximately $7,550,476.80. This represents a 15.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Claudine Adamo sold 730 shares of the stock in a transaction on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 7,645 shares of company stock valued at $7,049,302. 0.10% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of research analysts have commented on COST shares. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research report on Monday, December 22nd. Bank of America initiated coverage on shares of Costco Wholesale in a research report on Friday, February 27th. They issued a "buy" rating and a $1,185.00 price target for the company. Sanford C. Bernstein reissued an "outperform" rating and set a $1,155.00 price objective on shares of Costco Wholesale in a report on Monday, February 9th. Robert W. Baird set a $1,100.00 price objective on shares of Costco Wholesale in a research note on Thursday, February 5th. Finally, Raymond James Financial upped their target price on Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $1,039.13.

Costco Wholesale Stock Performance

COST stock opened at $1,008.43 on Friday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,067.08. The firm has a market cap of $447.61 billion, a price-to-earnings ratio of 52.44, a PEG ratio of 5.10 and a beta of 1.01. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The firm has a 50-day simple moving average of $975.52 and a two-hundred day simple moving average of $937.14.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company's quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.02 EPS. On average, equities analysts forecast that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were issued a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, January 30th. Costco Wholesale's payout ratio is currently 27.04%.

Costco Wholesale News Summary

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

• Positive Sentiment: Q2 beat and membership strength: Costco reported stronger-than-expected FQ2 results (revenue and EPS beats) and management highlighted membership growth and traffic as key drivers, underpinning confidence in recurring fee income and sales momentum. Costco Reports $68.24B FQ2 Sales
• Positive Sentiment: Membership mix and premium sign‑ups: Executive membership growth (near 40M members, +~9%) supports higher-margin recurring fee income and may sustain revenue per member. This is a structural tailwind for margins and cash flow. Is a $130 Costco executive membership the new VIP status?
• Positive Sentiment: In‑warehouse innovation and product drops: Expanded in‑warehouse experiences, curated product drops (e.g., fashion/brand collaborations) and new assortments (including third‑party brands like Hiboy e‑bikes) are helping traffic and impulse sales. Costco Expands In‑Warehouse Experiences Hiboy C1 E‑Bike Lands at Costco
• Neutral Sentiment: Digital growth and traffic resilience: Management says digital sales and e‑commerce expansion remain contributors to growth, but macro headwinds (e.g., energy-driven pressure on discretionary budgets) add uncertainty to near‑term sales cadence. Costco Says Shoppers Are Still Spending Rising gas prices could offset tax refunds
• Neutral Sentiment: Insider sale: An EVP disclosed a sale of ~730 shares; the size is immaterial relative to Costco’s market cap and does not signal a clear change in insider confidence. Executive Form 4
• Negative Sentiment: Tariff‑refund lawsuits create legal overhang: Multiple proposed class‑action suits allege Costco must pass along refunds to customers after the Supreme Court struck down certain Trump‑era tariffs; plaintiffs seek substantial recoveries and class status, introducing potential liability, administrative burden and PR risk until resolved. Reuters: Costco customers sue
• Negative Sentiment: Complex legal landscape: Coverage notes the situation is “messy” — Costco has also pursued government action to recover tariff amounts, but parallel suits against the company could keep volatility and headline risk elevated until legal outcomes and any government refunds are clarified. Barron's: Tariff refunds are getting messy

Costco Wholesale Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.