Bank of Nova Scotia Takes Position in Costco Wholesale Corporation $COST

Key Points

• Bank of Nova Scotia acquired 274,678 Costco shares worth approximately $257 million, giving it a 0.06% stake. Several other institutional investors also initiated positions, and institutions collectively own 68.48% of the stock.
• Analysts remain broadly positive, with 21 Buy ratings, 12 Holds and one Sell; Costco has a consensus “Moderate Buy” rating and an average price target of $1,059.53.
• Costco’s stock opened at $925.41, while the company pays a quarterly dividend of $1.47 per share, equivalent to a $5.88 annualized payout and a 0.6% yield.

Bank of Nova Scotia acquired a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 274,678 shares of the retailer's stock, valued at approximately $256,954,000. Bank of Nova Scotia owned about 0.06% of Costco Wholesale at the end of the most recent quarter.

Several other large investors have also modified their holdings of COST. Kirtland Hills Capital Management LLC acquired a new position in Costco Wholesale in the 2nd quarter valued at $2,204,000. Compass Financial Management LLC acquired a new position in Costco Wholesale during the 2nd quarter worth $4,502,000. Elevation Point Wealth Partners LLC bought a new stake in Costco Wholesale during the second quarter valued at about $16,837,000. Alta Advisers Ltd bought a new stake in Costco Wholesale during the second quarter valued at about $1,558,000. Finally, Daiichi Life Insurance Co. Ltd. acquired a new stake in shares of Costco Wholesale in the second quarter valued at about $24,459,000. 68.48% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on COST shares. Mizuho set a $1,100.00 price objective on Costco Wholesale in a research note on Monday, June 1st. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. BTIG Research reiterated a "buy" rating and set a $1,125.00 price target on shares of Costco Wholesale in a report on Thursday. Finally, Bank of America increased their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Twenty-one analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and an average target price of $1,059.53.

Costco Wholesale Stock Down 0.3%

COST stock opened at $925.41 on Friday. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company has a market cap of $410.40 billion, a PE ratio of 46.55, a price-to-earnings-growth ratio of 3.85 and a beta of 0.86. The business's 50-day simple moving average is $944.31 and its 200 day simple moving average is $978.18.

Costco Wholesale Announces Dividend

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

Costco Wholesale News Roundup

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

• Positive Sentiment: Strong August and fiscal-year sales: Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for August and the fiscal year, and digitally enabled sales rose 17.9% for the month and 20.9% for the year. Costco August Sales Results
• Positive Sentiment: Analysts remain constructive: BTIG reaffirmed its Buy rating with a $1,125 price target, while Bank of America maintained a Buy rating and a $1,200 target. These targets imply substantial upside and suggest analysts believe Costco’s membership model and sales momentum support its premium valuation. BTIG Costco Rating
• Neutral Sentiment: Mixed analyst signal: DA Davidson reaffirmed a Neutral rating but lifted its price target to $1,000, indicating limited conviction even while acknowledging potential appreciation.
• Neutral Sentiment: Long-term optimism: Commentary argues Costco could eventually surpass Home Depot and Lowe’s in market value if it sustains membership growth, warehouse expansion and consistent execution. This is a long-range thesis rather than a near-term catalyst. Costco Long-Term Valuation Forecast
• Negative Sentiment: DOJ beef-pricing investigation: The Justice Department is requesting records from Costco and other major retailers regarding beef prices, costs, margins and purchasing strategies. The inquiry creates potential legal, regulatory and operational risks, although no wrongdoing has been established. DOJ Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The abrupt ending of the online Costco Next marketplace disappointed some members and raises questions about the company’s digital strategy, though the direct financial effect appears limited. Costco Next Shutdown

Insider Buying and Selling at Costco Wholesale

In other news, Director Kenneth Denman sold 885 shares of the business's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.10% of the company's stock.

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.

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