Cannell & Spears LLC Trims Stake in Costco Wholesale Corporation $COST

Key Points

• Cannell & Spears LLC trimmed its Costco stake by 10.4% in Q3, selling 6,093 shares and finishing the quarter with 52,311 shares worth $48.42 million (about 0.9% of the firm's portfolio and its 27th-largest holding).
• Costco beat Q2 expectations, reporting $4.58 EPS versus $4.55 expected and $69.6 billion in revenue (up 9.2% year-over-year), with analysts forecasting roughly 18.03 EPS for the fiscal year.
• Legal overhang: multiple proposed class-action suits seeking tariff refunds introduce potential liability, administrative burden and elevated headline risk for the company until resolved.

Cannell & Spears LLC cut its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 10.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 52,311 shares of the retailer's stock after selling 6,093 shares during the quarter. Costco Wholesale makes up approximately 0.9% of Cannell & Spears LLC's investment portfolio, making the stock its 27th largest position. Cannell & Spears LLC's holdings in Costco Wholesale were worth $48,421,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Norges Bank acquired a new position in shares of Costco Wholesale in the 2nd quarter valued at $5,692,035,000. Laurel Wealth Advisors LLC boosted its holdings in Costco Wholesale by 96,316.6% during the second quarter. Laurel Wealth Advisors LLC now owns 1,378,758 shares of the retailer's stock worth $1,364,888,000 after buying an additional 1,377,328 shares in the last quarter. Amundi grew its position in Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after buying an additional 986,182 shares during the period. Vanguard Group Inc. increased its holdings in Costco Wholesale by 1.7% in the second quarter. Vanguard Group Inc. now owns 43,356,271 shares of the retailer's stock valued at $42,920,107,000 after buying an additional 711,560 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in Costco Wholesale by 9.8% in the second quarter. Invesco Ltd. now owns 4,291,557 shares of the retailer's stock valued at $4,248,384,000 after buying an additional 383,887 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Price Performance

Shares of Costco Wholesale stock opened at $1,008.43 on Friday. The stock has a market capitalization of $447.61 billion, a P/E ratio of 52.44, a PEG ratio of 5.10 and a beta of 1.01. The business has a 50 day simple moving average of $975.52 and a two-hundred day simple moving average of $937.14. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,067.08. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results 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. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The firm had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same period in the previous year, the company posted $4.02 earnings per share. The business's revenue was up 9.2% on a year-over-year basis. As a group, analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were paid a dividend of $1.30 per share. 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 27.04%.

Costco Wholesale News Roundup

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

Analyst Ratings Changes

COST has been the topic of several recent analyst reports. Roth Mkm reissued a "sell" rating on shares of Costco Wholesale in a research note on Wednesday, February 4th. UBS Group set a $1,175.00 price target on Costco Wholesale in a research note on Friday, March 6th. Raymond James Financial upped their price target 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. Rothschild & Co Redburn increased their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Finally, Oppenheimer raised their price objective on Costco Wholesale from $1,050.00 to $1,100.00 and gave the company an "outperform" rating in a report on Thursday, February 5th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and an average price target of $1,039.13.

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP James C. Klauer sold 1,500 shares of the company's stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the sale, the executive vice president directly owned 44,837 shares of the company's stock, valued at approximately $42,101,943. This represents a 3.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 7,645 shares of company stock valued at $7,049,302. 0.10% of the stock is owned by company insiders.

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.