Costco Wholesale Corporation $COST Holdings Lowered by RW Investment Management LLC

Key Points

• RW Investment Management cut its Costco stake by 17.3% in Q3 to 4,794 shares valued at $4,437,000, making Costco about 0.5% of the firm's portfolio and its 16th-largest holding.
• Costco beat Q2 estimates (EPS $4.58 vs. $4.55; revenue $69.60B vs. $68.96B) with membership growth and in-warehouse initiatives supporting sales, and analysts hold a consensus "Moderate Buy" with an average price target of $1,039.13.
• Legal and insider risks: proposed class-action suits over tariff refunds create headline and potential liability risk, while insiders sold roughly 7,645 shares (~$7.05M) in the last quarter.

RW Investment Management LLC decreased its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 17.3% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 4,794 shares of the retailer's stock after selling 1,000 shares during the quarter. Costco Wholesale accounts for about 0.5% of RW Investment Management LLC's investment portfolio, making the stock its 16th largest holding. RW Investment Management LLC's holdings in Costco Wholesale were worth $4,437,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently bought and sold shares of COST. Norges Bank purchased a new stake in Costco Wholesale during the second quarter valued at about $5,692,035,000. Laurel Wealth Advisors LLC increased its position in shares of Costco Wholesale by 96,316.6% in the second quarter. Laurel Wealth Advisors LLC now owns 1,378,758 shares of the retailer's stock worth $1,364,888,000 after acquiring an additional 1,377,328 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Costco Wholesale by 1.7% during the second quarter. Vanguard Group Inc. now owns 43,356,271 shares of the retailer's stock valued at $42,920,107,000 after acquiring an additional 711,560 shares during the period. Invesco Ltd. raised its holdings in shares of Costco Wholesale by 9.8% during the second quarter. Invesco Ltd. now owns 4,291,557 shares of the retailer's stock valued at $4,248,384,000 after acquiring an additional 383,887 shares during the period. Finally, Symphony Financial Ltd. Co. lifted its position in shares of Costco Wholesale by 15,055.5% in the 2nd quarter. Symphony Financial Ltd. Co. now owns 320,994 shares of the retailer's stock valued at $317,722,000 after acquiring an additional 318,876 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Price Performance

NASDAQ COST opened at $1,008.43 on Friday. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $447.61 billion, a PE ratio of 52.44, a price-to-earnings-growth ratio of 5.07 and a beta of 1.01. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,067.08. The company has a 50 day moving average price of $975.52 and a two-hundred day moving average price of $937.17.

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

Costco Wholesale Announces Dividend

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

Wall Street Analysts Forecast Growth

COST has been the topic of several research analyst reports. Jefferies Financial Group reissued a "buy" rating and issued a $1,050.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. UBS Group set a $1,175.00 price target on shares of Costco Wholesale in a research report on Friday, March 6th. Truist Financial raised their price target on shares of Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a report on Friday, March 6th. Wells Fargo & Company boosted their price objective on shares of Costco Wholesale from $900.00 to $950.00 and gave the company an "equal weight" rating in a research report on Thursday, February 5th. Finally, DA Davidson reiterated a "neutral" rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday, March 6th. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,039.13.

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

Insider Buying and Selling at Costco Wholesale

In related news, EVP James C. Klauer sold 1,500 shares of the stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares in the company, valued at $42,101,943. This represents a 3.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Teresa A. Jones sold 850 shares of Costco Wholesale stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total value of $838,321.00. Following the completion of the transaction, the executive vice president directly owned 4,228 shares in the company, valued at approximately $4,169,907.28. This represents a 16.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 7,645 shares of company stock worth $7,049,302 in the last quarter. 0.10% of the stock is owned by corporate 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.

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