Employees Retirement System of Texas Sells 6,200 Shares of Costco Wholesale Corporation $COST

Key Points

• Employees Retirement System of Texas cut its Costco stake by 5.9% (sold 6,200 shares), leaving 98,349 shares worth about $91.04 million — roughly 0.7% of the fund's portfolio and its 29th largest holding.
• Q2 results showed Costco beat estimates (EPS $4.58 vs. $4.55) with revenue of $69.6B, up 9.2% year‑over‑year, and analysts hold a consensus "Moderate Buy" rating with an average price target near $1,039.
• A proposed nationwide class action over tariff refunds creates legal uncertainty and potential liability that could pressure Costco's low‑margin business model.

Employees Retirement System of Texas cut its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 5.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 98,349 shares of the retailer's stock after selling 6,200 shares during the period. Costco Wholesale accounts for about 0.7% of Employees Retirement System of Texas' investment portfolio, making the stock its 29th biggest position. Employees Retirement System of Texas' holdings in Costco Wholesale were worth $91,035,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also modified their holdings of the stock. Hurley Capital LLC lifted its holdings in Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after buying an additional 18 shares in the last quarter. Abich Financial Wealth Management LLC bought a new stake in shares of Costco Wholesale during the third quarter worth $34,000. Collier Financial bought a new stake in shares of Costco Wholesale during the third quarter worth $35,000. AXS Investments LLC acquired a new position in shares of Costco Wholesale during the third quarter valued at $36,000. Finally, Redmont Wealth Advisors LLC bought a new position in Costco Wholesale in the third quarter valued at about $40,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $1,003.23 on Friday. The firm's 50 day simple moving average is $972.44 and its 200 day simple moving average is $936.70. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,067.08. The company has a market capitalization of $445.30 billion, a price-to-earnings ratio of 52.17, a P/E/G ratio of 5.01 and a beta of 1.01. 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 data on Thursday, March 5th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter in the previous year, the company earned $4.02 earnings per share. The business's revenue for the quarter was up 9.2% on a year-over-year basis. As a group, sell-side analysts forecast that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Dividend Announcement

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

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Q2 results and commentary showed continued momentum — revenue and EPS beat estimates, management cited membership/traffic gains and price management that supported sales. Costco Reports $68.24B FQ2 Sales
• Positive Sentiment: Analyst support is lifting sentiment — BMO and other shops have raised targets or reiterated Outperform/Buy ratings after the quarter, helping offset headline risk. BMO Sees Costco as Stable Bet
• Positive Sentiment: Operational tailwinds: new warehouse openings, expanded in‑warehouse experiences and viral product drops (e.g., Off‑White hoodies) are driving foot traffic and membership engagement. Off‑White Hoodies Spark Frenzy Liberty Hill Costco Opening
• Neutral Sentiment: Daiwa and other firms tweaked targets (some higher) while keeping conservative ratings in some cases — a modest vote of confidence but not uniformly bullish. Daiwa Adjusts Price Target
• Neutral Sentiment: Insider activity: an EVP disclosed the sale of ~730 shares — small relative to Costco’s market cap and unlikely to drive the move on its own. Executive Form 4
• Negative Sentiment: Legal overhang: a proposed nationwide class action alleges Costco must pass along tariff refunds to customers after the Supreme Court voided certain Trump‑era tariffs — plaintiffs seek broad relief and this creates uncertainty over potential liabilities, refunds, and reputational risk. Reuters: Costco customers sue MSN: Costco Sued Over Tariffs
• Negative Sentiment: Negative framing in some outlets suggests the suits could pressure Costco’s low‑margin model if rulings force refunds or changes to pricing practices; outcome and exposure remain uncertain and litigation could be a headline risk. 24/7 Wall St: Profit Model Threatened
• Negative Sentiment: Macro/commodity risks (Gulf tensions, oil spike) could weigh on consumer sentiment and fuel costs — a potential headwind for retailers if sustained. Heard on the Street: Gulf Worries

Insiders Place Their Bets

In related news, EVP Russell D. Miller sold 1,500 shares of the company's stock in a transaction on Friday, January 9th. The shares were sold at an average price of $916.32, for a total value of $1,374,480.00. Following the completion of the sale, the executive vice president owned 8,240 shares in the company, valued at $7,550,476.80. This represents a 15.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Teresa A. Jones sold 850 shares of the firm's stock in a transaction 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 sale, the executive vice president directly owned 4,228 shares in the company, valued at $4,169,907.28. The trade was a 16.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 7,645 shares of company stock worth $7,049,302 over the last 90 days. 0.10% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on 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. Evercore set a $1,100.00 price target on shares of Costco Wholesale in a research report on Monday, March 2nd. Roth Mkm restated a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Daiwa Securities Group raised their price objective on shares of Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday. Finally, Northcoast Research set a $1,100.00 target price on shares of Costco Wholesale and gave the company a "buy" rating in a research report on Wednesday, December 24th. Twenty-two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $1,039.13.

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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