Retirement Systems of Alabama Cuts Stock Position in Costco Wholesale Corporation $COST

Key Points

• Retirement Systems of Alabama trimmed its Costco stake by 0.5% in the second quarter, selling 1,059 shares and retaining 193,386 shares valued at approximately $180.9 million. Institutional investors and hedge funds collectively own 68.48% of the company.
• Costco reported quarterly EPS of $4.93, narrowly missing the $4.94 consensus, while revenue of $70.53 billion exceeded estimates. The stock traded near $961, with a market capitalization of $426.2 billion and a relatively high P/E ratio of 48.34.
• The company declared a quarterly dividend of $1.47, equivalent to an annualized $5.88 and a 0.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,059.53, although Costco’s elevated valuation remains a concern.

Retirement Systems of Alabama decreased its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 0.5% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 193,386 shares of the retailer's stock after selling 1,059 shares during the period. Retirement Systems of Alabama's holdings in Costco Wholesale were worth $180,907,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Costco Wholesale by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock valued at $37,615,889,000 after purchasing an additional 165,349 shares during the period. Geode Capital Management LLC increased its stake in Costco Wholesale by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after buying an additional 26,690 shares during the period. Morgan Stanley lifted its holdings in Costco Wholesale by 1.1% during the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock worth $8,212,433,000 after buying an additional 107,775 shares in the last quarter. Bank of America Corp DE lifted its holdings in Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after buying an additional 773,651 shares in the last quarter. Finally, Diamant Asset Management Inc. boosted its position in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Trading Down 0.0%

NASDAQ COST opened at $961.05 on Monday. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The firm has a 50 day moving average of $949.77 and a two-hundred day moving average of $981.32. 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 stock has a market capitalization of $426.21 billion, a PE ratio of 48.34, a price-to-earnings-growth ratio of 4.57 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter in the previous year, the business posted $4.28 earnings per share. As a group, research analysts expect that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a $1.47 dividend. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company's stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on COST shares. Truist Financial boosted their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Royal Bank Of Canada assumed coverage on Costco Wholesale in a research note on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 price objective on the stock. BTIG Research reiterated a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Sanford C. Bernstein boosted their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Finally, HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

Key Costco Wholesale News

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

• Positive Sentiment: Market-share gains in Canada: Costco is now Canada’s second-largest grocery store chain, indicating continued customer adoption and potential for international growth. Costco Wholesale Is Now Canada’s Second Largest Grocery Store Chain
• Positive Sentiment: Resilient value proposition: Analysts continue to highlight Costco’s ability to attract and retain members through low prices, including inexpensive gasoline. This value positioning could support demand as consumers remain selective. Retail Stocks Poised for an Earnings Beat
• Positive Sentiment: Expansion remains a growth driver: Seven additional U.S. locations are planned for 2026, adding warehouse capacity and supporting membership and sales growth over time. Seven New Costco Locations Coming in 2026
• Neutral Sentiment: Tariff-refund uncertainty: Costco says it will return tariff-related refunds to customers, but the timing and mechanics remain unclear. The policy may reinforce customer goodwill, although refunds could create temporary administrative and cash-flow considerations. Costco Tariff Refunds
• Neutral Sentiment: Operational and competitive updates: Costco will close U.S. warehouses on September 7 for Labor Day, while rival BJ’s continues expanding. These developments are unlikely to materially change near-term earnings but highlight ongoing competitive dynamics. Costco Labor Day Closure
• Negative Sentiment: Valuation remains a concern: Despite a recent pullback, Costco’s roughly 48-times P/E ratio leaves limited room for execution misses. Moderating sales growth and potential margin pressure could keep investors cautious, particularly after the latest quarter narrowly missed EPS expectations. Is Costco Stock Worth Buying Now or Still Too Pricey to Touch?

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source