Sanchez Levi Garrett Acquires New Holdings in Costco Wholesale Corporation $COST

Key Points

• Sanchez Levi Garrett bought 1,655 Costco shares worth approximately $1.55 million in the second quarter, making Costco 0.8% of the fund’s portfolio. Institutional investors collectively own 68.48% of the company.
• Costco reported strong August sales, with net sales up 9.9% year over year and digitally enabled sales rising 17.9%, supporting continued demand and e-commerce momentum.
• Despite broad analyst support and a “Moderate Buy” consensus, Costco’s elevated valuation—around 46 times earnings—along with regulatory scrutiny and a recent insider sale creates potential downside risk.

Sanchez Levi Garrett bought a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 1,655 shares of the retailer's stock, valued at approximately $1,548,000. Costco Wholesale comprises approximately 0.8% of Sanchez Levi Garrett's investment portfolio, making the stock its 14th biggest position.

Other large investors have also recently added to or reduced their stakes in the company. World Investment Advisors increased its stake in shares of Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after purchasing an additional 1,560 shares during the period. Sarasin & Partners LLP grew its holdings in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock valued at $200,372,000 after buying an additional 13,795 shares during the last quarter. Perryman Financial Advisory Inc. AD acquired a new stake in Costco Wholesale in the 4th quarter valued at approximately $9,300,000. Hyperion Asset Management Ltd increased its position in Costco Wholesale by 9.0% in the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock worth $64,325,000 after buying an additional 5,656 shares during the period. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new position in Costco Wholesale in the 4th quarter worth approximately $5,813,000. Institutional investors own 68.48% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco's August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

Costco Wholesale Stock Down 1.0%

NASDAQ COST opened at $915.74 on Friday. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a market capitalization of $406.11 billion, a price-to-earnings ratio of 46.06, a PEG ratio of 3.80 and a beta of 0.86. The stock's 50 day moving average is $943.58 and its two-hundred day moving average is $977.75. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale Dividend Announcement

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

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the company's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

COST has been the subject of several research reports. 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. BTIG Research reiterated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research note on Thursday. TD Cowen reissued a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $1,091.00 price target on shares of Costco Wholesale in a research report on Friday. Finally, Truist Financial boosted their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a report on Friday, May 29th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,056.90.

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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

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