Sequoia Financial Advisors LLC Cuts Stake in Costco Wholesale Corporation $COST

Key Points

• Sequoia Financial Advisors cut its Costco stake by 2.5% in the second quarter, selling 2,442 shares and retaining 94,833 shares valued at approximately $88.7 million. Institutional investors still own 68.48% of the company.
• Analysts remain broadly positive, with Costco carrying a “Moderate Buy” consensus rating and an average price target of $1,056.03; 22 analysts rate it a Buy, 12 a Hold and one a Sell.
• Costco’s growth outlook is supported by plans to open 10 warehouses and strong e-commerce sales, but higher fuel costs and inflationary pressures may weigh on near-term margins and earnings quality.

Sequoia Financial Advisors LLC reduced its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.5% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 94,833 shares of the retailer's stock after selling 2,442 shares during the period. Sequoia Financial Advisors LLC's holdings in Costco Wholesale were worth $88,714,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Sarasin & Partners LLP increased its holdings in shares of Costco Wholesale by 6.9% in the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after buying an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $9,300,000. Nissay Asset Management Corp Japan boosted its stake in shares of Costco Wholesale by 4.1% during the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer's stock valued at $148,193,000 after purchasing an additional 6,200 shares during the period. Hyperion Asset Management Ltd grew its holdings in shares of Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock worth $64,325,000 after purchasing an additional 5,656 shares during the last quarter. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new position in shares of Costco Wholesale in the fourth quarter worth approximately $5,813,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Costco Wholesale

In related news, Director Kenneth Denman sold 885 shares of the company's stock in a transaction that occurred 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 owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

COST has been the topic of a number of analyst reports. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price objective on the stock. Oppenheimer upped their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Royal Bank Of Canada restated a "sector perform" rating on shares of Costco Wholesale in a research note on Tuesday. Finally, UBS Group lifted their price target on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. 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 data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $1,056.03.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco plans to open 10 new warehouses over the next two months, supporting long-term membership growth, sales expansion and geographic reach. Costco has 10 new stores opening in the next two months
• Positive Sentiment: E-commerce sales increased 17.9% in August and 20.9% for fiscal 2026, indicating that digital operations are becoming a meaningful additional growth engine alongside Costco’s warehouses. Costco's E-commerce Momentum Keeps Its Growth Engine Running
• Neutral Sentiment: Costco is scheduled to report fiscal fourth-quarter results later this month, making upcoming sales, membership and margin trends important near-term catalysts. Should You Buy Costco Stock Before Sept. 24?
• Negative Sentiment: Costco nearly doubled the price of a 10-quart case of Kirkland Signature motor oil to $57.99 and limited purchases amid an oil-supply crunch. The move highlights inflationary pressure across consumer goods and could weigh on customer sentiment, even though higher prices may protect some revenue. Costco hikes motor oil prices and puts limits on how much members can buy
• Negative Sentiment: RBC expects higher fuel costs to pressure Costco’s core gross margin in the fourth quarter. Tariff refunds may offset much of the impact, but the mixed outlook reinforces concerns about near-term earnings quality. Costco Gross Margin Pressure From Higher Fuel Costs Likely to be Offset by Tariff Refunds, RBC Says

Costco Wholesale Trading Down 1.9%

NASDAQ:COST opened at $901.35 on Wednesday. The firm has a market capitalization of $399.73 billion, a P/E ratio of 45.34, a PEG ratio of 3.83 and a beta of 0.86. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company's 50-day simple moving average is $938.54 and its 200 day simple moving average is $973.21.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's payout ratio is currently 29.58%.

Costco Wholesale Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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