Sterling Investment Counsel LLC Grows Stake in Costco Wholesale Corporation $COST

Key Points

• Sterling Investment Counsel LLC boosted its stake in Costco by 126.5% in Q4, buying an additional 1,106 shares to hold 1,980 shares worth about $1.768 million.
• Costco raised its quarterly dividend ~13% to $1.47 (annualized $5.88), payable May 15 with a May 1 record date, implying a ~0.6% yield and a payout ratio near 30.6%.
• Costco beat quarterly expectations (EPS $4.58 vs. $4.55; revenue $69.6B vs. $68.96B, +9.2% YoY) and analysts remain generally bullish, with an average "Moderate Buy" rating and a ~$1,046 price target.

Sterling Investment Counsel LLC boosted its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 126.5% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,980 shares of the retailer's stock after purchasing an additional 1,106 shares during the quarter. Sterling Investment Counsel LLC's holdings in Costco Wholesale were worth $1,768,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. Hurley Capital LLC increased 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 purchasing an additional 18 shares during the period. Abich Financial Wealth Management LLC purchased a new position in Costco Wholesale during the 3rd quarter worth $34,000. Collier Financial purchased a new position in Costco Wholesale during the 3rd quarter worth $35,000. AXS Investments LLC purchased a new position in Costco Wholesale during the 3rd quarter worth $36,000. Finally, Imprint Wealth LLC purchased a new position in Costco Wholesale during the 3rd quarter worth $36,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Stock Performance

Shares of COST opened at $999.89 on Friday. The stock has a 50-day moving average of $995.74 and a two-hundred day moving average of $944.84. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,067.08. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The stock has a market cap of $443.60 billion, a P/E ratio of 52.00, a P/E/G ratio of 4.86 and a beta of 0.99.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $68.96 billion. During the same quarter in the previous year, the firm posted $4.02 EPS. The firm's revenue was up 9.2% compared to the same quarter last year. As a group, research analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be paid a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is 30.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Teresa A. Jones sold 850 shares of Costco Wholesale stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the completion of the transaction, the executive vice president owned 4,228 shares in the company, valued at approximately $4,169,907.28. This trade represents a 16.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.10% of the company's stock.

Analyst Ratings Changes

Several analysts have issued reports on COST shares. Northcoast Research set a $1,100.00 target price on Costco Wholesale and gave the company a "buy" rating in a research report on Wednesday, December 24th. The Goldman Sachs Group dropped their target price on Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating on the stock in a research report on Friday, March 6th. Robert W. Baird set a $1,100.00 target price on Costco Wholesale in a research report on Thursday, February 5th. JPMorgan Chase & Co. increased their target price on Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Weiss Ratings raised Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, March 17th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,045.97.

Key Costco Wholesale News

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

• Positive Sentiment: Costco raised its quarterly dividend ~13% to $1.47 (payable May 15; record May 1), a sign of strong cash flow and management confidence that lifted investor sentiment. Costco Raises Its Dividend
• Positive Sentiment: Major banks bumped price targets — JPMorgan raised its PT to $1,110 and Mizuho to $1,100 while keeping bullish ratings, signaling analyst conviction in upside vs. current levels. JPMorgan Adjusts PT Mizuho Adjusts PT
• Positive Sentiment: Operational and sales momentum: Costco reported strong March net sales and recent quarterly results that beat expectations, reinforcing growth and margin resilience. Analysts cite that momentum as part of the bull case alongside the dividend move. Bull Case for Costco
• Positive Sentiment: Product exclusives and in-warehouse surprises — Costco continues to roll out exclusive large-format items and even popular fast-food products that drive foot traffic and impulse buys. These merchandising wins help differentiate membership value. Costco Adds Fast-Food Product Exclusive Aussie Product
• Neutral Sentiment: Checkout and store tech improvements (automated pay stations, AI pricing/markdowns) aim to speed throughput and reduce perishables waste; these are positive long-term but will take time to scale. Automated Pay Stations Grocers Use AI
• Neutral Sentiment: Competitive dynamics: Sam’s Club and BJ’s are making localized gains and Sam’s Club fee moves could reshape pricing among warehouse clubs; this could benefit Costco if it retains perceived value, but it’s an evolving factor. Competitors Gaining Traction Sam's Club Fees
• Negative Sentiment: Fuel sales are elevated (adds revenue/traffic), but analysts warn there’s a caveat around margins and sensitivity to gas price swings; persistent high fuel/traffic volatility could dampen same-store trends. Gas Sales Catch

Costco Wholesale Company 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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