Strategic Advisors LLC Reduces Position in Costco Wholesale Corporation $COST

Key Points

• Strategic Advisors LLC cut its Costco stake by 43.1% in the second quarter, selling 3,259 shares and retaining 4,302 shares valued at approximately $4.03 million. Costco represented 0.8% of the fund’s portfolio.
• Institutional investors own 68.48% of Costco’s shares, while director Kenneth Denman sold 885 shares for about $847,000; insiders own just 0.10% of the company.
• Costco trades at a premium valuation, with a P/E ratio of 45.40, while analysts maintain a “Moderate Buy” consensus and an average price target of $1,056.03. The company pays a $1.47 quarterly dividend, equivalent to a 0.7% yield.

Strategic Advisors LLC trimmed its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 43.1% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,302 shares of the retailer's stock after selling 3,259 shares during the quarter. Costco Wholesale makes up 0.8% of Strategic Advisors LLC's portfolio, making the stock its 25th biggest holding. Strategic Advisors LLC's holdings in Costco Wholesale were worth $4,025,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also made changes to their positions in the company. Brighton Jones LLC lifted its holdings in shares of Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after acquiring an additional 2,172 shares during the period. Revolve Wealth Partners LLC boosted its holdings in shares of Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after buying an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. grew its stake in shares of Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after buying an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. increased its holdings in shares of Costco Wholesale by 2.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after buying an additional 182 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 0.10% of the company's stock.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Analyst upgrade and expansion support the growth outlook. Freedom Broker upgraded Costco from “hold” to “buy” and assigned a $1,030 price target, implying meaningful upside. Separately, Costco plans to open 14 warehouses in the U.S. and Canada before year-end, which could expand membership, sales and long-term earnings. Freedom Broker upgrade and Costco expansion reports Costco warehouse expansion article
• Positive Sentiment: Seasonal merchandising remains a membership benefit. Costco is adding a popular seasonal item to its lineup, reinforcing its strategy of offering limited-time and value-oriented products that can drive store traffic and encourage member purchases. Costco seasonal merchandise article
• Neutral Sentiment: Labor practices highlight Costco’s employee-retention advantage. A report about a meat cutter earning $32 per hour with benefits and job security underscores Costco’s reputation for relatively strong employee compensation. That may support service quality and retention, although higher labor costs could pressure margins over time. Costco employee compensation article
• Neutral Sentiment: Return-product resale operations provide limited incremental value. Reports that Costco sends some returned merchandise to liquidation auctions reveal a secondary channel for recovering value, but the financial impact appears too small to materially change the investment case. Costco returns and liquidation article
• Negative Sentiment: Costco reportedly shut down an online marketplace service. The abrupt closure raises questions about e-commerce execution and could disappoint investors seeking faster digital growth, even if the move ultimately reflects strategic streamlining. Costco online marketplace closure article
• Negative Sentiment: Valuation and competitive concerns are weighing on sentiment. Commentary questioning whether Costco has lost some of its competitive edge, along with comparisons to lower-priced dollar stores, adds pressure to an already expensive stock. The recent underperformance makes investors less willing to pay a premium multiple without stronger growth. Costco competitive edge commentary

Costco Wholesale Price Performance

COST stock opened at $902.60 on Thursday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The stock's 50 day moving average is $942.01 and its two-hundred day moving average is $975.58. The company has a market capitalization of $400.29 billion, a PE ratio of 45.40, a P/E/G ratio of 3.79 and a beta of 0.86.

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 dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.7%. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Analyst Ratings Changes

A number of equities analysts have recently commented on COST shares. Citigroup started coverage on Costco Wholesale in a report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price objective on the stock. BTIG Research reiterated a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a research note on Thursday, September 3rd. Freedom Broker raised shares of Costco Wholesale from a "hold" rating to a "buy" rating and set a $1,030.00 price objective for the company in a research report on Tuesday. Sanford C. Bernstein set a $1,144.00 price objective on Costco Wholesale in a research report on Friday, September 4th. Finally, DA Davidson restated a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research note on Thursday, September 3rd. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $1,056.03.

About Costco Wholesale

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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