Davis Capital Management Makes New Investment in Costco Wholesale Corporation $COST

Davis Capital Management acquired a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST) in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 1,476 shares of the retailer’s stock, valued at approximately $1,366,000.

Several other large investors have also modified their holdings of COST. Bulwark Capital Corp acquired a new position in shares of Costco Wholesale in the 2nd quarter valued at $25,000. Soundwatch Capital LLC raised its position in shares of Costco Wholesale by 635.7% in the 2nd quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer’s stock worth $25,000 after buying an additional 2,206 shares during the period. LFA Lugano Financial Advisors SA acquired a new position in Costco Wholesale in the second quarter valued at $31,000. Anderson Financial Strategies LLC grew its position in Costco Wholesale by 900.0% during the first quarter. Anderson Financial Strategies LLC now owns 40 shares of the retailer’s stock valued at $38,000 after acquiring an additional 36 shares during the period. Finally, Financial Connections Group Inc. increased its stake in Costco Wholesale by 975.0% during the second quarter. Financial Connections Group Inc. now owns 43 shares of the retailer’s stock worth $42,000 after acquiring an additional 39 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Telsey Advisory Group reiterated an “outperform” rating and set a $1,100 price target on COST, signaling material upside vs. current levels and giving investors a bullish anchor. Benzinga
• Positive Sentiment: MarketBeat includes Costco among five high‑quality stocks to own in 2026, highlighting Costco’s “premium defensive” positioning, steady membership income, and mid‑teens historical EPS compounding—support for longer‑term investor demand. Beyond the Santa Claus Rally—5 Quality Stocks to Buy in 2026
• Positive Sentiment: Local expansion: Costco is taking steps to open two new Ontario locations, which supports longer‑run membership and sales growth in Canada. Costco takes steps to open two new locations in Ontario
• Neutral Sentiment: Consumer‑facing coverage (holiday hours, product roundups, “3 things to know” pieces) reminds retail customers and investors of Costco’s brand strength but is unlikely to move the stock materially on its own. 3 Things to Know About Costco Stock Before You Buy
• Neutral Sentiment: Practical holiday coverage (e.g., New Year’s Day hours) and product arrival lists attract shoppers but are not catalysts for the stock. Is Costco open or closed on New Year’s Day 2026?
• Negative Sentiment: Analysts expect December comps to slow (consensus ~2.2% same‑store sales), and a December sales update due Jan. 7 could confirm softer near‑term trends—this is the primary immediate downside risk for the stock. Is Costco Cooling Off? Why December Sales Growth Might Look Slower
• Negative Sentiment: Insider selling: EVP Javier Polit sold significant blocks of shares in late‑December (SEC Form 4 filings), which can weigh on sentiment because investors sometimes read large insider sales as profit taking. SEC Form 4 – Javier Polit
• Negative Sentiment: Valuation sensitivity: COST trades at an elevated multiple (P/E mid‑40s), so the stock is vulnerable to downside if growth decelerates or macro conditions deteriorate. Market data & valuation
• Negative Sentiment: Operational/shrink risk: recent reports of cargo thefts tied to food shipments underscore logistics exposures that could add cost or cause isolated supply disruptions. Oysters, crab and $400,000 worth of lobster meat stolen in New England

Analyst Upgrades and Downgrades

COST has been the topic of several research analyst reports. Wells Fargo & Company reduced their price objective on Costco Wholesale from $1,000.00 to $900.00 and set an “equal weight” rating on the stock in a research note on Friday, December 19th. Wolfe Research began coverage on shares of Costco Wholesale in a research report on Thursday, September 18th. They set a “peer perform” rating on the stock. Evercore ISI decreased their price objective on shares of Costco Wholesale from $1,060.00 to $1,025.00 and set an “outperform” rating for the company in a research note on Friday, September 26th. Daiwa Capital Markets cut their target price on shares of Costco Wholesale from $947.00 to $917.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 16th. Finally, Mizuho reduced their target price on shares of Costco Wholesale from $975.00 to $950.00 and set a “neutral” rating on the stock in a report on Thursday, October 9th. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $992.08.

Insiders Place Their Bets

In related news, insider Tiffany Marie Barbre sold 1,239 shares of the stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $934.62, for a total value of $1,157,994.18. Following the completion of the transaction, the insider owned 5,155 shares of the company’s stock, valued at approximately $4,817,966.10. This represents a 19.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP William Richard Wilcox sold 2,400 shares of Costco Wholesale stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $930.13, for a total value of $2,232,312.00. Following the sale, the executive vice president owned 2,000 shares in the company, valued at $1,860,260. This represents a 54.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 8,946 shares of company stock worth $8,175,048. 0.10% of the stock is owned by insiders.

Costco Wholesale Trading Down 0.9%

NASDAQ COST opened at $854.50 on Friday. The company’s fifty day simple moving average is $894.79 and its 200-day simple moving average is $934.60. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,078.23. The company has a current ratio of 1.04, a quick ratio of 0.53 and a debt-to-equity ratio of 0.19. The stock has a market cap of $379.29 billion, a P/E ratio of 45.77, a PEG ratio of 5.12 and a beta of 1.02.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The business had revenue of $67.31 billion during the quarter, compared to analyst estimates of $67.03 billion. During the same period last year, the business earned $4.04 EPS. The business’s revenue was up 8.3% on a year-over-year basis. Equities research analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, November 14th. Stockholders of record on Friday, October 31st were given a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, October 31st. Costco Wholesale’s payout ratio is presently 27.85%.

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.