According to its latest SEC filing for the third quarter, Independent Advisor Alliance cut its position in Costco by 2.1%, selling 686 shares and ending the period with 32,229 shares. Costco now represents approximately 0.8% of the Alliance’s overall portfolio, making it their 20th largest holding. At quarter-end, this position carried a reported value of $29.83 million, reflecting the firm’s strategic rebalancing amid broader retail exposures.

Several other institutional investors adjusted their stakes during the same period. Peterson Wealth Services added 72 shares, bringing its total to 13,616, while Fishman Jay A Ltd. increased its holding by 575 shares to 16,888. Silver Oak Securities boosted its position by 49.3%, acquiring 1,248 shares for a total of 3,780. Meanwhile, Permanent Capital Management initiated a new position valued at $874,000. These combined moves leave hedge funds and institutions owning just under 68.5% of outstanding shares, underlining both confidence and selective profit-taking among large investors.

In its December quarter report, Costco delivered revenue of $67.31 billion, an 8.3% year-over-year increase, and earnings per share of $4.34, beating consensus by $0.07. Return on equity stood at 29.35% with a net margin of 2.96%. The company declared a quarterly dividend of $1.30 per share, payable February 13 to shareholders of record January 30, representing an annualized payout of $5.20 and a yield near 0.6%. The dividend payout ratio remains conservative at 27.85%, underscoring management’s commitment to returning cash even as membership fee revenue continues to drive growth.

Wall Street sentiment remains broadly positive, with 21 analysts issuing buy ratings compared to 12 holds and a single sell. Recent notes include an outperform thesis by Telsey Advisory Group and a reaffirmed buy stance from TD Cowen. Average price targets hover around $996, suggesting upside potential of roughly 5% from current levels. Analysts cite the durability of Costco’s membership model and its high-margin private label business as key drivers, while acknowledging near-term pressure from margin headwinds in fuel and freight costs.