Costco Wholesale Corporation $COST Holdings Trimmed by Sepio Capital LP

Key Points

• Sepio Capital cut its Costco position by 24.9% in the third quarter, selling 1,345 shares and retaining 4,051 shares valued at approximately $3.69 million. Institutional investors collectively own 68.48% of Costco.
• Analyst sentiment remains bullish: 25 analysts rate the stock Buy, eight Hold and one Sell, resulting in a “Moderate Buy” consensus and an average price target of $1,086.19.
• Costco recently exceeded quarterly earnings and revenue expectations, reporting $6.75 EPS and $95.72 billion in revenue. Shares traded at $1,003.32, while the company declared a quarterly dividend of $1.47 per share, yielding about 0.6% annually.

Sepio Capital LP decreased its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 24.9% during the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 4,051 shares of the retailer's stock after selling 1,345 shares during the quarter. Sepio Capital LP's holdings in Costco Wholesale were worth $3,688,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of the business. Bank of America Corp DE acquired a new position in Costco Wholesale in the second quarter valued at about $6,781,946,000. Diamant Asset Management Inc. grew its holdings in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the period. State Street Corp raised its stake in Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after buying an additional 5,749,362 shares during the period. Legal & General Group Plc bought a new position in Costco Wholesale during the second quarter worth about $2,362,188,000. Finally, Ascentis Wealth Management LLC grew its position in shares of Costco Wholesale by 103,637.0% in the 2nd quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer's stock valued at $2,549,616,000 after purchasing an additional 2,497,652 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on COST shares. JPMorgan Chase & Co. lowered their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, September 25th. Argus reissued a "buy" rating and issued a $1,230.00 price target on shares of Costco Wholesale in a research note on Monday, September 28th. Mizuho decreased their price objective on Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a report on Friday, September 25th. Evercore restated an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Finally, Bank of America cut their target price on Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating for the company in a research note on Wednesday, September 16th. Twenty-five investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus target price of $1,086.19.

Costco Wholesale Stock Down 1.5%

COST traded down $14.89 during trading on Friday, reaching $1,003.32. The stock had a trading volume of 2,405,591 shares, compared to its average volume of 2,251,754. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock's 50 day moving average is $937.96 and its two-hundred day moving average is $963.21. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a market capitalization of $444.60 billion, a price-to-earnings ratio of 48.33, a P/E/G ratio of 4.35 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.54 by $0.21. The firm had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. Costco Wholesale's quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $5.87 EPS. As a group, analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's payout ratio is presently 28.32%.

Insider Activity

In related news, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the transaction, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Claudine Adamo sold 2,200 shares of the business's stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the transaction, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by company insiders.

More Costco Wholesale News

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

• Positive Sentiment: Analyst support remains strong. CICC initiated coverage with an Outperform rating, while Tigress Financial raised its price target to $1,250. Erste Group also increased its FY2028 EPS estimate to $25.07 from $25.01, above the current-year consensus estimate of $22.70. CICC coverage article Tigress Financial price target article
• Positive Sentiment: Growth and customer engagement remain key positives. Costco’s membership model has delivered substantial long-term shareholder returns, and the company is reportedly using purchasing data to better target high-spending members. REJURAN Cosmetics is also expanding through Costco’s first Beauty Table program, potentially adding traffic and broadening its premium beauty offering. Costco customer spending article REJURAN retail expansion article
• Neutral Sentiment: Long-term growth screens are favorable, and analysts’ average recommendation is equivalent to a Buy. However, these reports largely reiterate existing optimism rather than provide a new earnings catalyst. Zacks growth stock article
• Negative Sentiment: Valuation and competition remain concerns. Costco trades at a high earnings multiple, leaving the stock sensitive to profit-taking or disappointing growth. Kroger is planning major investments and price cuts to win back market share from Costco and Walmart, which could intensify grocery competition and pressure margins. Kroger competition article

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.

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