Sepio Capital 13F: Cuts Costco Wholesale (COST) Stake by $1.2M
Key Points
- Sepio Capital cut its Costco Wholesale Corporation holdings by 24.9%, dropping 1,345 shares to finish with 4,051 shares valued at about $3.7 million.
- Costco Wholesale Corporation generated $303.2 billion in trailing-twelve-month revenue with a 3.0% net profit margin.
- Wall Street maintains a buy consensus on Costco Wholesale Corporation with a mean price target of $1,067.59.
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Sepio Capital reduced its holdings in Costco Wholesale Corporation COST by 24.9%, selling 1,345 shares during the period. The move was revealed in a Form 13F filing with the U.S. Securities and Exchange Commission on October 22, 2026.
COST
Costco Wholesale Corporation
What Changed in Sepio Capital's Costco Position
Sepio Capital trimmed its investment in Costco Wholesale Corporation, dropping from a previous total of 5,396 shares down to 4,051 shares. The remaining stake had a reported value of $3,688,428 at the time of the filing. Costco closed at $1,018.21 on the day of the report.
Other Institutional Activity in Costco
Other major funds adjusted their positions around the same time. True North Advisors grew its holdings by 4,717 shares, ending with 15,487 shares worth about $14.1 million. Perigon Wealth Management trimmed its position by 3,187 shares to end with 19,070 shares valued at about $17.4 million. Ami Asset Management reduced its stake by 687 shares, finishing with 21,074 shares worth about $19.2 million. Livforsakringsbolaget Skandia, Omsesidigt cut its holdings by 3,250 shares to wrap up with 1,621 shares worth about $1.5 million. PensionDanmark Pensionsforsikringsaktieselskab added 3,779 shares to hold a total of 92,731 shares valued at about $84.4 million.
Costco Wholesale Corporation Stock Up 2.4%
Costco shares recently traded around $1,018.44. The stock trades above its 50-day moving average of $936.66 and above its 200-day moving average of $968.10.
Recent Earnings
Costco brought in $303.2 billion in trailing-twelve-month revenue with $20.76 in earnings per share over the same period. The company posted a net profit margin of 3.0% and a return on equity of 28.4%. The next quarterly earnings report is scheduled for December 10, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 analysts raised price targets.
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EPS & revenue
EPS missed estimates by 1.9%. Revenue missed estimates by 2.3%.
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Profit surprise
EBITDA missed by 5 percent. Operating income missed by 5 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
3 target raises.
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Earnings quality
Positive free cash flow.
Earnings Call Summary
Costco delivered 9.1 percent revenue growth to 69.6 billion dollars in the second quarter, beating earnings per share at 4.93 dollars versus 4.92 dollars expected, but missing revenue versus consensus of 71.2 billion dollars. Same-store sales grew 7.4 percent excluding gas and currency effects. Comparable sales strength came from all categories, with meat and bakery leading fresh food at low double digits. Digital sales grew 22.6 percent, with personalized recommendations driving 470 million dollars in e-commerce sales. However, paid membership growth decelerated to 4.8 percent year over year, down from typical 5 percent levels, partly due to slower new warehouse openings in new markets and higher penetration of online signup members who renew at lower rates. Management emphasized continued price reductions on items like butter, coffee, and eggs despite tariff uncertainty, and highlighted technology investments in checkout efficiency and personalized experiences.
Guidance Management did not provide specific forward guidance for future quarters. They indicated expecting about 28 net new warehouse openings in fiscal 2026 and are targeting 30 plus openings per year going forward. Capital expenditures are estimated at approximately 6.5 billion dollars for the full year.
Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.
Dividend
Costco pays an annual dividend rate of $5.88 per share, giving it a dividend yield of 0.59% based on recent trading levels. The payout ratio sits at 26.7%.
Insider Buying and Selling at Costco Wholesale Corporation
Company insiders completed several transactions prior to the filing. Director Kenneth D Denman sold 885 shares on June 23 at an average price of $957.45 for a total of $847,345. Officer Claudine Adamo sold 2,200 shares on September 29 at $915.93 per share, totaling $2.0 million. Officer Caton Frates sold 800 shares on September 29 at $915.93 per share for a total of $733,328. Officer William Richard Wilcox sold 1,100 shares on October 13 at $958.20 per share, coming to $1.05 million.
Analysts Set New Price Targets
Wall Street firms updated their outlooks on the stock ahead of the filing. On September 28, Deutsche Bank maintained a buy rating while adjusting its price target from $1,091.00 to $1,079.00. Argus Research reiterated a buy rating with a $1,230.00 price target on September 28. RBC Capital maintained a sector perform rating and a $1,000.00 price target on October 9. Tigress Financial maintained a buy rating and raised its target from $1,065.00 to $1,250.00 on October 15. CICC initiated coverage on October 21 with an outperform rating and a $1050.00 price target. Overall, the stock carries a buy recommendation from analysts.
About Costco
Based in Issaquah, Washington, Costco Wholesale Corporation operates a massive chain of membership-only warehouse clubs. The company offers a wide selection of branded and private-label goods across discount stores in the United States and international markets.
Bottom Line
Sepio Capital's decision to trim its stake is part of the routine portfolio adjustments revealed through recent regulatory disclosures. Investors will look toward the upcoming earnings release on December 10 to gauge the company's financial momentum.
Related Filing Alerts
Source: Sepio Capital's 13F filing on $COST (Oct 22, 2026). 13F filings show holdings as of the end of the reporting quarter and may not reflect the fund's current position. Written by software, not financial advice. How we make alerts