Allen Investment Management LLC Sells 261,765 Shares of Starbucks Corporation $SBUX

Key Points

• Allen Investment Management LLC cut its Starbucks stake by 92.8% in the fourth quarter, selling 261,765 shares and leaving it with 20,269 shares worth about $1.7 million.
• Starbucks reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion, up 8.8% year over year.
• The company also paid a quarterly dividend of $0.62 per share, while Wall Street currently has a consensus rating of Moderate Buy and an average price target of $107.48.

Allen Investment Management LLC lowered its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 92.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 20,269 shares of the coffee company's stock after selling 261,765 shares during the quarter. Allen Investment Management LLC's holdings in Starbucks were worth $1,707,000 at the end of the most recent reporting period.

Other institutional investors have also recently bought and sold shares of the company. Aerodigm Wealth LLC lifted its position in shares of Starbucks by 2.7% in the fourth quarter. Aerodigm Wealth LLC now owns 4,245 shares of the coffee company's stock worth $357,000 after purchasing an additional 112 shares in the last quarter. River Street Advisors LLC increased its holdings in Starbucks by 0.8% during the fourth quarter. River Street Advisors LLC now owns 13,516 shares of the coffee company's stock worth $1,138,000 after buying an additional 113 shares during the last quarter. Creative Financial Designs Inc. ADV increased its holdings in Starbucks by 38.2% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 409 shares of the coffee company's stock worth $34,000 after buying an additional 113 shares during the last quarter. Integrity Alliance LLC. increased its holdings in Starbucks by 3.0% during the fourth quarter. Integrity Alliance LLC. now owns 3,907 shares of the coffee company's stock worth $329,000 after buying an additional 114 shares during the last quarter. Finally, Opus Capital Group LLC increased its holdings in Starbucks by 3.9% during the fourth quarter. Opus Capital Group LLC now owns 3,187 shares of the coffee company's stock worth $268,000 after buying an additional 120 shares during the last quarter. Institutional investors own 72.29% of the company's stock.

Starbucks Stock Performance

NASDAQ:SBUX opened at $96.51 on Tuesday. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $108.88. The firm has a market cap of $109.99 billion, a price-to-earnings ratio of 73.11, a P/E/G ratio of 1.95 and a beta of 0.98. The firm's 50-day simple moving average is $99.04 and its 200 day simple moving average is $93.90.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.06. The firm had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business's revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Sell-side analysts anticipate that Starbucks Corporation will post 2.42 EPS for the current year.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 15th were paid a $0.62 dividend. The ex-dividend date was Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.6%. Starbucks's payout ratio is currently 187.88%.

Wall Street Analysts Forecast Growth

Several research firms have commented on SBUX. Citigroup upped their price objective on shares of Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Robert W. Baird lifted their target price on shares of Starbucks from $112.00 to $117.00 and gave the stock an "outperform" rating in a report on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Starbucks in a report on Wednesday, April 29th. Wedbush assumed coverage on shares of Starbucks in a report on Thursday, May 14th. They set an "outperform" rating for the company. Finally, Morgan Stanley upgraded shares of Starbucks from an "overweight" rating to an "overweight" rating in a research report on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $107.48.

Insider Buying and Selling at Starbucks

In other news, EVP Sara Kelly sold 2,000 shares of Starbucks stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the sale, the executive vice president owned 57,653 shares in the company, valued at $6,053,565. The trade was a 3.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer owned 81,559 shares of the company's stock, valued at $8,548,198.79. This trade represents a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 11,187 shares of company stock valued at $1,111,085 in the last quarter. 0.03% of the stock is currently owned by company insiders.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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