Ancora Advisors LLC Invests $1.15 Million in Starbucks Corporation $SBUX

Key Points

• Ancora Advisors acquired a new Starbucks stake worth approximately $1.15 million, while institutional investors collectively own 72.29% of the company’s shares.
• Starbucks exceeded quarterly earnings and revenue estimates, reporting $0.85 in EPS and $9.32 billion in revenue, though revenue declined 1.4% year over year.
• The stock trades near its 12-month high at a relatively elevated P/E ratio of 61.64; analysts have a consensus “Hold” rating with a $110.30 price target, while labor tensions and turnaround costs remain risks.

Ancora Advisors LLC purchased a new stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 11,245 shares of the coffee company's stock, valued at approximately $1,149,000.

Several other institutional investors and hedge funds have also bought and sold shares of SBUX. Palisade Capital Management LP acquired a new stake in shares of Starbucks during the second quarter valued at about $521,000. Canada Pension Plan Investment Board acquired a new position in shares of Starbucks in the second quarter valued at approximately $100,590,000. Manatuck Hill Partners LLC bought a new position in Starbucks in the 2nd quarter valued at approximately $715,000. Castleark Management LLC bought a new position in Starbucks in the 2nd quarter valued at approximately $472,000. Finally, AFT Forsyth & Company Inc. acquired a new stake in Starbucks during the 2nd quarter worth approximately $665,000. Institutional investors own 72.29% of the company's stock.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Analyst upgrade: Robert W. Baird upgraded Starbucks to “strong buy,” signaling confidence in the company’s turnaround prospects and potentially supporting investor sentiment. Zacks report
• Positive Sentiment: Fall menu and marketing: Starbucks launched its seasonal menu, including the Pumpkin Spice Latte, supported by advertising featuring Martha Stewart. The promotion could drive customer traffic and strengthen seasonal sales. Starbucks launches fall menu Pumpkin Spice Latte advertising
• Positive Sentiment: Property transactions: A corporate Starbucks drive-thru in Jacksonville, Florida, was included in a $6.9 million pair of net-lease deals. While not a material financial event for Starbucks, the transaction highlights ongoing investor demand for Starbucks-occupied properties. Starbucks net-lease transaction
• Neutral Sentiment: Valuation and operating backdrop: Starbucks recently exceeded quarterly earnings and revenue expectations, but revenue declined year over year. With a relatively high earnings multiple, investors may require sustained improvement from the company’s turnaround plan.
• Negative Sentiment: Union-led boycott: Starbucks Workers United called for a boycott tied to stalled contract negotiations, seeking $17 hourly wages and a contract covering more than 12,000 baristas. The action presents near-term traffic, sales and reputational risks. Starbucks union boycott
• Negative Sentiment: Consumer caution: Reports questioning whether consumers are rethinking coffee purchases raise concerns about traffic and demand, particularly if customers trade down or reduce premium beverage spending. Consumer caution report
• Negative Sentiment: Turnaround costs: Additional job cuts as Starbucks expands its roughly $2 billion overhaul may pressure near-term morale and execution, even though management expects restructuring to improve efficiency over time. Starbucks job cuts and turnaround

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total transaction of $236,251.71. Following the transaction, the chief executive officer owned 75,135 shares in the company, valued at $7,963,558.65. The trade was a 2.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 6,687 shares of company stock worth $681,663. 0.03% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SBUX. Stephens began coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued an "overweight" rating for the company. The Goldman Sachs Group lowered shares of Starbucks from a "neutral" rating to a "neutral" rating in a report on Thursday, May 14th. BMO Capital Markets reissued an "outperform" rating and issued a $130.00 price objective on shares of Starbucks in a research note on Thursday, July 30th. UBS Group increased their price objective on Starbucks from $105.00 to $112.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Finally, Scotiabank lowered Starbucks from a "market perform" rating to an "underperform" rating in a research report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $110.30.

Starbucks Trading Down 1.1%

Shares of SBUX opened at $107.26 on Friday. The firm's fifty day simple moving average is $104.95 and its two-hundred day simple moving average is $100.73. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $110.51. The stock has a market capitalization of $122.28 billion, a P/E ratio of 61.64, a price-to-earnings-growth ratio of 1.87 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.19. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The firm had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same period last year, the company posted $0.50 EPS. The business's quarterly revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, research analysts predict that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a yield of 2.3%. Starbucks's payout ratio is 142.53%.

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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