Bank of America Corp DE Acquires 1,300,085 Shares of Starbucks Corporation $SBUX

Key Points

• Bank of America increased its Starbucks stake by 9% in the first quarter, buying 1.3 million additional shares to own 15.76 million shares valued at approximately $1.41 billion. Institutional investors and hedge funds collectively own 72.29% of Starbucks.
• Starbucks exceeded quarterly expectations with adjusted EPS of $0.85 versus the $0.66 consensus and revenue of $9.32 billion. Management raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65, though revenue still declined 1.4% year over year.
• Analysts remain generally positive, with Starbucks carrying a “Moderate Buy” consensus rating and an average price target of $112.04 versus a recent share price of $105.85. The company also declared a quarterly dividend of $0.62 per share, yielding about 2.3%.

Bank of America Corp DE grew its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 9.0% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 15,761,355 shares of the coffee company's stock after buying an additional 1,300,085 shares during the quarter. Bank of America Corp DE owned 1.38% of Starbucks worth $1,412,060,000 as of its most recent filing with the SEC.

Other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its position in Starbucks by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company's stock valued at $9,634,523,000 after acquiring an additional 971,773 shares during the period. Capital World Investors lifted its holdings in shares of Starbucks by 9.0% during the fourth quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after acquiring an additional 7,007,268 shares during the period. State Street Corp boosted its stake in shares of Starbucks by 0.7% in the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock valued at $4,031,053,000 after purchasing an additional 327,161 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Starbucks by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock valued at $2,212,153,000 after purchasing an additional 225,168 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its holdings in shares of Starbucks by 65.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company's stock worth $1,637,704,000 after purchasing an additional 7,725,547 shares during the last quarter. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Stock Performance

Shares of SBUX stock opened at $105.85 on Friday. The firm's 50 day moving average price is $102.19 and its two-hundred day moving average price is $99.04. Starbucks Corporation has a 52-week low of $77.99 and a 52-week high of $109.23. The stock has a market cap of $120.64 billion, a PE ratio of 60.83, a PEG ratio of 2.07 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, beating the consensus estimate of $0.66 by $0.19. The company had revenue of $9.32 billion during the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 33.44%. The business's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, sell-side analysts predict that Starbucks Corporation will post 2.41 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks's dividend payout ratio is currently 187.88%.

Analyst Upgrades and Downgrades

SBUX has been the subject of a number of recent analyst reports. Guggenheim reiterated a "neutral" rating and set a $97.00 target price (up from $95.00) on shares of Starbucks in a research report on Wednesday, April 29th. Wells Fargo & Company boosted their price target on shares of Starbucks from $120.00 to $125.00 and gave the company an "overweight" rating in a research report on Thursday. Robert W. Baird set a $124.00 price objective on shares of Starbucks in a research note on Thursday. TD Cowen reaffirmed a "buy" rating and set a $120.00 price objective on shares of Starbucks in a report on Thursday. Finally, Piper Sandler reiterated an "overweight" rating and issued a $110.00 target price on shares of Starbucks in a research note on Wednesday, April 29th. Eighteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $112.04.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks reported adjusted Q3 earnings of $0.85 per share, well above the $0.66 analyst consensus, while revenue of $9.32 billion also exceeded expectations. Adjusted EPS increased sharply from $0.50 a year earlier. Reuters article
• Positive Sentiment: Global comparable-store sales rose 7.9%, beating the 5.7% expectation, driven primarily by a 4.2% increase in transactions. North American revenue reportedly climbed 7% to $7.4 billion, reinforcing the view that traffic—not merely higher prices—is powering the recovery. Starbucks Q3 results
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.55-$2.65, from $2.25-$2.45, and now expects full-year global comparable sales growth of approximately 6%. Expanding margins and faster service are supporting investor confidence in the turnaround. Starbucks turnaround and outlook
• Positive Sentiment: Analyst reactions were generally supportive: TD Cowen reaffirmed a Buy rating with a $120 target, while Wells Fargo raised its target to $125 and Morgan Stanley lifted its target to $115. Starbucks is also testing carbonated versions of its Refreshers, expanding its non-coffee product lineup for younger consumers. Starbucks carbonated Refreshers
• Neutral Sentiment: Analyst opinions remain mixed. UBS, Citigroup and DA Davidson raised targets to $112, $112 and $110 while maintaining neutral ratings; Wolfe Research kept a Hold rating. BNP Paribas Exane raised its target to $92 but retained an Underperform rating, citing limited upside.
• Negative Sentiment: Despite the operational improvement, revenue declined 1.4% year over year, partly reflecting the China joint-venture structure, and the shares trade at a high valuation after their recent rally. That valuation leaves less room for execution missteps or a slowdown in comparable sales growth.

Insider Buying and Selling

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $104.00, for a total value of $231,816.00. Following the transaction, the chief executive officer owned 77,364 shares of the company's stock, valued at approximately $8,045,856. This represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,687 shares of company stock valued at $679,033 in the last ninety days. Corporate insiders own 0.03% of the company's stock.

Starbucks Company Profile

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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