Bank of America Corp DE Invests $1.58 Billion in Starbucks Corporation $SBUX

Key Points

• Bank of America acquired 15.47 million Starbucks shares worth approximately $1.58 billion during the second quarter, giving it a 1.36% stake. Institutional investors collectively own 72.29% of Starbucks.
• Analyst sentiment is mixed: Starbucks has a consensus rating of “Hold” and an average price target of $110.30, with targets ranging from $110 to $126.
• Starbucks beat quarterly earnings expectations, reporting $0.85 in EPS versus the $0.66 consensus and $9.32 billion in revenue, although revenue declined 1.4% year over year. The stock opened at $99.07, while CEO Brady Brewer and other insiders have sold shares recently.

Bank of America Corp DE bought a new position in Starbucks Corporation (NASDAQ:SBUX - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 15,473,992 shares of the coffee company's stock, valued at approximately $1,581,287,000. Bank of America Corp DE owned 1.36% of Starbucks as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently bought and sold shares of SBUX. Capital World Investors increased its holdings in Starbucks by 9.0% in the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock worth $7,135,228,000 after acquiring an additional 7,007,268 shares in the last quarter. BlackRock Inc. purchased a new position in shares of Starbucks during the 2nd quarter valued at $8,504,509,000. State Street Corp boosted its holdings in Starbucks by 0.7% in the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock worth $4,031,053,000 after buying an additional 327,161 shares during the period. Geode Capital Management LLC boosted its holdings in Starbucks by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock worth $2,212,153,000 after buying an additional 225,168 shares during the period. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in 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 buying an additional 7,725,547 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have commented on SBUX. Wells Fargo & Company cut Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $126.00 price objective on shares of Starbucks in a research note on Thursday, July 30th. Melius Research set a $110.00 target price on Starbucks in a research report on Monday, August 3rd. Royal Bank Of Canada reissued a "sector perform" rating and set a $115.00 target price (up from $110.00) on shares of Starbucks in a research note on Thursday, July 30th. Finally, Zacks Research cut Starbucks from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, Starbucks has an average rating of "Hold" and a consensus target price of $110.30.

Insider Buying and Selling at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $105.60, for a total transaction of $235,382.40. Following the completion of the transaction, the chief executive officer owned 73,149 shares in the company, valued at $7,724,534.40. This trade represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock valued at $703,450 over the last ninety days. Company insiders own 0.03% of the company's stock.

Starbucks Trading Up 0.3%

NASDAQ:SBUX opened at $99.07 on Tuesday. The business's 50-day moving average is $105.10 and its 200 day moving average is $101.33. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $110.51. The company has a market capitalization of $112.94 billion, a P/E ratio of 56.94, a P/E/G ratio of 1.70 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating 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 business had revenue of $9.32 billion during the quarter, compared to analysts' expectations of $9.17 billion. During the same quarter last year, the business posted $0.50 EPS. The firm's revenue for the quarter was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, research analysts forecast that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Profile

Starbucks Corporation is a global coffeehouse company that roasts, markets and sells specialty coffee, tea, cold beverages, food and other related products. Its offerings include brewed coffee, espresso-based beverages, cold drinks, teas, pastries, breakfast items and packaged coffee and tea products. Starbucks also sells branded merchandise, including drinkware and related accessories.

Founded in 1971 in Seattle, Starbucks has grown from a local coffee retailer into an international business.

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