Bank of New York Mellon Corp Purchases 263,903 Shares of Starbucks Corporation $SBUX

Key Points

• Bank of New York Mellon increased its Starbucks stake by 3.4% in Q4, buying 263,903 shares and bringing its total holding to 8.14 million shares worth about $685.3 million.
• Starbucks recently reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 estimated and revenue of $9.53 billion, up 8.8% year over year.
• Despite some insider selling, analysts remain generally constructive on the stock, with a Moderate Buy consensus and an average price target of $107.48, while Starbucks also maintained its quarterly dividend of $0.62 per share.

Bank of New York Mellon Corp raised its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 3.4% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 8,138,132 shares of the coffee company's stock after buying an additional 263,903 shares during the quarter. Bank of New York Mellon Corp owned about 0.71% of Starbucks worth $685,312,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in SBUX. Collier Financial bought a new stake in shares of Starbucks in the third quarter valued at $25,000. Rachor Investment Advisory Services LLC bought a new stake in shares of Starbucks during the 4th quarter valued at $25,000. Y.D. More Investments Ltd bought a new stake in shares of Starbucks during the 3rd quarter valued at $26,000. Entrust Financial LLC bought a new stake in shares of Starbucks during the 4th quarter valued at $26,000. Finally, Tucker Asset Management LLC bought a new stake in shares of Starbucks during the 4th quarter valued at $27,000. 72.29% of the stock is currently owned by institutional investors.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks has fallen sharply in recent weeks, which has pushed the stock into oversold territory; that can sometimes set up a rebound if selling pressure fades. Wall Street analysts are also raising earnings estimates, adding to the case for a trend reversal. After Plunging 9.0% in 4 Weeks, Here's Why the Trend Might Reverse for Starbucks (SBUX)
• Positive Sentiment: Analysts and market commentary remain generally constructive, citing strong institutional ownership, a consensus price target above the current trading level, and the idea that Starbucks’ turnaround has already produced an earnings beat. Starbucks Stock NASDAQ: SBUX Rises Along With Nostalgic Menu Concerns
• Positive Sentiment: Starbucks is leaning into nostalgia-driven menu changes, including the return of fan favorites, as part of its “Back to Starbucks” strategy to strengthen customer loyalty and traffic. How Starbucks plans to boost the afternoon business
• Neutral Sentiment: The company announced CEO Brian Niccol will speak at Evercore’s Consumer and Retail Conference on June 9, which is mainly an investor-relations update unless management offers new strategic details. Starbucks to Participate in the 6th Annual Evercore Consumer and Retail Conference
• Neutral Sentiment: Broader coverage comparing Starbucks with other consumer stocks suggests the shares have held up better than much of the industry over the past year, but this is more of a relative-performance note than a direct catalyst. How Is Starbucks’ Stock Performance Compared to Other Consumer Discretionary Stocks?
• Negative Sentiment: One consumer-retail article warns that over-expansion can hurt retailers, a theme that could matter for Starbucks if investors worry about store density or slowing returns from growth. Too Close for Comfort: How Over-Expansion Is Hurting Major Retailers

Insider Transactions at Starbucks

In other news, EVP Sara Kelly sold 2,000 shares of the company's stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the transaction, the executive vice president directly owned 57,653 shares in the company, valued at approximately $6,053,565. This represents a 3.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 company's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the transaction, the chief executive officer owned 81,559 shares of the company's stock, valued at $8,548,198.79. The trade was a 2.66% decrease in their ownership of the stock. 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 7,046 shares of company stock valued at $708,911 over the last quarter. Company insiders own 0.03% of the company's stock.

Starbucks Stock Up 0.4%

Shares of NASDAQ SBUX opened at $95.89 on Thursday. The firm has a market capitalization of $109.29 billion, a P/E ratio of 72.64, a P/E/G ratio of 1.88 and a beta of 0.98. The stock's 50-day simple moving average is $99.15 and its two-hundred day simple moving average is $94.03. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $108.88.

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

Starbucks Announces Dividend

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

Analysts Set New Price Targets

A number of research firms recently issued reports on SBUX. Wells Fargo & Company reiterated an "overweight" rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Wednesday, April 29th. Dbs Bank upgraded Starbucks from a "strong sell" rating to a "moderate sell" rating in a research note on Friday, March 20th. Piper Sandler reiterated an "overweight" rating and set a $110.00 price objective on shares of Starbucks in a research note on Wednesday, April 29th. Scotiabank lowered Starbucks from a "market perform" rating to an "underperform" rating in a research note on Thursday, May 14th. Finally, Evercore boosted their price objective on Starbucks from $110.00 to $115.00 and gave the company an "outperform" rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $107.48.

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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