Bank of New York Mellon Corp Trims Holdings in Starbucks Corporation $SBUX

Key Points

• Bank of New York Mellon cut its Starbucks stake by 4.7% in the first quarter, selling 386,290 shares but still holding 7.75 million shares valued at about $694.5 million.
• Starbucks reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion expected, while revenue rose 8.8% year over year.
• Wall Street sentiment remains broadly positive, with a Moderate Buy consensus and an average price target of $109.42, even as some analysts remain cautious and labor issues continue to weigh on the company.

Bank of New York Mellon Corp trimmed its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 4.7% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,751,842 shares of the coffee company's stock after selling 386,290 shares during the quarter. Bank of New York Mellon Corp owned about 0.68% of Starbucks worth $694,488,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors also recently bought and sold shares of the business. Brighton Jones LLC boosted its position in shares of Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock valued at $16,126,000 after buying an additional 81,952 shares during the last quarter. Schnieders Capital Management LLC. lifted its stake in Starbucks by 47.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock valued at $334,000 after acquiring an additional 1,164 shares during the period. Flow Traders U.S. LLC purchased a new stake in shares of Starbucks during the 2nd quarter valued at about $288,000. Gamco Investors INC. ET AL raised its holdings in shares of Starbucks by 92.8% during the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock valued at $479,000 after purchasing an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in shares of Starbucks by 7.6% during the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock valued at $10,328,000 after purchasing an additional 7,978 shares during the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on SBUX. Citizens Jmp initiated coverage on shares of Starbucks in a report on Monday, March 30th. They issued an "underperform" rating and a $84.00 target price on the stock. Wells Fargo & Company restated an "overweight" rating and set a $120.00 price target (up from $115.00) on shares of Starbucks in a research note on Thursday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Starbucks in a research report on Wednesday, April 29th. Scotiabank downgraded shares of Starbucks from a "market perform" rating to an "underperform" rating in a report on Thursday, May 14th. Finally, Evercore boosted their target price on shares of Starbucks from $110.00 to $115.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Nineteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $109.42.

Starbucks Stock Up 3.1%

NASDAQ SBUX opened at $108.37 on Friday. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $108.88. The company has a market capitalization of $123.51 billion, a P/E ratio of 82.10, a price-to-earnings-growth ratio of 2.09 and a beta of 0.98. The stock's 50-day moving average price is $102.55 and its 200-day moving average price is $97.78.

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, beating analysts' consensus estimates of $0.44 by $0.06. The company had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm's revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Research analysts anticipate that Starbucks Corporation will post 2.4 EPS for the current year.

Starbucks Dividend Announcement

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

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is using AI to build more of its own software in an effort to cut costs, potentially reducing a major expense line and improving margins over time. Starbucks spends $400 million a year on software — now it's using AI to build its own and cut out the middleman
• Positive Sentiment: A Reuters report said Starbucks defeated a shareholder lawsuit tied to declining U.S. and China sales, removing a potential legal overhang for the shares. Starbucks defeats shareholder lawsuit over US, China sales declines
• Positive Sentiment: Analyst commentary this week appears to be supporting the stock, with price-target increases reinforcing expectations that Starbucks’ recovery can continue. Why Starbucks (SBUX) Stock Is Up Today
• Neutral Sentiment: Starbucks announced it will release fiscal third-quarter 2026 results on July 29, which keeps investors focused on the next earnings update and management’s turnaround progress. Starbucks Announces Q3 Fiscal Year 2026 Results Conference Call
• Neutral Sentiment: Coverage comparing Starbucks with McDonald’s and other restaurant stocks highlights ongoing investor debate about valuation and turnaround potential rather than a clear new catalyst. Starbucks vs. McDonald's: Which Restaurant Stock Has the Edge Now?
• Negative Sentiment: Starbucks labor troubles are still making headlines, including reports that union issues have expanded internationally, which could add pressure on operating costs and brand sentiment. Starbucks Labor Troubles go International, Starbucks Stock NASDAQ: SBUX Gains

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $104.00, for a total value of $231,816.00. Following the completion of 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 position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the stock in a transaction on 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 sale, the executive vice president owned 57,653 shares of the company's stock, valued at $6,053,565. The trade was a 3.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 8,687 shares of company stock valued at $889,033. 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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