Camarda Financial Advisors LLC Makes New $4.11 Million Investment in Starbucks Corporation $SBUX

Key Points

• Camarda Financial Advisors acquired 40,208 Starbucks shares worth approximately $4.11 million, making SBUX its 20th-largest holding and 1.2% of its portfolio.
• Institutional investors own 72.29% of Starbucks, with major firms including Capital World Investors, BlackRock, State Street and T. Rowe Price holding or increasing substantial positions.
• Starbucks exceeded quarterly EPS and revenue estimates, but revenue declined 1.4% year over year. Analysts’ consensus rating is Hold with a $110.30 target price, while elevated valuation, labor tensions and turnaround costs remain risks.

Camarda Financial Advisors LLC acquired a new stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 40,208 shares of the coffee company's stock, valued at approximately $4,109,000. Starbucks makes up 1.2% of Camarda Financial Advisors LLC's investment portfolio, making the stock its 20th biggest position.

Several other large investors also recently modified their holdings of SBUX. Capital World Investors grew its position in Starbucks by 9.0% in 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. BlackRock Inc. acquired a new position in Starbucks during the second quarter worth $8,504,509,000. State Street Corp lifted its holdings in shares of Starbucks by 0.7% during the fourth quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock valued at $4,031,053,000 after acquiring an additional 327,161 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Starbucks by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock valued at $2,212,153,000 after acquiring an additional 225,168 shares during the period. Finally, T. Rowe Price Investment Management Inc. boosted its stake 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 valued at $1,637,704,000 after purchasing an additional 7,725,547 shares in the last quarter. 72.29% of the stock is currently owned by institutional investors.

More Starbucks News

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on SBUX. Stifel Nicolaus set a $117.00 target price on shares of Starbucks and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Wedbush assumed coverage on shares of Starbucks in a research note on Thursday, May 14th. They set an "outperform" rating on the stock. Raymond James Financial lowered shares of Starbucks to an "outperform" rating in a report on Monday, August 3rd. Guggenheim initiated coverage on Starbucks in a research report on Monday, August 3rd. They set a "buy" rating on the stock. Finally, Morgan Stanley cut Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $110.30.

Insider Buying and Selling at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total value of $236,251.71. Following the transaction, the chief executive officer directly owned 75,135 shares in the company, valued at $7,963,558.65. This represents a 2.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock worth $681,663 over the last ninety days. Insiders own 0.03% of the company's stock.

Starbucks Stock Down 1.1%

Starbucks stock opened at $107.26 on Friday. The business's 50-day simple moving average is $104.95 and its 200 day simple moving average is $100.73. The stock has a market cap of $122.28 billion, a price-to-earnings ratio of 61.64, a P/E/G ratio of 1.87 and a beta of 0.97. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced 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 analysts' expectations of $9.17 billion. During the same period in the previous year, the business posted $0.50 EPS. The company's quarterly revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, sell-side analysts expect that Starbucks Corporation will post 2.64 EPS for the current year.

Starbucks Announces Dividend

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

Starbucks 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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