Capital Group Private Client Services Inc. Grows Holdings in Starbucks Corporation $SBUX

Key Points

• Capital Group Private Client Services Inc. boosted its Starbucks stake by 504.9% in the fourth quarter, ending with 42,161 shares valued at about $3.55 million.
• Starbucks saw mixed insider activity, with EVP Sara Kelly and CEO Brady Brewer both selling shares under pre-arranged 10b5-1 plans; insiders sold 6,458 shares worth $650,111 over the last 90 days.
• Analysts remain generally constructive on the stock: Starbucks has a Moderate Buy consensus rating, with an average price target of $107.48, while the company recently beat quarterly EPS and revenue estimates and maintained its dividend.

Capital Group Private Client Services Inc. increased its position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 504.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 42,161 shares of the coffee company's stock after purchasing an additional 35,191 shares during the quarter. Capital Group Private Client Services Inc.'s holdings in Starbucks were worth $3,550,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Collier Financial purchased a new position in Starbucks during the third quarter worth about $25,000. Rachor Investment Advisory Services LLC bought a new stake in Starbucks in the fourth quarter worth about $25,000. Y.D. More Investments Ltd bought a new stake in Starbucks in the third quarter worth about $26,000. Entrust Financial LLC bought a new stake in Starbucks in the fourth quarter worth about $26,000. Finally, Tucker Asset Management LLC bought a new stake in Starbucks in the fourth quarter worth about $27,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Starbucks

In other Starbucks news, EVP Sara Kelly sold 2,000 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The shares were 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 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction of $233,621.49. Following the completion of the sale, the chief executive officer directly owned 81,559 shares of the company's stock, valued at $8,548,198.79. This trade represents a 2.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 6,458 shares of company stock valued at $650,111. 0.03% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Robert W. Baird lifted their price objective on shares of Starbucks from $112.00 to $117.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Wedbush assumed coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued an "outperform" rating on the stock. Citizens Jmp assumed coverage on shares of Starbucks in a research report on Monday, March 30th. They issued an "underperform" rating and a $84.00 price objective on the stock. Dbs Bank raised shares of Starbucks from a "strong sell" rating to a "moderate sell" rating in a research report on Friday, March 20th. Finally, Morgan Stanley raised shares of Starbucks from an "overweight" rating to an "overweight" rating in a research report on Thursday, May 14th. One investment 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 company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $107.48.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Several articles frame Starbucks as a potential turnaround story, with commentary noting improving traffic, rewards growth, innovation, and margin-recovery efforts that could support a rebound. SBUX Down 9% in a Month: Is This the Right Time to Buy the Stock?
• Positive Sentiment: Starbucks is reportedly tying part of tech workers’ bonuses to AI usage, signaling management is pushing harder on productivity and technology adoption, which investors may view as a margin and efficiency positive. Starbucks (SBUX) Ties Part of Tech Bonuses to AI Usage
• Positive Sentiment: Coverage comparing Starbucks with Chipotle argued that Starbucks’ turnaround looks more credible than other beaten-down restaurant names, which can reinforce investor confidence in the stock. Chipotle vs Starbucks: One Turnaround Is Real, One Is Just Smoke
• Neutral Sentiment: One article revisited Starbucks’ long-term returns versus McDonald’s, which is more historical context than a direct catalyst for the stock. If you had invested $1,000 in McDonald’s or Starbucks 10 years ago, here’s what you’d have now
• Negative Sentiment: Headline risk remains around Starbucks’ operations, including criticism of an “unreliable” AI inventory system and a separate legal-focused article questioning whether insiders breached fiduciary duties, both of which can add pressure to sentiment. “Unreliable” AI Inventory System Gone at Starbucks, Starbucks Stock NASDAQ: SBUX Ticks Down Did Starbucks Corporation Insiders Breach their Fiduciary Duties to Shareholders?

Starbucks Price Performance

NASDAQ SBUX opened at $95.29 on Monday. The company's 50 day moving average is $99.24 and its 200-day moving average is $94.18. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $108.88. The firm has a market cap of $108.60 billion, a P/E ratio of 72.19, a price-to-earnings-growth ratio of 1.88 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.06. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The company had revenue of $9.53 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same quarter in the previous year, the firm posted $0.41 earnings per share. 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. Equities analysts expect that Starbucks Corporation will post 2.42 EPS for the current year.

Starbucks Dividend Announcement

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

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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