Castle Rock Wealth Management LLC Sells 18,054 Shares of Starbucks Corporation $SBUX

Key Points

• Castle Rock Wealth Management cut its Starbucks stake by 87.5% in the fourth quarter, selling 18,054 shares and leaving it with 2,588 shares worth about $240,000.
• Starbucks is drawing bullish analyst attention, with TD Cowen upgrading the stock to Buy and lifting its price target to $120 as investors bet on the company’s turnaround and margin recovery.
• The company recently beat earnings and revenue expectations, posted 8.8% year-over-year revenue growth, and raised its FY2026 EPS guidance to 2.25-2.45 while also announcing a quarterly dividend of $0.62 per share.

Castle Rock Wealth Management LLC trimmed its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 87.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,588 shares of the coffee company's stock after selling 18,054 shares during the period. Castle Rock Wealth Management LLC's holdings in Starbucks were worth $240,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of SBUX. Vanguard Group Inc. lifted its stake in shares of Starbucks by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company's stock valued at $9,634,523,000 after acquiring an additional 971,773 shares during the last quarter. Capital Research Global Investors grew its position in Starbucks by 11.4% during the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company's stock worth $7,229,968,000 after acquiring an additional 8,774,198 shares during the last quarter. Capital World Investors grew its position in Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company's stock worth $6,575,430,000 after acquiring an additional 1,462,874 shares during the last quarter. Capital International Investors increased its stake in Starbucks by 22.5% in the 3rd quarter. Capital International Investors now owns 14,691,772 shares of the coffee company's stock worth $1,243,104,000 after purchasing an additional 2,699,479 shares during the period. Finally, Invesco Ltd. increased its stake in Starbucks by 6.5% in the 3rd quarter. Invesco Ltd. now owns 13,590,494 shares of the coffee company's stock worth $1,149,756,000 after purchasing an additional 832,540 shares during the period. 72.29% of the stock is owned by institutional investors.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: TD Cowen upgraded Starbucks to Buy and lifted its price target to $120, saying the company’s turnaround, margin recovery, and sales drivers could support stronger earnings and positive estimate revisions. TD Cowen Just Upgraded Starbucks to Buy: Margin Recovery, Sales Drivers Power Comeback Story
• Positive Sentiment: Several reports highlighted Starbucks’ shares reaching a 52-week high as investors buy into the company’s turnaround plan and improving traffic trends. Starbucks Stock (SBUX) Hits 52-Week High as Investors Buy Into Turnaround Plan
• Positive Sentiment: Zacks said Starbucks’ margin recovery is taking shape, pointing to a higher Q2 FY26 margin and improved EPS leverage from cost savings and moderating pressures. Starbucks' Margin Recovery Takes Shape: Can Cost Leverage Build?
• Positive Sentiment: Unusual options activity showed heavy call buying in Starbucks, which can signal traders are positioning for further upside. Starbucks unusual options trading activity
• Neutral Sentiment: Starbucks is also being discussed for its use of ChatGPT to help customers discover drinks, a brand and product-engagement story that is unlikely to move the stock on its own. Only 39% Of Consumers Trust AI For Purchases, Yet Starbucks Is Using ChatGPT To Pick Your Next Drink
• Negative Sentiment: UN human-rights experts urged Starbucks and the U.S. government to respond to union-busting allegations, which could add reputational and labor-relations pressure. UN human-rights experts urge Starbucks and US to address union-busting claims

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Citigroup increased their price objective on Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Morgan Stanley raised shares of Starbucks from an "overweight" rating to an "overweight" rating in a research note on Thursday. Wedbush began coverage on shares of Starbucks in a research report on Thursday. They set an "outperform" rating for the company. JPMorgan Chase & Co. raised their price target on shares of Starbucks from $95.00 to $100.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of Starbucks in a research report on Wednesday, March 4th. Twenty investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $107.48.

Starbucks Trading Up 0.4%

NASDAQ:SBUX opened at $106.40 on Friday. The company has a 50-day moving average price of $97.91 and a 200-day moving average price of $92.26. The stock has a market cap of $121.26 billion, a price-to-earnings ratio of 80.61, a P/E/G ratio of 2.14 and a beta of 1.01. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $108.88.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced 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 analysts' expectations of $9.17 billion. During the same quarter in the previous year, the company earned $0.41 earnings per share. Starbucks's quarterly revenue was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Equities analysts forecast that Starbucks Corporation will post 2.41 EPS for the current fiscal year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be issued a dividend of $0.62 per share. The ex-dividend date is Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.3%. Starbucks's dividend payout ratio is 187.88%.

Insider Activity at Starbucks

In other news, EVP Sara Kelly sold 2,500 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the transaction, the executive vice president owned 59,609 shares in the company, valued at $5,789,226.08. This trade represents a 4.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the sale, the chief executive officer owned 81,559 shares in the company, valued at $8,548,198.79. This represents a 2.66% decrease in their ownership of the stock. 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. Insiders sold a total of 11,187 shares of company stock valued at $1,111,085 in the last three months. Corporate insiders own 0.03% of the company's stock.

About Starbucks

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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