Clearbridge Investments LLC Sells 4,511,738 Shares of Starbucks Corporation $SBUX

Key Points

• Clearbridge Investments LLC cut its Starbucks stake by 69.7% in the fourth quarter, selling 4.5 million shares and leaving it with about 1.96 million shares worth $165 million.
• Starbucks reported a better-than-expected quarter, with earnings of $0.50 per share versus estimates of $0.44 and revenue of $9.53 billion, up 8.8% year over year.
• Wall Street sentiment remains generally positive: analysts have a Moderate Buy consensus and an average price target of $107.48, even as some headlines point to operational and legal risks.

Clearbridge Investments LLC decreased its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 69.7% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,959,854 shares of the coffee company's stock after selling 4,511,738 shares during the period. Clearbridge Investments LLC owned 0.17% of Starbucks worth $165,039,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in SBUX. Norges Bank bought a new position in Starbucks in the fourth quarter valued at about $1,232,650,000. Capital Research Global Investors boosted its holdings in Starbucks by 11.4% in the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company's stock valued at $7,229,968,000 after acquiring an additional 8,774,198 shares during the last quarter. Capital World Investors boosted its holdings 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 last quarter. Corient Private Wealth LLC boosted its holdings in Starbucks by 146.6% in the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock valued at $553,201,000 after acquiring an additional 3,596,014 shares during the last quarter. Finally, Capital International Investors boosted its holdings in Starbucks by 22.5% in the third quarter. Capital International Investors now owns 14,691,772 shares of the coffee company's stock valued at $1,243,104,000 after acquiring an additional 2,699,479 shares during the last quarter. Institutional investors own 72.29% of the company's stock.

Starbucks Price Performance

NASDAQ:SBUX opened at $95.29 on Monday. Starbucks Corporation has a fifty-two week low of $77.99 and a fifty-two week high of $108.88. The stock has a market capitalization of $108.60 billion, a PE ratio of 72.19, a price-to-earnings-growth ratio of 1.88 and a beta of 0.98. The business's 50-day simple moving average is $99.24 and its 200-day simple moving average is $94.18.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating the consensus estimate 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 analysts' expectations of $9.17 billion. During the same quarter in the previous year, the business posted $0.41 EPS. Starbucks's revenue for the quarter was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, research analysts expect that Starbucks Corporation will post 2.42 earnings per share for the current year.

Starbucks Dividend Announcement

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

Key Headlines Impacting Starbucks

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?

Wall Street Analyst Weigh In

SBUX has been the topic of a number of recent analyst reports. Wells Fargo & Company restated an "overweight" rating and set a $115.00 target price (up from $110.00) on shares of Starbucks in a report on Wednesday, April 29th. JPMorgan Chase & Co. raised their target price on Starbucks from $95.00 to $100.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Wolfe Research initiated coverage on Starbucks in a report on Monday, March 9th. They set a "peer perform" rating on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Starbucks in a report on Wednesday, April 22nd. Finally, BNP Paribas Exane initiated coverage on Starbucks in a report on Thursday, May 14th. They set an "underperform" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Starbucks presently has a consensus rating of "Moderate Buy" and an average price target of $107.48.

Insider Buying and Selling

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Tuesday, May 5th. The stock was 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 of the company's stock, valued at approximately $8,548,198.79. This trade represents a 2.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of Starbucks 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 sale, 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. 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 three months, insiders sold 6,458 shares of company stock worth $650,111. 0.03% of the stock is owned by insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.