Dearborn Partners LLC Invests $3.78 Million in Starbucks Corporation $SBUX

Key Points

• Dearborn Partners acquired 37,006 Starbucks shares in the second quarter, representing an investment of approximately $3.78 million. Institutional investors collectively own 72.29% of the company.
• Starbucks beat quarterly expectations with $0.85 in EPS versus the $0.66 consensus and revenue of $9.32 billion, although revenue declined 1.4% year over year. The stock opened at $107.26, while analysts’ consensus price target stands at $110.30.
• Starbucks declared a quarterly dividend of $0.62 per share, or $2.48 annualized, yielding about 2.3%. CEO Brady Brewer also sold 2,229 shares under a pre-arranged Rule 10b5-1 trading plan.

Dearborn Partners LLC acquired a new position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 37,006 shares of the coffee company's stock, valued at approximately $3,782,000.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Cornerstone Financial Management LLC bought a new stake in shares of Starbucks in the 4th quarter valued at about $25,000. Phillip James Consulting Co. bought a new position in Starbucks during the 4th quarter worth approximately $25,000. Meeder Asset Management Inc. bought a new position in Starbucks during the 2nd quarter worth approximately $25,000. Entrust Financial LLC acquired a new position in Starbucks during the fourth quarter valued at approximately $26,000. Finally, Kelleher Financial Advisors acquired a new position in Starbucks during the third quarter valued at approximately $27,000. Institutional investors own 72.29% of the company's stock.

Starbucks Trading Down 1.1%

SBUX opened at $107.26 on Friday. The stock has a market capitalization of $122.28 billion, a P/E 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. The firm's fifty day simple moving average is $104.95 and its 200 day simple moving average is $100.73.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 quarter in the prior year, the company earned $0.50 EPS. The company's revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities research analysts predict that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors 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 yield of 2.3%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks's dividend payout ratio (DPR) is currently 142.53%.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total value of $236,251.71. Following the sale, the chief executive officer owned 75,135 shares in the company, valued at approximately $7,963,558.65. The trade was a 2.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 6,687 shares of company stock valued at $681,663. 0.03% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms have weighed in on SBUX. BTIG Research reiterated a "buy" rating and issued a $115.00 target price on shares of Starbucks in a report on Friday, July 31st. Scotiabank lowered shares of Starbucks from a "market perform" rating to an "underperform" rating in a report on Thursday, May 14th. Jefferies Financial Group started coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued a "buy" rating for the company. Stifel Nicolaus set a $117.00 price objective on Starbucks and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Finally, Needham & Company LLC set a $120.00 target price on Starbucks in a report on Tuesday, August 18th. One 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 issued a Sell rating to the stock. According to data from MarketBeat, Starbucks presently has an average rating of "Hold" and a consensus price target of $110.30.

Starbucks News Summary

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

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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