Diversify Wealth Management LLC Buys 12,692 Shares of Starbucks Corporation $SBUX

Key Points

• Diversify Wealth Management LLC increased its Starbucks stake by 123.1% in the first quarter, buying 12,692 shares and bringing its total holding to 23,004 shares worth about $2.06 million.
• Starbucks reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion expected; revenue also rose 8.8% year over year.
• The stock has near-term support from analysts and a dividend announcement, with a consensus rating of Moderate Buy, an average price target of $108.92, and a quarterly dividend of $0.62 per share set to be paid on August 28.

Diversify Wealth Management LLC boosted its position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 123.1% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 23,004 shares of the coffee company's stock after buying an additional 12,692 shares during the quarter. Diversify Wealth Management LLC's holdings in Starbucks were worth $2,061,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in SBUX. Brighton Jones LLC boosted its stake in shares of Starbucks by 86.5% during the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after purchasing an additional 81,952 shares during the period. Schnieders Capital Management LLC. raised its position in Starbucks by 47.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after purchasing an additional 1,164 shares during the period. Flow Traders U.S. LLC bought a new stake in Starbucks in the second quarter worth about $288,000. Gamco Investors INC. ET AL lifted its stake in Starbucks by 92.8% in the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock worth $479,000 after purchasing an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its position in shares of Starbucks by 7.6% during the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock valued at $10,328,000 after buying an additional 7,978 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Citigroup upped their target price on Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Citizens Jmp assumed coverage on Starbucks in a report on Monday, March 30th. They set an "underperform" rating and a $84.00 price objective for the company. UBS Group downgraded Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Guggenheim reiterated a "neutral" rating and issued a $97.00 target price (up from $95.00) on shares of Starbucks in a research note on Wednesday, April 29th. Finally, JPMorgan Chase & Co. lifted their target price on Starbucks from $95.00 to $100.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Nineteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $108.92.

Insider Activity

In related news, EVP Sara Kelly sold 2,000 shares of the company's stock in a transaction dated 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 of the company's stock, valued at $6,053,565. This represents a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer directly owned 77,364 shares in the company, valued at $8,045,856. This trade represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 9,275 shares of company stock valued at $947,833 over the last 90 days. 0.03% of the stock is currently owned by corporate insiders.

Starbucks Stock Performance

Shares of NASDAQ SBUX opened at $107.34 on Tuesday. Starbucks Corporation has a 52-week low of $77.99 and a 52-week high of $108.88. The firm has a market capitalization of $122.34 billion, a price-to-earnings ratio of 81.32, a PEG ratio of 2.11 and a beta of 0.98. The stock has a 50 day moving average price of $102.47 and a 200 day moving average price of $97.31.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.44 by $0.06. The company had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.Starbucks's quarterly revenue was up 8.8% on a year-over-year basis. During the same period last year, the business posted $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Analysts forecast that Starbucks Corporation will post 2.4 earnings per share for the current year.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid a dividend of $0.62 per share. The ex-dividend date is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. Starbucks's dividend payout ratio (DPR) is currently 187.88%.

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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