First Horizon Corp Reduces Stock Position in Starbucks Corporation $SBUX

Key Points

• First Horizon Corp cut its Starbucks stake by 47.5% in the first quarter, selling 16,101 shares and leaving it with 17,809 shares worth about $1.6 million.
• Several analysts turned more positive on Starbucks, with TD Cowen upgrading the stock to buy; overall, analysts have a Moderate Buy consensus and an average price target of $108.92.
• Starbucks reported better-than-expected quarterly results, including EPS of $0.50 and revenue of $9.53 billion, and it also announced a quarterly dividend of $0.62 per share.

First Horizon Corp cut its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 47.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 17,809 shares of the coffee company's stock after selling 16,101 shares during the quarter. First Horizon Corp's holdings in Starbucks were worth $1,596,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of SBUX. Vanguard Group Inc. boosted its holdings in Starbucks by 0.9% in the fourth 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 in the last quarter. Capital World Investors increased its position in Starbucks by 9.0% during the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after purchasing an additional 7,007,268 shares during the period. State Street Corp raised its holdings in Starbucks by 0.7% in the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock worth $4,031,053,000 after purchasing an additional 327,161 shares in the last quarter. Geode Capital Management LLC raised its holdings in Starbucks by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock worth $2,212,153,000 after purchasing an additional 225,168 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. lifted its position in shares of Starbucks by 65.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company's stock worth $1,637,704,000 after purchasing an additional 7,725,547 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. DA Davidson lifted their target price on shares of Starbucks from $97.00 to $102.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. TD Cowen raised shares of Starbucks from a "hold" rating to a "buy" rating and increased their price target for the stock from $106.00 to $120.00 in a research note on Thursday, May 14th. Royal Bank Of Canada lowered shares of Starbucks from a "sector perform" rating to a "positive" rating in a report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Starbucks in a research report on Wednesday, April 29th. Finally, Guggenheim reiterated a "neutral" rating and set a $97.00 target price (up from $95.00) on shares of Starbucks in a report on Wednesday, April 29th. Nineteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $108.92.

Insider Activity

In other news, EVP Sara Kelly sold 2,000 shares of the company'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 transaction, the executive vice president owned 57,653 shares in the company, valued at approximately $6,053,565. This represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the sale, the chief executive officer owned 77,364 shares in the company, valued at approximately $8,045,856. The trade was 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 have sold a total of 9,275 shares of company stock worth $947,833 over the last three months. 0.03% of the stock is currently owned by insiders.

Starbucks Trading Down 0.4%

Shares of NASDAQ:SBUX opened at $106.01 on Friday. The stock has a fifty day simple moving average of $102.43 and a two-hundred day simple moving average of $97.07. The stock has a market capitalization of $120.82 billion, a price-to-earnings ratio of 80.31, a PEG ratio of 2.12 and a beta of 0.98. 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 released its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.44 by $0.06. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.17 billion. During the same period in the prior year, the firm posted $0.41 earnings per share. The company'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. As a group, equities research analysts predict that Starbucks Corporation will post 2.4 EPS for the current year.

Starbucks Announces Dividend

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

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks’ AI-driven software overhaul could materially reduce operating expenses by replacing Microsoft and IBM systems, supporting future margin expansion. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs
• Positive Sentiment: The company’s recent earnings beat and revenue growth reinforce the view that its turnaround efforts are gaining traction. Starbucks earnings report
• Neutral Sentiment: Starbucks added five new Orange Cream drinks for summer, which may help traffic and seasonal sales but is not a major fundamental catalyst on its own. Starbucks adds 5 new Orange Cream drinks for summer
• Neutral Sentiment: CEO Brady Brewer sold shares under a pre-arranged trading plan, which can prompt caution but does not necessarily signal a change in the business outlook. SEC Form 4 filing

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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