Franklin Resources Inc. Sells 139,271 Shares of Starbucks Corporation $SBUX

Key Points

• Franklin Resources Inc. cut its Starbucks stake by 4.1% in the fourth quarter, selling 139,271 shares and ending the period with 3.22 million shares worth about $271.4 million.
• Institutional ownership remains high, with several large investors adding to positions and 72.29% of Starbucks stock currently held by institutional investors.
• Starbucks posted stronger-than-expected quarterly results, reporting $0.50 EPS and $9.53 billion in revenue, while analysts maintain an overall Moderate Buy rating with an average target price of $107.48.

Franklin Resources Inc. reduced its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 4.1% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 3,222,538 shares of the coffee company's stock after selling 139,271 shares during the period. Franklin Resources Inc. owned 0.28% of Starbucks worth $271,370,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of SBUX. Norges Bank bought a new position in Starbucks during the 4th quarter worth $1,232,650,000. Capital Research Global Investors raised 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 purchasing an additional 8,774,198 shares during the last quarter. Capital World Investors raised 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 worth $7,135,228,000 after purchasing an additional 7,007,268 shares during the last quarter. Corient Private Wealth LLC raised its position in Starbucks by 146.6% during the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock worth $553,201,000 after purchasing an additional 3,596,014 shares during the last quarter. Finally, Capital International Investors raised its position in Starbucks by 22.5% during 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 last quarter. 72.29% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. BTIG Research lowered Starbucks from a "buy" rating to a "neutral" rating in a research report on Thursday, May 14th. Guggenheim reaffirmed a "neutral" rating and set a $97.00 target price (up from $95.00) on shares of Starbucks in a research report on Wednesday, April 29th. Robert W. Baird raised their target price on Starbucks from $112.00 to $117.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Dbs Bank raised Starbucks from a "strong sell" rating to a "moderate sell" rating in a research report on Friday, March 20th. Finally, UBS Group lowered Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $107.48.

Starbucks Trading Up 2.7%

SBUX stock opened at $97.41 on Wednesday. The stock has a 50-day moving average price of $99.52 and a 200-day moving average price of $94.35. Starbucks Corporation has a 1-year low of $77.99 and a 1-year high of $108.88. The firm has a market cap of $111.02 billion, a PE ratio of 73.80, a price-to-earnings-growth ratio of 1.87 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating 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 business had revenue of $9.53 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same period in the previous year, the company posted $0.41 EPS. The firm's revenue was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, analysts forecast 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 2.5%. The ex-dividend date of this dividend was Friday, May 15th. Starbucks's payout ratio is presently 187.88%.

Insider Transactions at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of the business's stock in a transaction dated Wednesday, April 29th. The stock was 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. The trade was a 3.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 1,641 shares of the business's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $94.33, for a total value of $154,795.53. Following the completion of the sale, the chief executive officer directly owned 80,181 shares of the company's stock, valued at $7,563,473.73. The trade was a 2.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,099 shares of company stock valued at $804,907 over the last ninety days. 0.03% of the stock is currently owned by corporate insiders.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is getting favorable attention for expanding its Refreshers lineup, including blended versions that management says could drive more afternoon visits and incremental sales from younger customers. Starbucks' latest drink launch is a bet on the future of fast food beverages
• Positive Sentiment: Investors are also encouraged by reports that Starbucks is seeing encouraging growth beyond the morning rush, suggesting the company’s turnaround efforts are starting to improve traffic patterns and revenue mix. Starbucks Sees Encouraging Growth beyond the Morning Rush, CNBC Reports
• Positive Sentiment: Analyst commentary remains constructive, with coverage highlighting Starbucks’ $2 billion cost-savings plan and improving margins as potential catalysts for stronger EPS growth. Can Starbucks' $2 Billion Cost-Savings Plan Accelerate EPS Growth?
• Positive Sentiment: Starbucks’ CEO also signaled international expansion as part of the company’s growth push, reinforcing the view that management sees room for long-term sales gains. Starbucks Stock (SBUX) Turns Frothy as CEO Talks International Expansion
• Neutral Sentiment: Starbucks CEO Brady Brewer disclosed a pre-arranged sale of 1,641 shares under a 10b5-1 plan, which is unlikely to be interpreted as a major change in fundamentals but can add modest overhang. SEC filing
• Negative Sentiment: One external note highlighted broader market weakness in AI and tech stocks, but this is not directly tied to Starbucks’ business and appears to have limited impact on SBUX. Deja Vu? AI Overspending Fears Renew

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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