Ghe LLC Trims Stock Holdings in Starbucks Corporation $SBUX

Key Points

• Ghe LLC sharply reduced its Starbucks stake in the first quarter, cutting holdings by 68% and selling 24,847 shares. The firm ended the period with 11,682 shares worth about $1.05 million.
• Starbucks insiders have also been selling, including EVP Sara Kelly and CEO Brady Brewer, both under pre-arranged 10b5-1 trading plans. Insiders sold 9,275 shares worth $947,833 over the last three months.
• Analysts remain broadly constructive on SBUX, with 19 Buy ratings and a consensus “Moderate Buy” target price of $108.92. Starbucks also topped quarterly expectations with EPS of $0.50 and revenue of $9.53 billion.

Ghe LLC lowered its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 68.0% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 11,682 shares of the coffee company's stock after selling 24,847 shares during the period. Ghe LLC's holdings in Starbucks were worth $1,047,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of SBUX. Rachor Investment Advisory Services LLC bought a new stake in Starbucks in the 4th quarter valued at $25,000. Phillip James Consulting Co. purchased a new position in shares of Starbucks during the fourth quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Starbucks during the fourth quarter valued at about $25,000. Entrust Financial LLC bought a new stake in Starbucks in the 4th quarter worth approximately $26,000. Finally, Financial Freedom LLC raised its stake in Starbucks by 296.2% during the first quarter. Financial Freedom LLC now owns 313 shares of the coffee company's stock valued at $28,000 after purchasing an additional 234 shares in the last quarter. Institutional investors own 72.29% of the company's stock.

Insider Buying and Selling at Starbucks

In other news, EVP Sara Kelly sold 2,000 shares of the 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 transaction, the executive vice president directly owned 57,653 shares of the company's stock, valued at approximately $6,053,565. This represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 that occurred on Monday, July 6th. The stock was 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 of the company's stock, valued at $8,045,856. This represents a 2.80% decrease in their ownership of the stock. 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. Over the last three months, insiders sold 9,275 shares of company stock worth $947,833. 0.03% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on SBUX. Stephens initiated coverage on Starbucks in a research note on Thursday, May 14th. They issued an "overweight" rating for the company. JPMorgan Chase & Co. raised their price target on Starbucks from $95.00 to $100.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Evercore upped their price objective on Starbucks from $110.00 to $115.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Wedbush started coverage on Starbucks in a research note on Thursday, May 14th. They issued an "outperform" rating on the stock. Finally, DA Davidson boosted 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. Nineteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Starbucks currently has an average rating of "Moderate Buy" and a consensus target price of $108.92.

Starbucks Price Performance

Shares of Starbucks stock opened at $106.01 on Monday. Starbucks Corporation has a 1 year low of $77.99 and a 1 year high of $108.88. The firm's 50-day moving average is $102.43 and its two-hundred day moving average is $97.15. The stock has a market cap of $120.82 billion, a price-to-earnings ratio of 80.31, a PEG ratio of 2.11 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) 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 last year, the firm earned $0.41 EPS. The business'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, equities analysts expect that Starbucks Corporation will post 2.4 earnings per share for the current year.

Starbucks Dividend Announcement

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

Key Starbucks News

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

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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