Jefferies Financial Group Inc. Purchases 45,794 Shares of Starbucks Corporation $SBUX

Key Points

• Jefferies Financial Group boosted its Starbucks stake by 94.5% in the fourth quarter, adding 45,794 shares and bringing its total holding to 94,260 shares valued at about $7.94 million.
• Starbucks faces fresh operational scrutiny after abandoning its AI inventory tool due to counting errors and stocking problems, which suggests the technology rollout has been problematic.
• The company reported better-than-expected quarterly results, with EPS of $0.50 and revenue of $9.53 billion, while also reaffirming FY2026 EPS guidance of $2.25 to $2.45.

Jefferies Financial Group Inc. increased its position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 94.5% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 94,260 shares of the coffee company's stock after acquiring an additional 45,794 shares during the quarter. Jefferies Financial Group Inc.'s holdings in Starbucks were worth $7,938,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of SBUX. Vanguard Group Inc. increased its stake in Starbucks by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company's stock valued at $9,634,523,000 after purchasing an additional 971,773 shares in the last quarter. Capital Research Global Investors increased its stake 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 valued at $7,229,968,000 after purchasing an additional 8,774,198 shares in the last quarter. Capital World Investors increased its stake in Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company's stock valued at $6,575,430,000 after purchasing an additional 1,462,874 shares in the last quarter. Capital International Investors increased its stake in Starbucks by 22.5% during the 3rd quarter. Capital International Investors now owns 14,691,772 shares of the coffee company's stock valued at $1,243,104,000 after purchasing an additional 2,699,479 shares in the last quarter. Finally, Invesco Ltd. increased its stake in Starbucks by 6.5% during the 3rd quarter. Invesco Ltd. now owns 13,590,494 shares of the coffee company's stock valued at $1,149,756,000 after purchasing an additional 832,540 shares in the last quarter. Institutional investors own 72.29% of the company's stock.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Negative Sentiment: Starbucks abandoned its AI inventory tool after finding counting errors and mislabeled items, suggesting a setback in its technology rollout and potential operational inefficiency. Starbucks scraps AI inventory tool after nine months
• Negative Sentiment: Reuters-based reports say the company paused the tool after workers reported stocking problems, reinforcing concerns that the AI system was not ready for broad use. Starbucks scraps AI inventory tool across North America: Reuters
• Neutral Sentiment: Starbucks also announced it will participate in the Bernstein 42nd Annual Strategic Decisions Conference next week, giving management another opportunity to address the turnaround, cost cuts, and operating changes. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Neutral Sentiment: The company’s latest China joint-venture restructuring is also shifting revenue recognition and improving margins, but that news is more of a longer-term financial reset than a direct same-day stock driver. Starbucks' China JV Shift Reshapes Revenue and Margin Outlook

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer directly owned 81,559 shares of the company's stock, valued at approximately $8,548,198.79. This represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the sale, the executive vice president directly owned 57,653 shares in the company, valued at $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. 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 11,187 shares of company stock worth $1,111,085 over the last three months. 0.03% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Citizens Jmp assumed coverage on shares of Starbucks in a research note on Monday, March 30th. They set an "underperform" rating and a $84.00 price target on the stock. Stifel Nicolaus set a $117.00 price target on shares of Starbucks and gave the company a "buy" rating in a research note on Wednesday, May 6th. Dbs Bank upgraded shares of Starbucks from a "strong sell" rating to a "moderate sell" rating in a research note on Friday, March 20th. Mizuho upped their price target on shares of Starbucks from $86.00 to $95.00 and gave the company a "neutral" rating in a research note on Monday, January 26th. Finally, Jefferies Financial Group assumed coverage on shares of Starbucks in a research note on Thursday, May 14th. They set a "buy" rating on the stock. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Starbucks presently has a consensus rating of "Moderate Buy" and an average price target of $107.48.

Starbucks Price Performance

SBUX stock opened at $103.11 on Monday. The firm's fifty day simple moving average is $98.65 and its 200-day simple moving average is $93.19. The company has a market capitalization of $117.51 billion, a P/E ratio of 78.11, a price-to-earnings-growth ratio of 2.08 and a beta of 1.01. 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 quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.44 by $0.06. The business had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business's revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, sell-side analysts forecast that Starbucks Corporation will post 2.42 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be issued a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, May 15th. Starbucks's dividend payout ratio is 187.88%.

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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