Morningstar Investment Management LLC Sells 49,175 Shares of Starbucks Corporation $SBUX

Key Points

• Morningstar Investment Management sharply reduced its Starbucks stake in the fourth quarter, selling 49,175 shares and cutting its holdings by 93.7% to 3,294 shares worth about $277,000.
• Starbucks reported stronger-than-expected quarterly results, with EPS of $0.50 topping estimates of $0.44 and revenue of $9.53 billion beating forecasts; revenue also rose 8.8% year over year.
• The company declared a quarterly dividend of $0.62 per share, and analysts remain broadly positive with a consensus rating of “Moderate Buy” and an average target price of $107.48.

Morningstar Investment Management LLC lessened its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 93.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 3,294 shares of the coffee company's stock after selling 49,175 shares during the period. Morningstar Investment Management LLC's holdings in Starbucks were worth $277,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Collier Financial bought a new position in Starbucks in the third quarter valued at about $25,000. Rachor Investment Advisory Services LLC bought a new position in Starbucks in the fourth quarter valued at about $25,000. Y.D. More Investments Ltd bought a new position in Starbucks in the third quarter valued at about $26,000. Entrust Financial LLC bought a new position in Starbucks in the fourth quarter valued at about $26,000. Finally, Tucker Asset Management LLC bought a new position in Starbucks in the fourth quarter valued at about $27,000. Institutional investors own 72.29% of the company's stock.

Starbucks Stock Performance

Shares of SBUX stock opened at $103.11 on Tuesday. The business's 50-day moving average price is $98.71 and its 200-day moving average price is $93.35. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $108.88. The firm has a market capitalization of $117.51 billion, a price-to-earnings ratio of 78.11, a PEG ratio of 2.08 and a beta of 1.01.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly 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 firm had revenue of $9.53 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same period last year, the firm posted $0.41 earnings per share. 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, sell-side analysts predict that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be paid a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, May 15th. Starbucks's dividend payout ratio (DPR) is presently 187.88%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on SBUX shares. Wedbush started coverage on Starbucks in a research report on Thursday, May 14th. They issued an "outperform" rating on the stock. Barclays set a $116.00 target price on Starbucks and gave the company an "overweight" rating in a research report on Friday, January 30th. The Goldman Sachs Group cut Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Citigroup lifted their target price on Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Finally, Stifel Nicolaus set a $117.00 target price on Starbucks and gave the company a "buy" rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Starbucks presently has an average rating of "Moderate Buy" and a consensus target price of $107.48.

Insider Transactions at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of Starbucks stock in a transaction that occurred on 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 $6,053,565. The trade was 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 Starbucks stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the transaction, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. This represents a 2.66% 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. Insiders have sold 11,187 shares of company stock worth $1,111,085 over the last three months. Insiders own 0.03% of the company's stock.

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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