Motley Fool Asset Management LLC Purchases 27,497 Shares of Starbucks Corporation $SBUX

Key Points

• Motley Fool Asset Management increased its Starbucks stake by 35.1% in the fourth quarter, buying 27,497 shares and bringing its total holding to 105,790 shares valued at about $8.9 million.
• Wall Street remains constructive on Starbucks, with several firms raising price targets and the stock carrying a consensus Moderate Buy rating and average target price of $107.48.
• Starbucks reported stronger-than-expected quarterly results, posting EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion expected, while also maintaining a quarterly dividend of $0.62 per share.

Motley Fool Asset Management LLC raised its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 35.1% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 105,790 shares of the coffee company's stock after purchasing an additional 27,497 shares during the period. Motley Fool Asset Management LLC's holdings in Starbucks were worth $8,909,000 as of its most recent filing with the SEC.

Other large investors have also recently bought and sold shares of the company. Rachor Investment Advisory Services LLC bought a new stake in Starbucks in the fourth quarter valued at approximately $25,000. Y.D. More Investments Ltd bought a new stake in Starbucks in the third quarter valued at approximately $26,000. Entrust Financial LLC bought a new stake in shares of Starbucks during the fourth quarter worth $26,000. JPL Wealth Management LLC bought a new stake in shares of Starbucks during the third quarter worth $27,000. Finally, Kelleher Financial Advisors bought a new stake in shares of Starbucks during the third quarter worth $27,000. Institutional investors own 72.29% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SBUX. Robert W. Baird increased their price objective on shares of Starbucks from $112.00 to $117.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Wells Fargo & Company reissued an "overweight" rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research report on Wednesday, April 29th. Stifel Nicolaus set a $117.00 price objective on shares of Starbucks and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Piper Sandler reissued an "overweight" rating and set a $110.00 price objective on shares of Starbucks in a research report on Wednesday, April 29th. Finally, UBS Group downgraded shares of 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 given a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $107.48.

Starbucks Trading Up 2.7%

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

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.06. The business had revenue of $9.53 billion during 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 firm's revenue for the quarter was up 8.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, equities research analysts forecast that Starbucks Corporation will post 2.42 EPS for the current year.

Starbucks Dividend Announcement

The firm 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. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a yield of 2.5%. Starbucks's dividend payout ratio (DPR) is 187.88%.

Key Starbucks News

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

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction on Tuesday, May 5th. The shares were 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 owned 81,559 shares of the company's stock, valued at approximately $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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 shares were sold at an average price of $105.00, for a total transaction of $210,000.00. Following the completion of the sale, the executive vice president owned 57,653 shares of the company's stock, valued at approximately $6,053,565. This represents a 3.35% 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. In the last ninety days, insiders sold 8,099 shares of company stock valued at $804,907. 0.03% of the stock is owned by insiders.

Starbucks Company 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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