NewEdge Wealth LLC Decreases Holdings in Starbucks Corporation $SBUX

Key Points

• NewEdge Wealth LLC cut its Starbucks stake by 29% in the fourth quarter, leaving it with 58,401 shares valued at about $4.9 million.
• Starbucks reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion estimated. Revenue rose 8.8% year over year, and the company also provided FY2026 EPS guidance of 2.25 to 2.45.
• The company announced a quarterly dividend of $0.62 per share, payable May 29, for an annualized yield of 2.3%. Insider selling also continued, including trades by EVP Sara Kelly and CEO Brady Brewer.

NewEdge Wealth LLC trimmed its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 29.0% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 58,401 shares of the coffee company's stock after selling 23,871 shares during the period. NewEdge Wealth LLC's holdings in Starbucks were worth $4,918,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of SBUX. Capital Research Global Investors lifted its holdings 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 buying an additional 8,774,198 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in shares of Starbucks by 146.6% in the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock valued at $553,201,000 after purchasing an additional 3,596,014 shares during the last quarter. Capital International Investors lifted its holdings in shares of Starbucks by 22.5% in 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 during the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Starbucks by 80.6% in the 3rd quarter. Ameriprise Financial Inc. now owns 5,105,164 shares of the coffee company's stock valued at $433,923,000 after purchasing an additional 2,277,792 shares during the last quarter. Finally, Capital World Investors lifted its holdings in shares of Starbucks by 1.9% in 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 during the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Up 0.8%

Shares of SBUX stock opened at $105.74 on Tuesday. The stock has a market capitalization of $120.51 billion, a PE ratio of 80.11, a price-to-earnings-growth ratio of 2.12 and a beta of 1.01. Starbucks Corporation has a 52-week low of $77.99 and a 52-week high of $108.04. The stock's 50-day moving average price is $97.36 and its 200 day moving average price is $91.82.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly 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. The firm had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm's revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Analysts expect that Starbucks Corporation will post 2.41 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be given a dividend of $0.62 per share. The ex-dividend date is Friday, May 15th. This represents a $2.48 annualized dividend and a yield of 2.3%. Starbucks's payout ratio is presently 187.88%.

Insider Activity at Starbucks

In other Starbucks news, EVP Sara Kelly sold 2,500 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $242,800.00. Following the transaction, the executive vice president owned 59,609 shares in the company, valued at approximately $5,789,226.08. The trade was a 4.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Brady Brewer sold 2,229 shares of the business's 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 transaction, the chief executive officer owned 81,559 shares in the company, valued at $8,548,198.79. The trade was a 2.66% decrease in their position. 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 a total of 11,187 shares of company stock worth $1,111,085 in the last quarter. 0.03% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SBUX. Guggenheim reissued a "neutral" rating and issued a $97.00 target price (up from $95.00) on shares of Starbucks in a report on Wednesday, April 29th. Zacks Research raised Starbucks from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 27th. Bank of America set a $114.00 target price on Starbucks in a report on Wednesday, January 21st. Citizens Jmp began coverage on Starbucks in a report on Monday, March 30th. They issued an "underperform" rating and a $84.00 target price for the company. Finally, William Blair raised Starbucks from a "market perform" rating to an "outperform" rating in a report on Thursday, January 22nd. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Starbucks presently has an average rating of "Moderate Buy" and an average price target of $107.00.

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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