Norges Bank Makes New $1.23 Billion Investment in Starbucks Corporation $SBUX

Key Points

• Norges Bank opened a new position in Starbucks during the fourth quarter, buying 14.6 million shares worth about $1.23 billion and ending with roughly 1.28% ownership of the company.
• Starbucks’ operating outlook appears mixed: recent reports say afternoon traffic is improving as its turnaround strategy gains traction, but there are also concerns about an AI inventory tool that was retired after causing operational issues and about sales weakness in South Korea.
• The stock has been under some pressure, trading around $99.16 and down 1.6% in the article, even after Starbucks beat quarterly EPS and revenue estimates and paid its latest $0.62 quarterly dividend.

Norges Bank acquired a new position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 14,637,807 shares of the coffee company's stock, valued at approximately $1,232,650,000. Norges Bank owned about 1.28% of Starbucks at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in SBUX. Brighton Jones LLC increased its stake in Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after acquiring an additional 81,952 shares during the last quarter. Schnieders Capital Management LLC. increased its stake in Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after acquiring an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC bought a new stake in Starbucks during the second quarter worth approximately $288,000. Gamco Investors INC. ET AL increased its stake in Starbucks by 92.8% during the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock worth $479,000 after acquiring an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC increased its stake in Starbucks by 7.6% during the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock worth $10,328,000 after acquiring an additional 7,978 shares during the last quarter. 72.29% of the stock is owned by institutional investors.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks said afternoon traffic is rising after its strategy shift, with visits after 2 p.m. improving as the company pushes new products and efforts to bring customers back into stores. Starbucks says afternoon traffic is rising as turnaround starts to take hold
• Positive Sentiment: Another report echoed the improving traffic trend, suggesting Starbucks’ turnaround plan may be starting to lift demand during traditionally slower afternoon hours. Starbucks sees a lift in afternoon traffic after a strategy shift
• Positive Sentiment: Starbucks received a Zacks Strong Buy income-stock mention, which may help reinforce the bullish view that the stock remains attractive to some investors. Best Income Stocks to Buy for May 28th
• Neutral Sentiment: Alsea launched the first Starbucks Smart Lounge in Chile, expanding the brand’s footprint and adding a work-and-meeting format that could support future international growth. Alsea launches first Starbucks Smart Lounge in Chile
• Neutral Sentiment: Starbucks’ presentation at Bernstein’s Strategic Decisions Conference likely kept investors focused on management’s turnaround messaging, but it did not introduce a clearly new catalyst. Starbucks Corporation (SBUX) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript
• Negative Sentiment: Reports that Starbucks quietly retired an AI inventory agent after it miscounted stock and slowed baristas may raise questions about the effectiveness of some of its operational technology investments. Starbucks quietly retired its AI agent just months after deployment after it hallucinated coffee shop inventories and slowed down baristas
• Negative Sentiment: Separate coverage on South Korea highlighted a sales drop and backlash tied to a marketing controversy, underscoring ongoing brand and international execution risks. Starbucks Suffers Significant Drop in Sales in South Korea
• Negative Sentiment: Another article said Starbucks’ South Korea backlash is testing international growth and governance controls, which could keep pressure on sentiment if the issue spreads or worsens. Starbucks South Korea Backlash Tests International Growth And Governance Controls

Starbucks Stock Down 1.6%

Shares of NASDAQ:SBUX opened at $99.16 on Friday. Starbucks Corporation has a 52-week low of $77.99 and a 52-week high of $108.88. The stock has a market cap of $113.01 billion, a P/E ratio of 75.12, a price-to-earnings-growth ratio of 1.96 and a beta of 1.01. The business's 50 day moving average is $99.03 and its 200 day moving average is $93.77.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping 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 company had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.17 billion. During the same quarter in the prior year, the firm earned $0.41 earnings per share. Starbucks's revenue was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, sell-side analysts anticipate that Starbucks Corporation will post 2.42 EPS for the current fiscal year.

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were paid a $0.62 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.48 annualized dividend and a yield of 2.5%. Starbucks's dividend payout ratio is 187.88%.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Robert W. Baird upped their target price on Starbucks from $112.00 to $117.00 and gave the company an "outperform" rating in a research note on Wednesday, April 29th. BTIG Research cut Starbucks from a "buy" rating to a "neutral" rating in a research note on Thursday, May 14th. JPMorgan Chase & Co. upped their target price on Starbucks from $95.00 to $100.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Scotiabank cut Starbucks from a "market perform" rating to an "underperform" rating in a research note on Thursday, May 14th. Finally, Citigroup upped their target price on Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Starbucks has a consensus rating of "Moderate Buy" and a consensus price target of $107.48.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the 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 of the company's stock, valued at $8,548,198.79. This represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, EVP Sara Kelly sold 2,500 shares of the stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the transaction, the executive vice president directly owned 59,609 shares in the company, valued at approximately $5,789,226.08. This trade represents a 4.03% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 11,187 shares of company stock worth $1,111,085. 0.03% of the stock is owned by insiders.

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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