Private Advisor Group LLC Trims Position in Starbucks Corporation $SBUX

Key Points

• Private Advisor Group LLC cut its Starbucks stake by 15% in the first quarter, leaving it with 108,441 shares valued at about $9.7 million.
• Analyst sentiment remains positive overall: Starbucks carries a Moderate Buy rating, with an average price target of $108.92, though some firms have mixed views and one set a bearish target of $84.
• Starbucks recently topped quarterly expectations, posting $0.50 EPS on $9.53 billion in revenue, and it also announced a quarterly dividend of $0.62 per share.

Private Advisor Group LLC lowered its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 15.0% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 108,441 shares of the coffee company's stock after selling 19,184 shares during the quarter. Private Advisor Group LLC's holdings in Starbucks were worth $9,715,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Rachor Investment Advisory Services LLC acquired a new position in shares of Starbucks in the fourth quarter valued at approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks during the fourth quarter worth $25,000. Phillip James Consulting Co. purchased a new position in Starbucks in the 4th quarter valued at $25,000. Entrust Financial LLC purchased a new position in Starbucks in the 4th quarter valued at $26,000. Finally, Tucker Asset Management LLC acquired a new position in Starbucks in the 4th quarter valued at $27,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Analyst Upgrades and Downgrades

SBUX has been the subject of several recent analyst reports. Evercore raised their target price on shares of Starbucks from $110.00 to $115.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. UBS Group lowered shares of Starbucks from a "neutral" rating to a "neutral" rating in a research note on Thursday, May 14th. Wolfe Research assumed coverage on shares of Starbucks in a report on Monday, March 9th. They set a "peer perform" rating for the company. Citizens Jmp initiated coverage on Starbucks in a report on Monday, March 30th. They issued an "underperform" rating and a $84.00 price objective on the stock. Finally, Wedbush began coverage on Starbucks in a research report on Thursday, May 14th. They set an "outperform" rating on the stock. Nineteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $108.92.

Insiders Place Their Bets

In other news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction 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 owned 81,559 shares in the company, valued at $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 2,000 shares of Starbucks stock in a transaction 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. This trade represents a 3.35% 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. In the last 90 days, insiders sold 7,046 shares of company stock valued at $716,017. Company insiders own 0.03% of the company's stock.

Starbucks Stock Performance

SBUX stock opened at $104.27 on Monday. The firm has a 50 day moving average of $101.97 and a 200-day moving average of $96.53. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $108.88. The company has a market cap of $118.84 billion, a price-to-earnings ratio of 78.99, a PEG ratio of 2.07 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, topping 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 business 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 posted $0.41 EPS. The company'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. Sell-side analysts forecast that Starbucks Corporation will post 2.4 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a yield of 2.4%. Starbucks's dividend payout ratio is 187.88%.

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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