Rational Advisors Inc. Buys Shares of 15,900 Starbucks Corporation $SBUX

Key Points

• Rational Advisors Inc. opened a new position in Starbucks during the fourth quarter, buying 15,900 shares valued at about $1.34 million.
• Starbucks recently posted better-than-expected earnings, with Q1 EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion forecast, while also raising its FY2026 EPS guidance to 2.25–2.45.
• Investor sentiment remains supportive overall: institutional ownership is high at 72.29%, analysts rate the stock a Moderate Buy with an average target price of $107.48, and the company continues returning cash through a $0.62 quarterly dividend.

Rational Advisors Inc. bought a new stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 15,900 shares of the coffee company's stock, valued at approximately $1,339,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Collier Financial acquired a new stake in Starbucks in the 3rd quarter valued at approximately $25,000. Rachor Investment Advisory Services LLC acquired a new stake in Starbucks in the 4th quarter valued at approximately $25,000. Y.D. More Investments Ltd bought a new stake in shares of Starbucks in the 3rd quarter worth approximately $26,000. Entrust Financial LLC bought a new stake in shares of Starbucks in the 4th quarter worth approximately $26,000. Finally, JPL Wealth Management LLC bought a new stake in shares of Starbucks in the 3rd quarter worth approximately $27,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Analysts and market commentators remain constructive on Starbucks’ turnaround, pointing to stronger revenue and earnings trends, improved traffic, and a first clean earnings beat in several quarters. Has Starbucks Reached the Turning Point in Its Turnaround Story?
• Positive Sentiment: Recent coverage highlights bullish sentiment from institutional ownership and analyst price targets that remain above the current trading level, reinforcing confidence in the stock’s longer-term recovery. Smart Money Owns 87% of Starbucks. Should Retail Investors Follow?
• Positive Sentiment: Starbucks’ nostalgia-driven menu strategy is drawing interest, with the company bringing back popular limited-time drinks such as the S’mores Frappuccino to help boost customer engagement and traffic. Starbucks brings back viral drink after 7 years, adds new item
• Neutral Sentiment: Starbucks announced that CEO Brian Niccol will speak at Evercore’s Consumer and Retail Conference next week; the event may provide updates on the turnaround, but the announcement itself is not a major business catalyst. Starbucks to Participate in the 6th Annual Evercore Consumer and Retail Conference
• Neutral Sentiment: Several articles discuss Starbucks’ stock performance versus peers and whether investors should follow the current momentum, but these are commentary pieces rather than new company-specific developments. How Is Starbucks’ Stock Performance Compared to Other Consumer Discretionary Stocks?
• Negative Sentiment: Broader discussion around Starbucks’ nostalgia-heavy menu strategy also reflects lingering concerns that the company may be relying on old favorites to support demand while the turnaround is still incomplete. Starbucks Stock NASDAQ: SBUX Rises Along With Nostalgic Menu Concerns

Starbucks Price Performance

Starbucks stock opened at $95.51 on Wednesday. The company has a market capitalization of $108.85 billion, a PE ratio of 72.36, a price-to-earnings-growth ratio of 1.90 and a beta of 0.98. Starbucks Corporation has a one year low of $77.99 and a one year high of $108.88. The business has a 50 day simple moving average of $99.04 and a 200 day simple moving average of $93.90.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate 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 negative return on equity of 29.24% and a net margin of 3.89%.Starbucks's revenue was up 8.8% on a year-over-year basis. During the same quarter last year, the company earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Equities analysts anticipate that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Friday, May 15th. Starbucks's dividend payout ratio (DPR) is 187.88%.

Insider Activity at Starbucks

In other Starbucks news, EVP Sara Kelly sold 2,500 shares of Starbucks stock in a transaction 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 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Brady Brewer sold 2,229 shares of Starbucks 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. The trade was a 2.66% 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. Insiders have sold a total of 11,187 shares of company stock valued at $1,111,085 in the last 90 days. 0.03% of the stock is owned by corporate insiders.

Analyst Ratings Changes

SBUX has been the subject of a number of research reports. Guggenheim reiterated a "neutral" rating and issued a $97.00 price objective (up from $95.00) on shares of Starbucks in a research report on Wednesday, April 29th. UBS Group downgraded Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Zacks Research upgraded Starbucks from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 15th. DA Davidson raised their price objective on Starbucks from $97.00 to $102.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Finally, Royal Bank Of Canada downgraded Starbucks from a "sector perform" rating to a "positive" rating in a research report on Thursday, May 14th. One research 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 given a Sell rating to the company's stock. According to data from MarketBeat, Starbucks presently has a consensus rating of "Moderate Buy" and an average target price of $107.48.

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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