Saratoga Research & Investment Management Has $49.98 Million Stock Position in Starbucks Corporation $SBUX

Key Points

• Saratoga Research & Investment Management reduced its Starbucks stake by 4.6% in the fourth quarter, but still held 593,466 shares valued at about $49.98 million. Starbucks remains about 2.6% of the firm’s portfolio.
• Starbucks reported a stronger-than-expected quarterly update, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion expected. The company also reaffirmed FY2026 EPS guidance of 2.25 to 2.45.
• The company announced a quarterly dividend of $0.62 per share, payable May 29, which annualizes to $2.48 and a 2.3% yield. Meanwhile, analysts remain broadly constructive, with a consensus rating of Moderate Buy and an average price target of $107.48.

Saratoga Research & Investment Management trimmed its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 4.6% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 593,466 shares of the coffee company's stock after selling 28,442 shares during the quarter. Starbucks makes up approximately 2.6% of Saratoga Research & Investment Management's portfolio, making the stock its 15th largest position. Saratoga Research & Investment Management owned approximately 0.05% of Starbucks worth $49,976,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Collier Financial purchased a new stake in shares of Starbucks in the third quarter worth approximately $25,000. Rachor Investment Advisory Services LLC purchased a new stake in shares of Starbucks in the fourth quarter worth approximately $25,000. Y.D. More Investments Ltd purchased a new stake in shares of Starbucks in the third quarter worth approximately $26,000. JPL Wealth Management LLC purchased a new stake in shares of Starbucks in the third quarter worth approximately $27,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of Starbucks in the third quarter worth approximately $27,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Starbucks

In other Starbucks news, 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 transaction of $242,800.00. Following the transaction, the executive vice president owned 59,609 shares in the company, valued at $5,789,226.08. This trade represents a 4.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer owned 81,559 shares in the company, valued at approximately $8,548,198.79. This trade represents 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. In the last ninety days, insiders have sold 11,187 shares of company stock worth $1,111,085. Insiders own 0.03% of the company's stock.

Starbucks Stock Performance

Shares of SBUX opened at $106.82 on Friday. The firm has a market cap of $121.74 billion, a PE ratio of 80.92, a PEG ratio of 2.16 and a beta of 1.01. The firm's 50 day moving average price is $98.11 and its 200 day moving average price is $92.36. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $108.88.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share 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 analyst estimates of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The company's revenue for the quarter was up 8.8% on a year-over-year basis. 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, sell-side analysts anticipate that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

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

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Investors appear to like the cost-cutting focus, as the layoffs and office closures are intended to improve efficiency, support margin recovery, and help fund the company’s turnaround strategy. Reuters article
• Positive Sentiment: Wall Street sentiment also remains supportive, with TD Cowen upgrading Starbucks to Buy and raising its price target, citing improving sales drivers, margin recovery, and multiple tangible catalysts for the comeback story. Analyst upgrade article
• Neutral Sentiment: The restructuring comes with a sizable estimated $400 million charge, which could weigh on near-term earnings even as management argues the actions will strengthen the business over time. New York Times article
• Neutral Sentiment: Recent trading also reflects a broader re-rating of the stock, which has been pushing toward new highs as investors gain confidence in CEO Brian Niccol’s turnaround plan. CNBC article
• Negative Sentiment: The job cuts and office closures also signal that the turnaround is still in progress, and the company may continue to face pressure from restructuring costs and execution risk before the benefits show up in results. Wall Street Journal article

Analysts Set New Price Targets

A number of analysts have recently issued reports on SBUX shares. Scotiabank lowered shares of Starbucks from a "market perform" rating to an "underperform" rating in a research report on Thursday. Tigress Financial started coverage on shares of Starbucks in a research report on Wednesday, April 15th. They issued a "buy" rating and a $122.00 price target for the company. BNP Paribas Exane started coverage on shares of Starbucks in a research report on Thursday. They issued an "underperform" rating for the company. JPMorgan Chase & Co. increased their price target on shares of Starbucks from $95.00 to $100.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Finally, UBS Group lowered shares of Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday. Twenty equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Starbucks has an average rating of "Moderate Buy" and a consensus price target of $107.48.

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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