Starbucks Corporation $SBUX Position Cut by Monte Financial Group LLC

Key Points

• Monte Financial Group cut its Starbucks stake by 33% in the third quarter, selling 17,424 shares and retaining 35,396 shares valued at $3.33 million.
• Analysts’ consensus rating was Hold, with an average price target of $108.74; 21 analysts rated the stock Buy, 15 Hold, and four Sell.
• Starbucks reported quarterly EPS of $0.80, beating estimates, while revenue fell 4.5% year over year and missed expectations. The company raised its quarterly dividend from $0.62 to $0.63 per share.

Monte Financial Group LLC decreased its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 33.0% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 35,396 shares of the coffee company's stock after selling 17,424 shares during the quarter. Monte Financial Group LLC's holdings in Starbucks were worth $3,326,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently bought and sold shares of SBUX. Nykredit A S purchased a new position in Starbucks in the 2nd quarter valued at approximately $29,524,000. Robinhood Asset Management LLC acquired a new position in Starbucks during the second quarter worth $10,187,000. The Manufacturers Life Insurance Company acquired a new position in Starbucks during the second quarter worth $61,404,000. Bank of America Corp DE purchased a new stake in Starbucks during the second quarter worth $1,581,287,000. Finally, Saudi Central Bank boosted its position in Starbucks by 90.0% during the second quarter. Saudi Central Bank now owns 79,751 shares of the coffee company's stock worth $8,150,000 after purchasing an additional 37,779 shares in the last quarter. Institutional investors and hedge funds own 72.29% of the company's stock.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Jefferies Financial Group upped their target price on Starbucks from $95.00 to $101.00 and gave the company a "hold" rating in a report on Thursday, July 30th. DA Davidson reaffirmed a "neutral" rating and set a $110.00 price target on shares of Starbucks in a research note on Friday, October 30th. Sanford C. Bernstein lowered shares of Starbucks from an "outperform" rating to a "market perform" rating in a research report on Monday, August 3rd. Gordon Haskett increased their price objective on shares of Starbucks from $110.00 to $118.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Finally, Seaport Research Partners began coverage on shares of Starbucks in a research note on Wednesday, September 16th. They issued a "neutral" rating on the stock. Twenty-one equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $108.74.

Starbucks Price Performance

Shares of Starbucks stock opened at $106.16 on Friday. Starbucks Corporation has a 1 year low of $81.76 and a 1 year high of $111.50. The company has a market capitalization of $121.02 billion, a P/E ratio of 48.04, a P/E/G ratio of 1.81 and a beta of 1.01. The business has a 50 day moving average price of $99.18 and a 200 day moving average price of $99.99.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Thursday, October 29th. The coffee company reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.72 by $0.08. The firm had revenue of $9.14 billion for the quarter, compared to analysts' expectations of $9.22 billion. Starbucks had a negative return on equity of 38.61% and a net margin of 6.66%. Starbucks's quarterly revenue was down 4.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.52 EPS. As a group, research analysts expect that Starbucks Corporation will post 3.22 EPS for the current fiscal year.

Starbucks Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be given a $0.63 dividend. This is an increase from Starbucks's previous quarterly dividend of $0.62. This represents a $2.52 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, November 13th. Starbucks's dividend payout ratio (DPR) is currently 114.03%.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Deutsche Bank expressed confidence in Starbucks’ growth prospects, offering support for the company’s recovery narrative. Starbucks Shows Confidence in Growth Prospects, Deutsche Bank Says
• Positive Sentiment: The latest quarter showed adjusted momentum: EPS rose to $0.80 from $0.52 a year earlier and beat estimates. An article characterizes the results as evidence the sales slowdown may be easing, though revenue was weaker. Starbucks Served Up a 54% Earnings Jump
• Positive Sentiment: Stephens analysts’ renewed attention to SBUX adds to the recent positive analyst focus, although the report listing provides no details on the action. Starbucks Stock Picked Up by Analysts at Stephens
• Neutral Sentiment: Starbucks is promoting its holiday menu and seasonal campaign, which could help attract customers, but the coverage does not indicate its likely sales impact. Starbucks is ready for the holidays with its new seasonal menu
• Negative Sentiment: Management’s fiscal 2027 guidance calls for about a 1% consolidated revenue decline, largely reflecting the China licensing transition and a calendar effect. The shift changes how China revenue is recorded, even as the company pursues cost savings and margin improvements. Is China Licensing Shift Altering The Investment Case For Starbucks?

Insider Activity

In related news, CEO Brady Brewer sold 588 shares of the stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $100.00, for a total transaction of $58,800.00. Following the sale, the chief executive officer owned 70,920 shares of the company's stock, valued at $7,092,000. This trade represents a 0.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 4,458 shares of company stock valued at $449,684 in the last quarter. 0.03% of the stock is owned by corporate insiders.

Starbucks Profile

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.

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