Starbucks Corporation $SBUX Shares Sold by Crawford Investment Counsel Inc.

Key Points

• Crawford Investment Counsel Inc. cut its Starbucks stake by 6.0% in the fourth quarter, selling 11,539 shares and leaving it with 180,582 shares valued at about $15.2 million.
• Starbucks reported strong quarterly results, posting EPS of $0.50 versus the $0.44 estimate and revenue of $9.53 billion, above expectations and up 8.8% year over year.
• Wall Street remains moderately upbeat on the stock, with analysts assigning a consensus “Moderate Buy” rating and an average price target of $107.93, even as some recent insider sales and international brand issues temper sentiment.

Crawford Investment Counsel Inc. trimmed its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 6.0% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 180,582 shares of the coffee company's stock after selling 11,539 shares during the period. Crawford Investment Counsel Inc.'s holdings in Starbucks were worth $15,207,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also modified their holdings of the company. Rachor Investment Advisory Services LLC acquired a new stake in shares of Starbucks in the fourth quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks in the fourth quarter valued at about $25,000. Y.D. More Investments Ltd purchased a new stake in shares of Starbucks in the third quarter valued at about $26,000. Entrust Financial LLC purchased a new stake in shares of Starbucks in the fourth quarter valued at about $26,000. Finally, JPL Wealth Management LLC purchased a new stake in shares of Starbucks in the third quarter valued at about $27,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Price Performance

Shares of SBUX opened at $101.68 on Wednesday. Starbucks Corporation has a 1-year low of $77.99 and a 1-year high of $108.88. The stock has a market cap of $115.88 billion, a PE ratio of 77.03, a P/E/G ratio of 2.00 and a beta of 0.98. The firm has a 50-day simple moving average of $100.72 and a two-hundred day simple moving average of $94.94.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating analysts' consensus estimates of $0.44 by $0.06. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business had revenue of $9.53 billion during the quarter, compared to analysts' expectations of $9.17 billion. During the same period last year, the business earned $0.41 earnings per share. The business's revenue for the quarter was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, sell-side analysts expect that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 15th were given a dividend of $0.62 per share. The ex-dividend date was Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. Starbucks's dividend payout ratio (DPR) is currently 187.88%.

Wall Street Analysts Forecast Growth

SBUX has been the subject of a number of analyst reports. Guggenheim reissued a "neutral" rating and issued a $97.00 price objective (up from $95.00) on shares of Starbucks in a report on Wednesday, April 29th. TD Cowen raised shares of Starbucks from a "hold" rating to a "buy" rating and upped their price objective for the company from $106.00 to $120.00 in a report on Thursday, May 14th. Wedbush initiated coverage on shares of Starbucks in a report on Thursday, May 14th. They issued an "outperform" rating for the company. Citigroup upped their price objective on shares of Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Finally, Morgan Stanley raised shares of Starbucks from an "overweight" rating to an "overweight" rating in a report on Thursday, May 14th. One equities 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. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $107.93.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Some recent analysis says Starbucks is seeing stronger customer traffic thanks to better service, faster operations, and improved store experience, which supports the idea that CEO Brian Niccol’s turnaround plan is starting to gain traction.
• Positive Sentiment: Zacks recently included Starbucks on its list of top income stocks, suggesting some analysts still view the shares favorably despite the near-term noise.
• Neutral Sentiment: Reports that Starbucks plans to open 5,000 smaller-format stores point to a major footprint reset aimed at improving efficiency and adapting to changing customer habits. Starbucks plans 5,000 new stores, but they won’t look the same
• Neutral Sentiment: CEO Brady Brewer’s recent stock sale was small and made under a pre-arranged 10b5-1 plan, so it is unlikely to be a major concern for investors on its own.
• Negative Sentiment: Starbucks Korea is closing all stores early for mandatory history and social sensitivity training after backlash over a marketing campaign, following boycotts, a public apology, and an investigation. The controversy raises brand and sales risk in an important international market. Starbucks Korea to give staff history training after backlash over marketing campaign
• Negative Sentiment: Separate coverage of the South Korea issue suggests the fallout is still weighing on sentiment and could pressure revenue if the boycott persists. Starbucks Korea Shuts Stores Early After Boycott Hits Revenue

Insider Activity at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of Starbucks stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the transaction, the executive vice president owned 57,653 shares in the company, valued at approximately $6,053,565. The trade was a 3.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction 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 $8,548,198.79. This trade represents a 2.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 8,687 shares of company stock valued at $863,707. Insiders own 0.03% of the company's stock.

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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