Starbucks Corporation $SBUX Shares Sold by Diamond Hill Capital Management Inc.

Key Points

• Diamond Hill Capital Management cut its Starbucks stake by 7.6% in the fourth quarter, selling 227,000 shares and leaving it with 2.77 million shares worth about $233.4 million.
• Starbucks is seeing mixed recent developments: it will host a fireside chat at an upcoming Bernstein conference and completed a cash tender offer to improve its debt profile, but it is also cutting another 300 jobs and booking about $400 million in restructuring charges.
• Despite the turnaround costs, Starbucks recently beat quarterly expectations with $0.50 EPS on $9.53 billion in revenue, while analysts currently rate the stock a consensus Moderate Buy with a $107.48 price target.

Diamond Hill Capital Management Inc. decreased its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 7.6% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,771,343 shares of the coffee company's stock after selling 227,000 shares during the quarter. Diamond Hill Capital Management Inc. owned approximately 0.24% of Starbucks worth $233,375,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of SBUX. Brighton Jones LLC grew its position in shares of Starbucks by 86.5% in the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock valued at $16,126,000 after purchasing an additional 81,952 shares during the period. Schnieders Capital Management LLC. boosted its position in Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after acquiring an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC acquired a new position in Starbucks during the second quarter worth about $288,000. Gamco Investors INC. ET AL boosted its position in Starbucks by 92.8% during the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock worth $479,000 after acquiring an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its position in Starbucks by 7.6% during the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock worth $10,328,000 after acquiring an additional 7,978 shares during the last quarter. 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: Starbucks announced CEO Brian Niccol and CFO Cathy Smith will host a fireside chat at the Bernstein 42nd Annual Strategic Decisions Conference on May 28, giving investors another opportunity to hear updated strategy and turnaround progress. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Positive Sentiment: Starbucks completed a cash tender offer to refine its debt profile, a move that can improve financial flexibility and strengthen the balance sheet. Starbucks Completes Cash Tender Offer, Refines Debt Profile
• Neutral Sentiment: Starbucks is drawing attention for its summer menu rollout and new promotions, which could help seasonal traffic but are not yet a clear earnings catalyst. Starbucks drops another summer surprise as competition heats up
• Neutral Sentiment: Analyst-style coverage comparing Starbucks to retail and wholesale peers is mostly informational and does not appear to be driving a major stock-specific move. Starbucks' China JV Shift Reshapes Revenue and Margin Outlook
• Negative Sentiment: Starbucks said it is cutting another 300 jobs and taking about $400 million in restructuring charges as part of a $2 billion cost-reduction push, highlighting the cost of its turnaround. Starbucks Cuts Another 300 Jobs Amid $2 Billion Cost Reduction Push
• Negative Sentiment: Environmental reporting alleging Starbucks’ “widely recyclable” cold cups often end up in trash could hurt brand perception and invite more criticism around sustainability claims. Widely Recyclable Cold Cups Seldom Reach Recycling, Study Finds, and Starbucks Stock Pays the Price
• Negative Sentiment: Reports that Starbucks’ China JV shift will reduce reported revenue in China, even if it boosts margins and adds cash, may pressure near-term sales expectations. Starbucks' China JV Shift Reshapes Revenue and Margin Outlook

Analysts Set New Price Targets

A number of research firms recently weighed in on SBUX. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Starbucks in a research report on Wednesday, April 29th. The Goldman Sachs Group lowered shares of Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Morgan Stanley upgraded shares of Starbucks from an "overweight" rating to an "overweight" rating in a research report on Thursday, May 14th. Citigroup boosted their price target on shares of Starbucks from $99.00 to $101.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Finally, Tigress Financial began coverage on shares of Starbucks in a research report on Wednesday, April 15th. They set a "buy" rating and a $122.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $107.48.

Insider Transactions at Starbucks

In other news, EVP Sara Kelly sold 2,500 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total value of $242,800.00. Following the sale, the executive vice president directly owned 59,609 shares of the company's stock, valued at approximately $5,789,226.08. The trade was a 4.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Brady Brewer sold 2,229 shares of the business's 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 sale, the chief executive officer directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,187 shares of company stock worth $1,111,085 over the last ninety days. 0.03% of the stock is owned by insiders.

Starbucks Price Performance

Shares of SBUX stock opened at $104.13 on Friday. The firm's 50-day moving average is $98.62 and its two-hundred day moving average is $93.03. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $108.88. The company has a market capitalization of $118.68 billion, a PE ratio of 78.89, a price-to-earnings-growth ratio of 2.15 and a beta of 1.01.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping 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 company had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. During the same period in the previous year, the firm earned $0.41 earnings per share. Starbucks's quarterly 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 2.42 EPS for the current year.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a yield of 2.4%. Starbucks's 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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