Starbucks Corporation $SBUX Stake Trimmed by Allspring Global Investments Holdings LLC

Key Points

• Allspring cut its Starbucks stake by 8.8% in the third quarter, selling 157,751 shares. It retained 1.64 million shares valued at about $155.6 million.
• Starbucks reported quarterly EPS of $0.80, beating the $0.72 consensus, while revenue of $9.14 billion fell short of estimates and declined 4.5% year over year.
• The company raised its quarterly dividend from $0.62 to $0.63 per share, equal to a 2.4% yield at the cited share price; its payout ratio stands at 114.03%.

Allspring Global Investments Holdings LLC decreased its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 8.8% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,640,447 shares of the coffee company's stock after selling 157,751 shares during the quarter. Allspring Global Investments Holdings LLC owned about 0.14% of Starbucks worth $155,646,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. Hager Investment Management Services LLC increased its position in shares of Starbucks by 50.2% during the 3rd quarter. Hager Investment Management Services LLC now owns 11,326 shares of the coffee company's stock valued at $1,064,000 after purchasing an additional 3,783 shares during the last quarter. University of Texas Texas AM Investment Management Co. lifted its position in Starbucks by 96.9% in the third quarter. University of Texas Texas AM Investment Management Co. now owns 1,154 shares of the coffee company's stock worth $108,000 after buying an additional 568 shares during the last quarter. M Holdings Securities Inc. purchased a new position in Starbucks during the third quarter worth $793,000. Avantax Planning Partners Inc. boosted its stake in Starbucks by 158.7% during the third quarter. Avantax Planning Partners Inc. now owns 8,181 shares of the coffee company's stock worth $769,000 after buying an additional 5,019 shares during the period. Finally, Brighton Jones LLC boosted its stake in Starbucks by 1.9% during the third quarter. Brighton Jones LLC now owns 216,068 shares of the coffee company's stock worth $20,302,000 after buying an additional 3,979 shares during the period. Institutional investors own 72.29% of the company's stock.

Starbucks Price Performance

SBUX opened at $105.41 on Monday. The business has a fifty day moving average of $99.15 and a 200 day moving average of $100.05. The stock has a market cap of $120.17 billion, a P/E ratio of 47.70, a PEG ratio of 1.74 and a beta of 1.01. Starbucks Corporation has a 52-week low of $81.76 and a 52-week high of $111.50.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Thursday, October 29th. The coffee company reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.08. The business had revenue of $9.14 billion for the quarter, compared to analyst estimates of $9.22 billion. Starbucks had a negative return on equity of 38.61% and a net margin of 6.66%. The business's revenue was down 4.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.52 earnings per share. Equities analysts anticipate 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. Shareholders of record on Friday, November 13th will be given a $0.63 dividend. This is a positive change from Starbucks's previous quarterly dividend of $0.62. The ex-dividend date of this dividend is Friday, November 13th. This represents a $2.52 annualized dividend and a yield of 2.4%. Starbucks's dividend payout ratio is presently 114.03%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Argus boosted their price objective on shares of Starbucks from $112.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Wells Fargo & Company lowered their target price on shares of Starbucks from $125.00 to $120.00 and set an "overweight" rating for the company in a report on Wednesday, October 21st. Jefferies Financial Group lifted their price target on shares of Starbucks from $95.00 to $101.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Compass Point began coverage on shares of Starbucks in a research note on Monday, August 3rd. They set a "buy" rating for the company. Finally, Citigroup upped their price target on shares of Starbucks from $104.00 to $107.00 and gave the company a "neutral" rating in a report on Monday, November 2nd. Twenty-one equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $108.89.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: U.S. comparable sales rose 7.7% in fiscal Q4, driven by stronger customer traffic and average tickets—evidence of improving business momentum. Starbucks' U.S. Comps Jump 7.7%: Can Traffic Momentum Last?
• Neutral Sentiment: UBS raised its price target from $105 to $110, implying 4.4% upside from the cited price, but maintained a “neutral” rating—suggesting measured rather than strong conviction. UBS Group stock recommendations
• Negative Sentiment: Investors may question the durability of the sales rebound: transaction growth is slowing, and store closures contributed to the comparison, potentially making the reported improvement harder to sustain. Starbucks' U.S. Comps Jump 7.7%: Can Traffic Momentum Last?

Insider Buying and Selling

In other news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $105.60, for a total transaction of $235,382.40. Following the transaction, the chief executive officer directly owned 73,149 shares of the company's stock, valued at approximately $7,724,534.40. This trade represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 4,458 shares of company stock valued at $449,684. 0.03% of the stock is owned by corporate insiders.

Starbucks Profile

Starbucks Corporation is a global coffee company that roasts, markets and sells coffee and other beverages, along with food and related merchandise. Its offerings include brewed coffee, espresso-based drinks, teas and packaged coffee products.

The company serves customers through company-operated and licensed stores, as well as through retail and food-service partnerships. Its stores also sell items such as mugs and coffee-making equipment.

Founded in Seattle in 1971, Starbucks operates in North America and international markets, including China.

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