Starbucks Corporation $SBUX Stake Trimmed by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group Inc. trimmed its Starbucks stake by 5.2% in the first quarter, selling 143,547 shares and ending with 2.6 million shares valued at about $233.4 million.
• Starbucks reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion, up 8.8% year over year. The company also issued FY2026 EPS guidance of 2.25 to 2.45.
• The company declared a quarterly dividend of $0.62 per share, payable August 28, and its stock has been trading near its 52-week high amid optimism around AI-driven cost cuts and operational improvements.

Sumitomo Mitsui Trust Group Inc. lessened its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 5.2% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 2,605,461 shares of the coffee company's stock after selling 143,547 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.23% of Starbucks worth $233,423,000 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 SBUX. Rachor Investment Advisory Services LLC purchased a new stake in shares of Starbucks in the fourth quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new position in Starbucks during the fourth quarter valued at $25,000. Phillip James Consulting Co. acquired a new position in Starbucks during the fourth quarter valued at $25,000. Entrust Financial LLC purchased a new stake in Starbucks in the 4th quarter worth about $26,000. Finally, Kelleher Financial Advisors acquired a new stake in Starbucks during the 3rd quarter worth about $27,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is reportedly developing in-house AI tools that could replace third-party software, potentially lowering its software and operating expenses and improving margins. Starbucks Stock Rises Amid In-House Software Push
• Positive Sentiment: Investors are also encouraged by the idea that Starbucks can use AI to reduce reliance on outside vendors, supporting a broader cost-reduction initiative and possible earnings leverage over time. Starbucks Targets $400 Million Software Spend With AI Shift
• Positive Sentiment: Recent commentary has also kept focus on Starbucks’ improving traffic, loyalty growth, and turnaround efforts, which has helped sustain bullish sentiment near the stock’s recent highs. Starbucks Near Its 52-Week High: Can the Stock Sustain the Rally?
• Neutral Sentiment: CEO Brady Brewer sold shares under a pre-arranged 10b5-1 plan. The sale is not necessarily a negative signal, but investors may still note the insider transaction. SEC Form 4 filing
• Neutral Sentiment: Starbucks remains near its 52-week high after a strong run, which can attract momentum buyers but also raises valuation concerns for some investors. Starbucks Near Its 52-Week High: Can the Stock Sustain the Rally?

Starbucks Stock Performance

Shares of NASDAQ SBUX opened at $106.41 on Friday. The business has a 50 day simple moving average of $102.42 and a 200 day simple moving average of $97.01. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $108.88. The stock has a market cap of $121.28 billion, a price-to-earnings ratio of 80.61, a PEG ratio of 2.06 and a beta of 0.98.

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, analysts predict that Starbucks Corporation will post 2.4 EPS for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks's payout ratio is presently 187.88%.

Insiders Place Their Bets

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer directly owned 77,364 shares of the company's stock, valued at $8,045,856. This represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the firm's stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the transaction, the executive vice president owned 57,653 shares in the company, valued at approximately $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. 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. Insiders sold 9,275 shares of company stock valued at $947,833 over the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

SBUX has been the topic of several research analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Starbucks in a research note on Wednesday, April 22nd. Jefferies Financial Group began coverage on shares of Starbucks in a report on Thursday, May 14th. They set a "buy" rating for the company. Royal Bank Of Canada downgraded shares of Starbucks from a "sector perform" rating to a "positive" rating in a research report on Thursday, May 14th. JPMorgan Chase & Co. upped their price objective on shares of Starbucks from $95.00 to $100.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Finally, Morgan Stanley upgraded shares of Starbucks from an "overweight" rating to an "overweight" rating in a research report on Thursday, May 14th. Nineteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $108.92.

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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