Strs Ohio Decreases Stake in Starbucks Corporation $SBUX

Key Points

• Strs Ohio reduced its Starbucks stake by 15.4% in the first quarter, selling 44,024 shares and leaving it with 242,722 shares worth about $21.7 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 declared a quarterly dividend of $0.62 per share, while analysts currently rate the stock a “Moderate Buy” with a consensus price target of $108.92.

Strs Ohio lessened its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 15.4% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 242,722 shares of the coffee company's stock after selling 44,024 shares during the quarter. Strs Ohio's holdings in Starbucks were worth $21,745,000 as of its most recent filing with the SEC.

Several other institutional investors also recently bought and sold shares of the business. Norges Bank acquired a new position in shares of Starbucks during the 4th quarter valued at $1,232,650,000. Capital Research Global Investors boosted its position in shares of Starbucks by 11.4% in the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company's stock worth $7,229,968,000 after buying an additional 8,774,198 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in shares of Starbucks by 65.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company's stock valued at $1,637,704,000 after buying an additional 7,725,547 shares in the last quarter. Capital World Investors raised its holdings in shares of Starbucks by 9.0% during the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after buying an additional 7,007,268 shares during the period. Finally, Corient Private Wealth LLC raised its holdings in shares of Starbucks by 146.6% during the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock valued at $553,201,000 after buying an additional 3,596,014 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Stock Performance

Shares of Starbucks stock opened at $104.27 on Friday. Starbucks Corporation has a 1 year low of $77.99 and a 1 year high of $108.88. The firm's 50-day simple moving average is $101.97 and its 200-day simple moving average is $96.45. The firm has a market cap of $118.84 billion, a PE ratio of 78.99, a price-to-earnings-growth ratio of 2.07 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly 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. The business had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The company's revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period 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, equities analysts predict that Starbucks Corporation will post 2.4 earnings per share for the current year.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks's dividend payout ratio is currently 187.88%.

Insider Buying and Selling at Starbucks

In other Starbucks news, EVP Sara Kelly sold 2,000 shares of the stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total transaction of $210,000.00. Following the sale, the executive vice president directly owned 57,653 shares of the company's stock, valued at approximately $6,053,565. This represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a document filed 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. Also, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was 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 in the company, valued at approximately $8,548,198.79. The trade was a 2.66% 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 have sold 8,687 shares of company stock worth $863,707 over the last 90 days. 0.03% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Stephens assumed coverage on Starbucks in a report on Thursday, May 14th. They issued an "overweight" rating for the company. BTIG Research downgraded shares of Starbucks from a "buy" rating to a "neutral" rating in a research note on Thursday, May 14th. Piper Sandler reissued an "overweight" rating and issued a $110.00 price objective on shares of Starbucks in a research report on Wednesday, April 29th. The Goldman Sachs Group cut Starbucks from a "neutral" rating to a "neutral" rating in a research note on Thursday, May 14th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Starbucks in a report on Wednesday, April 22nd. Nineteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price 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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