Summitry LLC Increases Stock Position in Starbucks Corporation $SBUX

Key Points

• Summitry LLC increased its Starbucks stake by 1.7% in the fourth quarter, holding 774,050 shares worth about $65.2 million as of its latest filing.
• Starbucks reported better-than-expected quarterly results, with EPS of $0.50 versus $0.44 expected and revenue of $9.53 billion versus $9.17 billion expected; revenue rose 8.8% year over year.
• The company also declared a quarterly dividend of $0.62 per share, while analysts currently have a consensus Moderate Buy rating and an average price target of $107.48.

Summitry LLC grew its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 1.7% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 774,050 shares of the coffee company's stock after acquiring an additional 12,797 shares during the quarter. Starbucks comprises about 2.7% of Summitry LLC's investment portfolio, making the stock its 14th biggest holding. Summitry LLC owned 0.07% of Starbucks worth $65,183,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Providence Capital Advisors LLC purchased a new stake in shares of Starbucks during the 3rd quarter valued at about $6,099,000. Vanguard Group Inc. lifted its stake in shares of Starbucks by 0.5% in the 3rd quarter. Vanguard Group Inc. now owns 113,438,902 shares of the coffee company's stock worth $9,596,931,000 after purchasing an additional 577,279 shares during the period. Lantz Financial LLC lifted its stake in shares of Starbucks by 346.6% in the 3rd quarter. Lantz Financial LLC now owns 17,833 shares of the coffee company's stock worth $1,509,000 after purchasing an additional 13,840 shares during the period. Envestnet Asset Management Inc. lifted its stake in shares of Starbucks by 10.6% in the 3rd quarter. Envestnet Asset Management Inc. now owns 4,241,131 shares of the coffee company's stock worth $358,800,000 after purchasing an additional 405,331 shares during the period. Finally, Compass Wealth Management LLC lifted its stake in shares of Starbucks by 33.5% in the 3rd quarter. Compass Wealth Management LLC now owns 79,193 shares of the coffee company's stock worth $6,700,000 after purchasing an additional 19,877 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Stock Performance

NASDAQ SBUX opened at $103.11 on Tuesday. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $108.88. The stock has a market cap of $117.51 billion, a price-to-earnings ratio of 78.11, a PEG ratio of 2.08 and a beta of 1.01. The company's 50 day moving average is $98.71 and its two-hundred day moving average is $93.35.

Starbucks (NASDAQ:SBUX - Get Free Report) last released 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 analysts' expectations of $9.17 billion. During the same quarter last year, the business earned $0.41 EPS. The firm's 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 is Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a yield of 2.4%. Starbucks's dividend payout ratio (DPR) is presently 187.88%.

Insider Buying and Selling

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the firm'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 sale, the chief executive officer owned 81,559 shares in the company, valued at approximately $8,548,198.79. This trade represents a 2.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 that occurred on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the sale, 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 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 90 days, insiders have sold 11,187 shares of company stock worth $1,111,085. 0.03% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SBUX. UBS Group cut shares of Starbucks from a "neutral" rating to a "neutral" rating in a research note on Thursday, May 14th. JPMorgan Chase & Co. increased their price objective on shares of Starbucks from $95.00 to $100.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Wells Fargo & Company reiterated an "overweight" rating and issued a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Wednesday, April 29th. BMO Capital Markets reiterated an "outperform" rating and issued a $120.00 price objective on shares of Starbucks in a research note on Friday, January 30th. Finally, DA Davidson increased their price objective on shares of Starbucks from $97.00 to $102.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $107.48.

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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