Washington Trust Bank Reduces Position in Starbucks Corporation $SBUX

Key Points

• Washington Trust Bank reduced its Starbucks stake by 14.1% in the fourth quarter, selling 28,218 shares and leaving it with 172,273 shares worth about $14.5 million.
• 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 estimated; revenue rose 8.8% year over year.
• The company also announced a quarterly dividend of $0.62 per share, while analysts currently rate the stock a consensus Moderate Buy with a $107 average price target.

Washington Trust Bank lessened its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 14.1% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 172,273 shares of the coffee company's stock after selling 28,218 shares during the period. Starbucks comprises approximately 1.0% of Washington Trust Bank's investment portfolio, making the stock its 28th biggest position. Washington Trust Bank's holdings in Starbucks were worth $14,507,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. River Street Advisors LLC boosted its holdings in shares of Starbucks by 0.8% in the fourth quarter. River Street Advisors LLC now owns 13,516 shares of the coffee company's stock valued at $1,138,000 after purchasing an additional 113 shares during the period. Opus Capital Group LLC boosted its holdings in shares of Starbucks by 3.9% in the fourth quarter. Opus Capital Group LLC now owns 3,187 shares of the coffee company's stock valued at $268,000 after purchasing an additional 120 shares during the period. Wynn Capital LLC boosted its holdings in shares of Starbucks by 1.0% in the fourth quarter. Wynn Capital LLC now owns 11,895 shares of the coffee company's stock valued at $1,002,000 after purchasing an additional 122 shares during the period. Winch Advisory Services LLC boosted its holdings in shares of Starbucks by 1.1% in the third quarter. Winch Advisory Services LLC now owns 11,004 shares of the coffee company's stock valued at $931,000 after purchasing an additional 123 shares during the period. Finally, CVA Family Office LLC lifted its holdings in Starbucks by 3.1% during the fourth quarter. CVA Family Office LLC now owns 4,223 shares of the coffee company's stock worth $356,000 after buying an additional 126 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Trading Up 0.8%

Shares of SBUX opened at $105.74 on Tuesday. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $108.04. The stock has a fifty day moving average price of $97.36 and a 200-day moving average price of $91.82. The firm has a market cap of $120.51 billion, a PE ratio of 80.11, a P/E/G ratio of 2.12 and a beta of 1.01.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.44 by $0.06. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm had revenue of $9.53 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same quarter in the prior year, the business posted $0.41 EPS. The business's revenue for the quarter was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, research analysts forecast that Starbucks Corporation will post 2.41 EPS for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be issued a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, May 15th. Starbucks's dividend payout ratio is currently 187.88%.

Insider Buying and Selling at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of the company's stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total value of $210,000.00. Following the transaction, the executive vice president directly owned 57,653 shares of the company's stock, valued at $6,053,565. This represents a 3.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the transaction, the chief executive officer directly 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. In the last quarter, insiders have sold 11,187 shares of company stock valued at $1,111,085. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

A number of analysts have weighed in on SBUX shares. Citigroup upped their target price on Starbucks from $99.00 to $101.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Zacks Research raised Starbucks from a "strong sell" rating to a "hold" rating in a research report on Tuesday, January 27th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Starbucks in a research report on Wednesday, April 22nd. Mizuho raised their price objective on Starbucks from $86.00 to $95.00 and gave the company a "neutral" rating in a research report on Monday, January 26th. Finally, UBS Group reaffirmed a "neutral" rating and set a $105.00 price objective (up from $100.00) on shares of Starbucks in a research report on Wednesday, April 29th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Starbucks presently has a consensus rating of "Moderate Buy" and a consensus target price of $107.00.

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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