Wellington Management Group LLP Acquires 1,077,415 Shares of Starbucks Corporation $SBUX

Key Points

• Wellington Management increased its Starbucks stake by 27.1% in the second quarter, acquiring 1.08 million additional shares for a total holding of 5.06 million shares valued at approximately $517 million. Institutional investors collectively own 72.29% of the company.
• Analyst sentiment remains mixed, with Starbucks carrying a consensus rating of “Hold” and an average price target of $110.30. Recent targets range from $92 to $112, including new “underperform” ratings from BNP Paribas Exane and Scotiabank.
• Starbucks exceeded quarterly expectations, reporting $0.85 in earnings per share versus the $0.66 consensus and $9.32 billion in revenue, although revenue declined 1.4% year over year. The company also declared a quarterly dividend of $0.62 per share, representing a 2.3% annualized yield.

Wellington Management Group LLP raised its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 27.1% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 5,059,540 shares of the coffee company's stock after acquiring an additional 1,077,415 shares during the period. Wellington Management Group LLP owned approximately 0.44% of Starbucks worth $517,034,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Sunbelt Securities Inc. increased its position in shares of Starbucks by 1.0% in the first quarter. Sunbelt Securities Inc. now owns 9,473 shares of the coffee company's stock worth $849,000 after purchasing an additional 97 shares during the last quarter. Webster Bank N. A. lifted its position in Starbucks by 7.8% during the second quarter. Webster Bank N. A. now owns 1,396 shares of the coffee company's stock valued at $143,000 after purchasing an additional 101 shares during the last quarter. Nilsine Partners LLC lifted its position in Starbucks by 1.0% during the second quarter. Nilsine Partners LLC now owns 10,039 shares of the coffee company's stock valued at $1,026,000 after purchasing an additional 101 shares during the last quarter. Beta Wealth Group Inc. grew its stake in Starbucks by 1.7% in the 2nd quarter. Beta Wealth Group Inc. now owns 6,216 shares of the coffee company's stock worth $635,000 after buying an additional 102 shares in the last quarter. Finally, Elgethun Capital Management increased its holdings in shares of Starbucks by 9.4% in the 2nd quarter. Elgethun Capital Management now owns 1,219 shares of the coffee company's stock worth $125,000 after buying an additional 105 shares during the last quarter. Institutional investors own 72.29% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. BNP Paribas Exane lifted their price objective on shares of Starbucks from $87.00 to $92.00 and gave the stock an "underperform" rating in a report on Thursday, July 30th. Zacks Research cut Starbucks from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Jefferies Financial Group started coverage on Starbucks in a research report on Thursday, May 14th. They set a "buy" rating on the stock. Scotiabank lowered Starbucks from a "market perform" rating to an "underperform" rating in a research note on Thursday, May 14th. Finally, UBS Group upped their price objective on Starbucks from $105.00 to $112.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $110.30.

Starbucks Stock Up 0.6%

NASDAQ SBUX opened at $107.85 on Friday. The company has a 50-day simple moving average of $105.10 and a two-hundred day simple moving average of $100.78. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $110.51. The firm has a market cap of $122.95 billion, a price-to-earnings ratio of 61.98, a PEG ratio of 1.86 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.66 by $0.19. The firm had revenue of $9.32 billion for the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The company's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period last year, the firm earned $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Equities analysts expect that Starbucks Corporation will post 2.64 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a yield of 2.3%. The ex-dividend date was Friday, August 14th. Starbucks's dividend payout ratio (DPR) is presently 142.53%.

Insider Buying and Selling

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total value of $236,251.71. Following the completion of the sale, the chief executive officer owned 75,135 shares in the company, valued at approximately $7,963,558.65. The trade was a 2.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 6,687 shares of company stock valued at $681,663. 0.03% of the stock is owned by insiders.

Starbucks Company 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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