Covenant Asset Management LLC cut its stake in Starbucks Corporation (NASDAQ:SBUX – Free Report) by 60.0% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 8,243 shares of the coffee company’s stock after selling 12,339 shares during the quarter. Covenant Asset Management LLC’s holdings in Starbucks were worth $694,000 as of its most recent filing with the Securities & Exchange Commission.
Several other hedge funds have also recently made changes to their positions in the stock. Collier Financial purchased a new stake in Starbucks in the third quarter worth approximately $25,000. Y.D. More Investments Ltd purchased a new stake in Starbucks during the 3rd quarter valued at $26,000. JPL Wealth Management LLC bought a new position in shares of Starbucks during the 3rd quarter valued at $27,000. Kelleher Financial Advisors bought a new position in shares of Starbucks during the 3rd quarter valued at $27,000. Finally, Saranac Partners Ltd purchased a new position in shares of Starbucks in the 3rd quarter worth $29,000. 72.29% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets
A number of research firms recently commented on SBUX. Royal Bank Of Canada cut Starbucks from an “outperform” rating to a “sector perform” rating and set a $105.00 price objective for the company. in a research report on Tuesday, March 17th. Citigroup reissued a “neutral” rating and issued a $99.00 target price (up from $92.00) on shares of Starbucks in a research report on Tuesday, April 14th. Bank of America set a $114.00 price target on shares of Starbucks in a research report on Wednesday, January 21st. Guggenheim reiterated a “neutral” rating and issued a $95.00 price objective (up from $90.00) on shares of Starbucks in a research note on Wednesday, March 4th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $113.00 price objective on shares of Starbucks in a report on Thursday, January 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 company’s stock. Based on data from MarketBeat.com, Starbucks has an average rating of “Moderate Buy” and an average price target of $104.75.
Read Our Latest Stock Analysis on Starbucks
Starbucks Stock Performance
NASDAQ:SBUX opened at $97.28 on Wednesday. The stock has a 50-day simple moving average of $96.15 and a two-hundred day simple moving average of $90.75. The firm has a market capitalization of $110.83 billion, a PE ratio of 80.40, a P/E/G ratio of 2.08 and a beta of 0.95. Starbucks Corporation has a 52-week low of $75.50 and a 52-week high of $104.82.
Starbucks (NASDAQ:SBUX – Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.44 by $0.06. Starbucks had a negative return on equity of 28.66% and a net margin of 3.63%.The firm had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.09 billion. During the same quarter last year, the company earned $0.41 earnings per share. 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. Equities analysts forecast that Starbucks Corporation will post 2.31 earnings per share for the current fiscal year.
Starbucks Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.48 annualized dividend and a yield of 2.5%. Starbucks’s payout ratio is currently 204.96%.
Key Headlines Impacting Starbucks
Here are the key news stories impacting Starbucks this week:
Insider Buying and Selling
In other news, EVP Sara Kelly sold 2,500 shares of the stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the sale, the executive vice president directly owned 59,609 shares of the company’s stock, valued at $5,789,226.08. This represents a 4.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Brady Brewer sold 1,641 shares of the firm’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total transaction of $159,373.92. Following the sale, the chief executive officer owned 86,605 shares in the company, valued at $8,411,077.60. The trade was a 1.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 6,958 shares of company stock valued at $667,464. Company insiders own 0.03% of the company’s stock.
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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