Pinnacle Associates Ltd. Reduces Holdings in Starbucks Corporation $SBUX

Pinnacle Associates Ltd. trimmed its holdings in shares of Starbucks Corporation (NASDAQ:SBUX) by 13.3% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 40,017 shares of the coffee company’s stock after selling 6,136 shares during the period. Pinnacle Associates Ltd.’s holdings in Starbucks were worth $3,370,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of SBUX. Collier Financial purchased a new position in shares of Starbucks during the 3rd quarter worth approximately $25,000. Rachor Investment Advisory Services LLC purchased a new stake in Starbucks in the 4th quarter worth approximately $25,000. Y.D. More Investments Ltd purchased a new stake in Starbucks in the 3rd quarter worth approximately $26,000. JPL Wealth Management LLC purchased a new stake in Starbucks in the 3rd quarter worth approximately $27,000. Finally, Kelleher Financial Advisors purchased a new stake in Starbucks in the 3rd quarter worth approximately $27,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Up 0.4%

Shares of SBUX opened at $106.82 on Friday. The firm has a market cap of $121.74 billion, a PE ratio of 80.92, a price-to-earnings-growth ratio of 2.15 and a beta of 1.01. The company’s fifty day moving average is $98.11 and its two-hundred day moving average is $92.36. Starbucks Corporation has a fifty-two week low of $77.99 and a fifty-two week high of $108.88.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.06. The company had revenue of $9.53 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. Starbucks’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter last year, the business earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, equities research analysts anticipate that Starbucks Corporation will post 2.41 earnings per share for the current year.

Starbucks Announces Dividend

The business 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 $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, May 15th. Starbucks’s dividend payout ratio (DPR) is 187.88%.

Wall Street Analyst Weigh In

Several analysts have commented on SBUX shares. UBS Group cut shares of Starbucks from a “neutral” rating to a “neutral” rating in a research note on Thursday. Bank of America set a $114.00 target price on shares of Starbucks in a research note on Wednesday, January 21st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starbucks in a research note on Wednesday, April 22nd. Barclays set a $116.00 target price on shares of Starbucks and gave the stock an “overweight” rating in a research note on Friday, January 30th. Finally, JPMorgan Chase & Co. lifted their target price 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. Twenty equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $107.48.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Investors appear to like the cost-cutting focus, as the layoffs and office closures are intended to improve efficiency, support margin recovery, and help fund the company’s turnaround strategy. Reuters article
• Positive Sentiment: Wall Street sentiment also remains supportive, with TD Cowen upgrading Starbucks to Buy and raising its price target, citing improving sales drivers, margin recovery, and multiple tangible catalysts for the comeback story. Analyst upgrade article
• Neutral Sentiment: The restructuring comes with a sizable estimated $400 million charge, which could weigh on near-term earnings even as management argues the actions will strengthen the business over time. New York Times article
• Neutral Sentiment: Recent trading also reflects a broader re-rating of the stock, which has been pushing toward new highs as investors gain confidence in CEO Brian Niccol’s turnaround plan. CNBC article
• Negative Sentiment: The job cuts and office closures also signal that the turnaround is still in progress, and the company may continue to face pressure from restructuring costs and execution risk before the benefits show up in results. Wall Street Journal article

Insiders Place Their Bets

In other Starbucks news, EVP Sara Kelly sold 2,500 shares of Starbucks 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 transaction, the executive vice president owned 59,609 shares in the company, valued at $5,789,226.08. This trade represents a 4.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction 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 completion of the transaction, 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. 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 sold 11,187 shares of company stock worth $1,111,085. 0.03% of the stock is owned by company insiders.

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.