Trans Canada Capital Inc. Acquires New Stake in Starbucks Corporation $SBUX

Trans Canada Capital Inc. acquired a new stake in Starbucks Corporation (NASDAQ:SBUX) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 244,855 shares of the coffee company’s stock, valued at approximately $25,022,000. Starbucks makes up about 1.4% of Trans Canada Capital Inc.’s investment portfolio, making the stock its 7th largest position.

Other large investors have also modified their holdings of the company. Capital World Investors raised its position in shares of Starbucks by 9.0% in the fourth quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock valued at $7,135,228,000 after buying an additional 7,007,268 shares during the last quarter. BlackRock Inc. purchased a new stake in Starbucks during the 2nd quarter valued at about $8,504,509,000. State Street Corp grew its stake in Starbucks by 0.7% during the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company’s stock valued at $4,031,053,000 after acquiring an additional 327,161 shares in the last quarter. Geode Capital Management LLC raised its holdings in Starbucks by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock valued at $2,212,153,000 after acquiring an additional 225,168 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its holdings in Starbucks by 65.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock valued at $1,637,704,000 after acquiring an additional 7,725,547 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $104.47 on Monday. The company has a market capitalization of $119.10 billion, a P/E ratio of 60.04, a P/E/G ratio of 1.80 and a beta of 0.97. The company has a 50 day simple moving average of $105.43 and a 200-day simple moving average of $101.14. Starbucks Corporation has a 1 year low of $77.99 and a 1 year high of $110.51.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 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 firm’s quarterly revenue was down 1.4% on a year-over-year basis. During the same period in the prior year, the firm posted $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, research analysts expect that Starbucks Corporation will post 2.64 EPS for the current year.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a dividend of $0.62 per share. The ex-dividend date was Friday, August 14th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. Starbucks’s dividend payout ratio is currently 142.53%.

Insider Activity

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total value of $236,251.71. Following the transaction, the chief executive officer owned 75,135 shares of the company’s stock, valued at $7,963,558.65. This represents a 2.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 5,046 shares of company stock worth $526,868. 0.03% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Scotiabank cut Starbucks from a “market perform” rating to an “underperform” rating in a report on Thursday, May 14th. Stephens initiated coverage on Starbucks in a report on Thursday, May 14th. They issued an “overweight” rating for the company. Melius Research set a $110.00 price objective on Starbucks in a research note on Monday, August 3rd. UBS Group upped their target price on Starbucks from $105.00 to $112.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Finally, Wedbush began coverage on Starbucks in a research note on Thursday, May 14th. They issued an “outperform” rating for the company. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Starbucks currently has an average rating of “Hold” and an average target price of $110.30.

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.