Key Points
- CEO Brady Brewer sold 1,641 Starbucks shares for approximately $155,500 under a pre-arranged Rule 10b5-1 trading plan, reducing his direct holdings by 2.24% to 71,508 shares.
- Starbucks reported better-than-expected quarterly results, with EPS of $0.85 and revenue of $9.32 billion, although revenue declined 1.4% year over year. The stock traded near $93.58, below its 50-day and 200-day moving averages.
- The company raised its quarterly dividend from $0.62 to $0.63 per share, while analysts maintained a mixed outlook with a consensus “Hold” rating and an average price target of $110.48.
Starbucks Corporation (NASDAQ:SBUX - Get Free Report) CEO Brady Brewer sold 1,641 shares of the business's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $94.76, for a total transaction of $155,501.16. Following the sale, the chief executive officer directly owned 71,508 shares of the company's stock, valued at $6,776,098.08. This represents a 2.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Brady Brewer also recently made the following trade(s):
- On Friday, September 4th, Brady Brewer sold 2,229 shares of Starbucks stock. The stock was sold at an average price of $105.60, for a total value of $235,382.40.
- On Wednesday, August 5th, Brady Brewer sold 2,229 shares of Starbucks stock. The shares were sold at an average price of $105.99, for a total value of $236,251.71.
Starbucks Price Performance
NASDAQ SBUX opened at $93.58 on Thursday. The company has a market cap of $106.68 billion, a PE ratio of 53.78, a price-to-earnings-growth ratio of 1.39 and a beta of 0.98. The stock's 50 day simple moving average is $101.79 and its 200-day simple moving average is $100.98. Starbucks Corporation has a 1-year low of $77.99 and a 1-year high of $110.51.
Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, topping the consensus estimate of $0.66 by $0.19. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The firm had revenue of $9.32 billion during the quarter, compared to analysts' expectations of $9.17 billion. During the same period in the previous year, the business earned $0.50 earnings per share. The firm's revenue for the quarter was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities research analysts anticipate that Starbucks Corporation will post 2.59 EPS for the current fiscal year.
Starbucks Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be given a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.7%. This is a positive change from Starbucks's previous quarterly dividend of $0.62. The ex-dividend date is Friday, November 13th. Starbucks's dividend payout ratio (DPR) is currently 142.53%.
Institutional Inflows and Outflows
Several hedge funds have recently bought and sold shares of SBUX. Moody National Bank Trust Division boosted its position in shares of Starbucks by 3.4% during the 3rd quarter. Moody National Bank Trust Division now owns 23,341 shares of the coffee company's stock worth $2,193,000 after purchasing an additional 771 shares during the period. QRG Capital Management Inc. raised its position in Starbucks by 10.5% in the second quarter. QRG Capital Management Inc. now owns 159,617 shares of the coffee company's stock valued at $16,311,000 after purchasing an additional 15,211 shares during the period. State Street Corp raised its position in Starbucks by 3.2% in the second quarter. State Street Corp now owns 49,260,268 shares of the coffee company's stock valued at $5,033,907,000 after purchasing an additional 1,530,497 shares during the period. Smith Chas P & Associates PA Cpas acquired a new position in Starbucks during the second quarter worth $204,000. Finally, Marathon Wealth Advisors LLC lifted its stake in Starbucks by 1.9% during the second quarter. Marathon Wealth Advisors LLC now owns 13,128 shares of the coffee company's stock worth $1,342,000 after purchasing an additional 246 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company's stock.
Analysts Set New Price Targets
A number of analysts have commented on SBUX shares. JPMorgan Chase & Co. cut their price objective on shares of Starbucks from $112.00 to $105.00 and set an "overweight" rating for the company in a report on Tuesday, September 29th. Zacks Research lowered Starbucks from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $115.00 price target (up from $110.00) on shares of Starbucks in a report on Thursday, July 30th. BNP Paribas Exane lifted their price objective on Starbucks from $87.00 to $92.00 and gave the stock an "underperform" rating in a research report on Thursday, July 30th. Finally, Robert W. Baird raised Starbucks to a "strong-buy" rating in a research note on Monday, August 24th. 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 issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $110.48.
Get Our Latest Analysis on Starbucks
Key Starbucks News
Here are the key news stories impacting Starbucks this week:
- Positive Sentiment: Starbucks raised its quarterly dividend from $0.62 to $0.63 per share, bringing the annualized payout to $2.52. The dividend will be paid November 27 to shareholders of record November 13, signaling management’s confidence in cash generation and continuing a long record of annual increases. Starbucks Announces Increase in Quarterly Cash Dividend
- Positive Sentiment: Recent commentary indicates Starbucks’ turnaround is beginning to restore customer traffic and improve store execution after slower service and inconsistent experiences hurt the brand. The recovery could support sales growth if management can sustain the improvements. Starbucks Comeback Is Working
- Neutral Sentiment: Investors remain focused on whether the turnaround justifies SBUX’s elevated valuation. Starbucks recently reported better-than-expected quarterly earnings and revenue, but revenue still declined 1.4% year over year; the stock’s approximately 53.8 price-to-earnings ratio leaves limited room for execution missteps.
- Neutral Sentiment: CEO Brady Brewer sold 1,641 shares worth about $155,500 under a pre-arranged Rule 10b5-1 trading plan. Because the sale reduced his holdings by only 2.24% and was scheduled in advance, it is a limited signal about management’s outlook. SEC Insider Trading Filing
- Negative Sentiment: A proposed class-action lawsuit alleges that eight beverages marketed as “sugar-free” contain 13 to 21 grams of sugar per serving. The case creates potential legal costs and reputational risk, particularly for a brand emphasizing healthier and customizable drinks. Starbucks Sued Over Sugar-Free Protein Drinks
- Negative Sentiment: Investors have reacted cautiously to Starbucks’ pivot toward smaller stores, which could reduce seating capacity and potentially conflict with efforts to encourage customers to stay longer and improve the in-store experience. Starbucks Stock Slips on Smaller Store Pivot
Starbucks Company Profile
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Get Free Report)
Starbucks Corporation is a global specialty coffee company that operates coffeehouses and sells coffee, tea and other beverages, along with food products and merchandise. Its menu includes brewed coffee, espresso-based drinks, cold beverages, teas, bakery items and ready-to-eat food. Starbucks also markets packaged coffee, ready-to-drink beverages and related products through retail and grocery channels, often through licensing and other business partnerships.
Founded in Seattle in 1971, Starbucks expanded from a local coffee retailer into an international brand.
Further Reading
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