Madison Asset Management LLC Lowers Position in Starbucks Corporation $SBUX

Madison Asset Management LLC reduced its stake in Starbucks Corporation (NASDAQ:SBUX) by 20.2% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 367,263 shares of the coffee company’s stock after selling 92,817 shares during the period. Madison Asset Management LLC’s holdings in Starbucks were worth $30,927,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Starbucks by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company’s stock valued at $9,634,523,000 after purchasing an additional 971,773 shares during the last quarter. Capital Research Global Investors raised its position in Starbucks by 11.4% in the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock worth $7,229,968,000 after purchasing an additional 8,774,198 shares during the period. Capital World Investors lifted its stake in shares of Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company’s stock worth $6,575,430,000 after acquiring an additional 1,462,874 shares during the last quarter. Capital International Investors lifted its position in shares of Starbucks by 22.5% during the third quarter. Capital International Investors now owns 14,691,772 shares of the coffee company’s stock worth $1,243,104,000 after purchasing an additional 2,699,479 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in Starbucks by 6.5% during the 3rd quarter. Invesco Ltd. now owns 13,590,494 shares of the coffee company’s stock valued at $1,149,756,000 after buying an additional 832,540 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on SBUX shares. Zacks Research raised Starbucks from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 27th. TD Cowen reiterated a “hold” rating and issued a $106.00 target price (up from $96.00) on shares of Starbucks in a report on Wednesday, April 29th. Citigroup increased their price target on shares of Starbucks from $99.00 to $101.00 and gave the company a “neutral” rating in a research report on Wednesday, April 29th. Morgan Stanley raised their price target on shares of Starbucks from $105.00 to $110.00 and gave the company an “overweight” rating in a report on Wednesday, April 29th. Finally, DA Davidson boosted their price objective on shares of Starbucks from $97.00 to $102.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 29th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $107.00.

Starbucks Stock Up 0.8%

Shares of NASDAQ:SBUX opened at $106.58 on Wednesday. Starbucks Corporation has a 52-week low of $77.99 and a 52-week high of $108.04. The stock has a market cap of $121.47 billion, a price-to-earnings ratio of 80.74, a PEG ratio of 2.14 and a beta of 1.01. The business has a 50-day moving average price of $97.53 and a 200-day moving average price of $91.97.

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

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be issued a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, May 15th. Starbucks’s payout ratio is 187.88%.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Stifel reiterated a Buy rating on Starbucks and raised its price target to $117 from $115, reinforcing confidence in the company’s turnaround and earnings outlook. Stifel Reaffirms Bullish View on Starbucks Corporation (SBUX)
• Positive Sentiment: Reports that Starbucks is opening hundreds of new stores, alongside a possible $30 million Tennessee incentive tied to its Nashville corporate office, suggest continued growth and investment in the business. Dollar Tree and Starbucks are suddenly opening hundreds of new stores as retail doom stories pile up Tennessee lawmakers debate $30M incentive deal with Starbucks
• Neutral Sentiment: A joint venture completed a $161 million refinancing of a Manhattan property fully leased to Starbucks, which is supportive of the company’s real estate footprint but not a major direct earnings driver. Vornado JV Completes $161 Million Refinancing of 61 Ninth Avenue
• Negative Sentiment: Starbucks cut 61 technology jobs in Seattle as part of a reorganization, underscoring ongoing cost-cutting and restructuring pressures. Starbucks cuts 61 technology jobs in Seattle
• Negative Sentiment: Rising coffee prices are pressuring margins across chains including Starbucks, and the company is being cautious about passing higher costs to consumers. Coffee prices keep rising, and chains like Dutch Bros are swallowing most of the costs

Insider Transactions at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer directly owned 81,559 shares of the company’s stock, valued at $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the transaction, the executive vice president directly owned 57,653 shares of the company’s stock, valued at $6,053,565. The trade was a 3.35% decrease in their ownership of the stock. 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. Insiders sold 11,187 shares of company stock worth $1,111,085 in the last 90 days. Company insiders own 0.03% of the company’s stock.

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.