Castle Rock Wealth Management LLC Cuts Position in Starbucks Corporation $SBUX

Castle Rock Wealth Management LLC decreased its holdings in shares of Starbucks Corporation (NASDAQ:SBUX) by 87.5% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 2,588 shares of the coffee company’s stock after selling 18,054 shares during the period. Castle Rock Wealth Management LLC’s holdings in Starbucks were worth $240,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. Collier Financial purchased a new stake in shares of Starbucks in the 3rd quarter worth approximately $25,000. Rachor Investment Advisory Services LLC purchased a new position in Starbucks during the fourth quarter valued at $25,000. Y.D. More Investments Ltd bought a new stake in Starbucks in the third quarter worth $26,000. JPL Wealth Management LLC bought a new stake in Starbucks in the third quarter worth $27,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of Starbucks in the third quarter worth $27,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

SBUX has been the subject of several recent analyst reports. TD Cowen raised Starbucks from a “hold” rating to a “buy” rating and lifted their price target for the stock from $106.00 to $120.00 in a research report on Thursday. UBS Group downgraded Starbucks from a “neutral” rating to a “neutral” rating in a research note on Thursday. Piper Sandler reiterated an “overweight” rating and issued a $110.00 price target on shares of Starbucks in a research note on Wednesday, April 29th. Bank of America set a $114.00 target price on shares of Starbucks in a research note on Wednesday, January 21st. Finally, Jefferies Financial Group assumed coverage on Starbucks in a report on Thursday. They set a “buy” rating on the stock. Twenty equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $107.48.

Starbucks Trading Up 0.4%

SBUX opened at $106.40 on Friday. The company’s 50 day moving average is $97.91 and its 200 day moving average is $92.26. The company has a market cap of $121.26 billion, a price-to-earnings ratio of 80.61, a PEG ratio of 2.14 and a beta of 1.01. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $108.88.

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

Starbucks Dividend Announcement

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 given 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 is presently 187.88%.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: TD Cowen upgraded Starbucks to Buy and lifted its price target to $120, saying the company’s turnaround, margin recovery, and sales drivers could support stronger earnings and positive estimate revisions. TD Cowen Just Upgraded Starbucks to Buy: Margin Recovery, Sales Drivers Power Comeback Story
• Positive Sentiment: Several reports highlighted Starbucks’ shares reaching a 52-week high as investors buy into the company’s turnaround plan and improving traffic trends. Starbucks Stock (SBUX) Hits 52-Week High as Investors Buy Into Turnaround Plan
• Positive Sentiment: Zacks said Starbucks’ margin recovery is taking shape, pointing to a higher Q2 FY26 margin and improved EPS leverage from cost savings and moderating pressures. Starbucks’ Margin Recovery Takes Shape: Can Cost Leverage Build?
• Positive Sentiment: Unusual options activity showed heavy call buying in Starbucks, which can signal traders are positioning for further upside. Starbucks unusual options trading activity
• Neutral Sentiment: Starbucks is also being discussed for its use of ChatGPT to help customers discover drinks, a brand and product-engagement story that is unlikely to move the stock on its own. Only 39% Of Consumers Trust AI For Purchases, Yet Starbucks Is Using ChatGPT To Pick Your Next Drink
• Negative Sentiment: UN human-rights experts urged Starbucks and the U.S. government to respond to union-busting allegations, which could add reputational and labor-relations pressure. UN human-rights experts urge Starbucks and US to address union-busting claims

Insider Buying and Selling

In related news, 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 transaction, the chief executive officer owned 81,559 shares in the company, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,500 shares of the company’s stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $242,800.00. Following the completion of the transaction, 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 position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 11,187 shares of company stock valued at $1,111,085. Company insiders own 0.03% of the company’s stock.

About Starbucks

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.