Franklin Resources Inc. Cuts Stock Holdings in Starbucks Corporation $SBUX

Franklin Resources Inc. trimmed its position in shares of Starbucks Corporation (NASDAQ:SBUX) by 4.1% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 3,222,538 shares of the coffee company’s stock after selling 139,271 shares during the quarter. Franklin Resources Inc.’s holdings in Starbucks were worth $271,370,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently made changes to their positions in the company. Rachor Investment Advisory Services LLC bought a new position in shares of Starbucks during the fourth quarter valued at about $25,000. Y.D. More Investments Ltd bought a new position in shares of Starbucks during the third quarter valued at about $26,000. Entrust Financial LLC bought a new position in shares of Starbucks during the fourth quarter valued at about $26,000. Tucker Asset Management LLC purchased a new position in shares of Starbucks in the 4th quarter worth approximately $27,000. Finally, JPL Wealth Management LLC bought a new position in shares of Starbucks in the third quarter valued at approximately $27,000. 72.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. The Goldman Sachs Group cut Starbucks from a “neutral” rating to a “neutral” rating in a research report on Thursday, May 14th. Citigroup upped their price objective on Starbucks from $99.00 to $101.00 and gave the company a “neutral” rating in a research note on Wednesday, April 29th. Wells Fargo & Company reiterated an “overweight” rating and issued a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Wednesday, April 29th. Guggenheim reiterated a “neutral” rating and issued a $97.00 price objective (up from $95.00) on shares of Starbucks in a research note on Wednesday, April 29th. Finally, Royal Bank Of Canada downgraded Starbucks from a “sector perform” rating to a “positive” rating in a research note on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $107.48.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is getting favorable attention for expanding its Refreshers lineup, including blended versions that management says could drive more afternoon visits and incremental sales from younger customers. Starbucks’ latest drink launch is a bet on the future of fast food beverages
• Positive Sentiment: Investors are also encouraged by reports that Starbucks is seeing encouraging growth beyond the morning rush, suggesting the company’s turnaround efforts are starting to improve traffic patterns and revenue mix. Starbucks Sees Encouraging Growth beyond the Morning Rush, CNBC Reports
• Positive Sentiment: Analyst commentary remains constructive, with coverage highlighting Starbucks’ $2 billion cost-savings plan and improving margins as potential catalysts for stronger EPS growth. Can Starbucks’ $2 Billion Cost-Savings Plan Accelerate EPS Growth?
• Positive Sentiment: Starbucks’ CEO also signaled international expansion as part of the company’s growth push, reinforcing the view that management sees room for long-term sales gains. Starbucks Stock (SBUX) Turns Frothy as CEO Talks International Expansion
• Neutral Sentiment: Starbucks CEO Brady Brewer disclosed a pre-arranged sale of 1,641 shares under a 10b5-1 plan, which is unlikely to be interpreted as a major change in fundamentals but can add modest overhang. SEC filing
• Negative Sentiment: One external note highlighted broader market weakness in AI and tech stocks, but this is not directly tied to Starbucks’ business and appears to have limited impact on SBUX. Deja Vu? AI Overspending Fears Renew

Insider Buying and Selling at Starbucks

In other Starbucks news, EVP Sara Kelly sold 2,000 shares of the stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the sale, the executive vice president owned 57,653 shares in the company, valued at $6,053,565. This represents a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 1,641 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $94.33, for a total value of $154,795.53. Following the sale, the chief executive officer owned 80,181 shares in the company, valued at approximately $7,563,473.73. This represents a 2.01% 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 90 days, insiders have sold 8,099 shares of company stock worth $804,907. Company insiders own 0.03% of the company’s stock.

Starbucks Trading Up 2.7%

Starbucks stock opened at $97.41 on Wednesday. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $108.88. The business’s 50 day simple moving average is $99.52 and its 200 day simple moving average is $94.35. The company has a market cap of $111.02 billion, a price-to-earnings ratio of 73.80, a PEG ratio of 1.87 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06. The firm had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business’s quarterly revenue was up 8.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, equities research analysts forecast that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 15th were given a dividend of $0.62 per share. The ex-dividend date was Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.5%. Starbucks’s dividend payout ratio is currently 187.88%.

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.