Welch & Forbes LLC Decreases Holdings in Starbucks Corporation $SBUX

Welch & Forbes LLC decreased its stake in Starbucks Corporation (NASDAQ:SBUX) by 6.7% during the 1st quarter, HoldingsChannel.com reports. The fund owned 84,551 shares of the coffee company’s stock after selling 6,105 shares during the period. Welch & Forbes LLC’s holdings in Starbucks were worth $7,575,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in SBUX. Rachor Investment Advisory Services LLC purchased a new stake in shares of Starbucks during the 4th quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Starbucks in the 4th quarter worth approximately $25,000. Phillip James Consulting Co. purchased a new position in Starbucks in the fourth quarter valued at approximately $25,000. Entrust Financial LLC purchased a new position in Starbucks in the fourth quarter valued at approximately $26,000. Finally, Tucker Asset Management LLC bought a new position in Starbucks during the fourth quarter valued at $27,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Price Performance

Shares of SBUX traded down $0.40 during midday trading on Friday, hitting $106.01. 4,686,326 shares of the company traded hands, compared to its average volume of 6,783,678. Starbucks Corporation has a one year low of $77.99 and a one year high of $108.88. The firm has a market cap of $120.82 billion, a P/E ratio of 80.31, a PEG ratio of 2.11 and a beta of 0.98. The stock has a 50-day moving average of $102.43 and a 200-day moving average of $97.07.

Starbucks (NASDAQ:SBUX) last issued 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 company had revenue of $9.53 billion during the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. Starbucks’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Sell-side analysts forecast that Starbucks Corporation will post 2.4 EPS for the current fiscal year.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks’s payout ratio is 187.88%.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks’ AI-driven software overhaul could materially reduce operating expenses by replacing Microsoft and IBM systems, supporting future margin expansion. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs
• Positive Sentiment: The company’s recent earnings beat and revenue growth reinforce the view that its turnaround efforts are gaining traction.
• Neutral Sentiment: Starbucks added five new Orange Cream drinks for summer, which may help traffic and seasonal sales but is not a major fundamental catalyst on its own. Starbucks adds 5 new Orange Cream drinks for summer
• Neutral Sentiment: CEO Brady Brewer sold shares under a pre-arranged trading plan, which can prompt caution but does not necessarily signal a change in the business outlook. SEC Form 4 filing

Analyst Ratings Changes

A number of analysts have issued reports on SBUX shares. Zacks Research downgraded Starbucks from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. JPMorgan Chase & Co. increased their price target on Starbucks from $95.00 to $100.00 and gave the stock an “overweight” rating in a research note on Friday, April 24th. Evercore lifted their price objective on Starbucks from $110.00 to $115.00 and gave the stock an “outperform” rating in a report on Wednesday, April 29th. Weiss Ratings restated a “hold (c)” rating on shares of Starbucks in a research note on Wednesday, April 22nd. Finally, Royal Bank Of Canada downgraded shares of Starbucks from a “sector perform” rating to a “positive” rating in a report on Thursday, May 14th. Nineteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $108.92.

Insider Buying and Selling at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of Starbucks 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 completion of the sale, the executive vice president owned 57,653 shares of the company’s stock, valued at approximately $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $104.00, for a total value of $231,816.00. Following the transaction, the chief executive officer owned 77,364 shares of the company’s stock, valued at approximately $8,045,856. The trade was a 2.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 9,275 shares of company stock worth $947,833. Insiders own 0.03% of the company’s stock.

Starbucks 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.