Motley Fool Asset Management LLC Sells 6,985 Shares of Starbucks Corporation $SBUX

Motley Fool Asset Management LLC cut its holdings in shares of Starbucks Corporation (NASDAQ:SBUX – Free Report) by 7.8% during the 3rd quarter, Holdings Channel.com reports. The institutional investor owned 82,272 shares of the coffee company’s stock after selling 6,985 shares during the quarter. Motley Fool Asset Management LLC’s holdings in Starbucks were worth $7,730,000 at the end of the most recent quarter.

Several other hedge funds have also recently made changes to their positions in SBUX. North Star Investment Management Corp. increased its position in shares of Starbucks by 0.5% during the third quarter. North Star Investment Management Corp. now owns 44,937 shares of the coffee company’s stock valued at $4,222,000 after buying an additional 229 shares during the period. Financial Insights Inc. raised its stake in Starbucks by 10.3% in the third quarter. Financial Insights Inc. now owns 11,588 shares of the coffee company’s stock worth $1,089,000 after buying an additional 1,086 shares in the last quarter. Laurel Wealth Advisors LLC bought a new position in Starbucks in the third quarter worth about $133,000. William Mack & Associates Inc. purchased a new stake in Starbucks in the third quarter worth about $31,000. Finally, Great Lakes Retirement Inc. purchased a new stake in Starbucks in the third quarter worth about $2,478,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $105.60, for a total value of $235,382.40. Following the sale, the chief executive officer directly owned 73,149 shares of the company’s stock, valued at $7,724,534.40. The trade was a 2.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock worth $685,935 in the last ninety days. 0.03% of the stock is currently owned by company insiders.

Starbucks Price Performance

Shares of Starbucks stock opened at $103.20 on Thursday. The company has a 50-day moving average of $99.25 and a 200 day moving average of $99.55. The firm has a market cap of $117.65 billion, a price-to-earnings ratio of 59.31, a PEG ratio of 1.44 and a beta of 0.98. 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 posted its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, topping the consensus estimate of $0.66 by $0.19. The business had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. Starbucks’s quarterly revenue was down 1.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.50 earnings per share. On average, equities analysts anticipate that Starbucks Corporation will post 2.65 EPS for the current 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 issued a dividend of $0.63 per share. The ex-dividend date is Friday, November 13th. This is a positive change from Starbucks’s previous quarterly dividend of $0.62. This represents a $2.52 annualized dividend and a dividend yield of 2.4%. Starbucks’s dividend payout ratio (DPR) is 144.83%.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on SBUX shares. Gordon Haskett lifted their price objective on Starbucks from $110.00 to $118.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. TD Cowen reissued a “buy” rating on shares of Starbucks in a research report on Monday, September 21st. DA Davidson reissued a “neutral” rating and issued a $110.00 target price on shares of Starbucks in a research report on Friday, October 9th. Guggenheim started coverage on Starbucks in a research note on Monday, August 3rd. They issued a “buy” rating for the company. Finally, Weiss Ratings upgraded Starbucks from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Twenty-four equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, Starbucks has an average rating of “Moderate Buy” and an average target price of $110.14.

Get Our Latest Stock Report on SBUX

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

  • Positive Sentiment: Investors expect Starbucks’ “Back to Starbucks” plan—focused on coffee quality, service and the customer experience—to support stronger U.S. comparable-store sales. Cost savings and improved operating execution could also provide an earnings boost. Starbucks to Post Q4 Earnings: What’s in the Cards for the Stock?
  • Positive Sentiment: The company’s prior quarter exceeded analyst expectations for both revenue and earnings, while full-year guidance was reportedly ahead of consensus. That track record is helping sustain bullish sentiment ahead of the new report. Is Starbucks Fully Valued on Strong Guidance and Recent Results?
  • Positive Sentiment: Starbucks maintained its annual dividend-raise streak, supporting the investment case for income-oriented shareholders. The payout is expected to be a key focus because investors are assessing whether free cash flow adequately covers the dividend. Did Starbucks Just Give Investors Nearly $2.9 Billion Reasons to Buy Its Stock?
  • Neutral Sentiment: Options markets imply a potentially sizable move of approximately 6.33% following earnings, highlighting elevated volatility around the report. Starbucks Q4 Earnings Are on October 29
  • Negative Sentiment: At roughly 59 times earnings, Starbucks appears richly valued relative to its recent revenue performance. Revenue in the prior quarter declined 1.4% year over year, so any weakness in same-store sales, gross margin or forward guidance could pressure the shares. Starbucks Q3 Earnings Preview
  • Negative Sentiment: Starbucks is closing additional company-operated and airport locations, with associated job losses. While closures may improve the store portfolio and profitability over time, they also signal continuing operational challenges. Starbucks Shuts More Coffeehouses

About Starbucks

(Free Report)

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.

Further Reading

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Institutional Ownership by Quarter for Starbucks (NASDAQ:SBUX)

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