Jefferies Financial Group Inc. Boosts Holdings in Starbucks Corporation $SBUX

Jefferies Financial Group Inc. raised its stake in shares of Starbucks Corporation (NASDAQ:SBUX) by 94.5% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 94,260 shares of the coffee company’s stock after purchasing an additional 45,794 shares during the period. Jefferies Financial Group Inc.’s holdings in Starbucks were worth $7,938,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Collier Financial purchased a new position in Starbucks during the third quarter valued at $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 purchased a new position in Starbucks during the third quarter valued at $26,000. Entrust Financial LLC purchased a new position in Starbucks during the fourth quarter valued at $26,000. Finally, Tucker Asset Management LLC purchased a new position in Starbucks during the fourth quarter valued at $27,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, EVP Sara Kelly sold 2,000 shares of the firm’s stock in a transaction dated Wednesday, April 29th. The shares were 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 directly owned 57,653 shares in the company, 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 document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 owned 81,559 shares of the company’s stock, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 11,187 shares of company stock valued at $1,111,085. 0.03% of the stock is owned by company insiders.

Analysts Set New Price Targets

SBUX has been the topic of several recent analyst reports. Citizens Jmp initiated coverage on shares of Starbucks in a report on Monday, March 30th. They set an “underperform” rating and a $84.00 price objective on the stock. BMO Capital Markets reaffirmed an “outperform” rating and set a $120.00 price objective on shares of Starbucks in a report on Friday, January 30th. Wolfe Research initiated coverage on shares of Starbucks in a report on Monday, March 9th. They set a “peer perform” rating on the stock. Jefferies Financial Group initiated coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued a “buy” rating for the company. Finally, Tigress Financial initiated coverage on shares of Starbucks in a research report on Wednesday, April 15th. They issued a “buy” rating and a $122.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $107.48.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Negative Sentiment: Starbucks abandoned its AI inventory tool after finding counting errors and mislabeled items, suggesting a setback in its technology rollout and potential operational inefficiency. Starbucks scraps AI inventory tool after nine months
• Negative Sentiment: Reuters-based reports say the company paused the tool after workers reported stocking problems, reinforcing concerns that the AI system was not ready for broad use. Starbucks scraps AI inventory tool across North America: Reuters
• Neutral Sentiment: Starbucks also announced it will participate in the Bernstein 42nd Annual Strategic Decisions Conference next week, giving management another opportunity to address the turnaround, cost cuts, and operating changes. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Neutral Sentiment: The company’s latest China joint-venture restructuring is also shifting revenue recognition and improving margins, but that news is more of a longer-term financial reset than a direct same-day stock driver. Starbucks’ China JV Shift Reshapes Revenue and Margin Outlook

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $103.11 on Monday. The firm has a 50-day simple moving average of $98.65 and a 200-day simple moving average of $93.19. The stock has a market capitalization of $117.51 billion, a price-to-earnings ratio of 78.11, a price-to-earnings-growth ratio of 2.08 and a beta of 1.01. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $108.88.

Starbucks (NASDAQ:SBUX) last issued 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. The business 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%. The company’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, equities research analysts expect that Starbucks Corporation will post 2.42 EPS for the current year.

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a yield of 2.4%. The ex-dividend date is Friday, May 15th. Starbucks’s dividend payout ratio (DPR) is presently 187.88%.

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.