Capital International Investors Increases Holdings in Starbucks Corporation $SBUX

Capital International Investors boosted its holdings in shares of Starbucks Corporation (NASDAQ:SBUX) by 7.3% during the fourth quarter, Holdings Channel reports. The firm owned 15,758,440 shares of the coffee company’s stock after acquiring an additional 1,066,668 shares during the quarter. Capital International Investors’ holdings in Starbucks were worth $1,327,245,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Collier Financial purchased a new position in Starbucks during the 3rd quarter valued at about $25,000. Rachor Investment Advisory Services LLC purchased a new position in Starbucks during the 4th quarter valued at about $25,000. Y.D. More Investments Ltd purchased a new position in Starbucks during the 3rd quarter valued at about $26,000. Entrust Financial LLC purchased a new position in Starbucks during the 4th quarter valued at about $26,000. Finally, Tucker Asset Management LLC purchased a new position in Starbucks during the 4th quarter valued at about $27,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Stock Performance

SBUX stock opened at $95.29 on Friday. The firm has a 50 day moving average price of $99.24 and a 200-day moving average price of $94.10. Starbucks Corporation has a 52-week low of $77.99 and a 52-week high of $108.88. The firm has a market capitalization of $108.60 billion, a price-to-earnings ratio of 72.19, a PEG ratio of 1.88 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.06. The firm had revenue of $9.53 billion during the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business’s revenue was up 8.8% on a year-over-year basis. During the same period last 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, sell-side analysts forecast that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were given a dividend of $0.62 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.6%. Starbucks’s dividend payout ratio (DPR) is 187.88%.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on 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 directly owned 81,559 shares of the company’s stock, valued at $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the sale, the executive vice president directly owned 57,653 shares in the company, valued at $6,053,565. This trade represents a 3.35% 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. Insiders have sold 7,046 shares of company stock valued at $708,911 in the last three months. 0.03% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

SBUX has been the topic of several research reports. Scotiabank cut Starbucks from a “market perform” rating to an “underperform” rating in a research report on Thursday, May 14th. Wolfe Research initiated coverage on Starbucks in a research report on Monday, March 9th. They set a “peer perform” rating on the stock. Guggenheim reaffirmed a “neutral” rating and set a $97.00 price objective (up from $95.00) on shares of Starbucks in a research report on Wednesday, April 29th. TD Cowen raised Starbucks from a “hold” rating to a “buy” rating and lifted their price objective for the company from $106.00 to $120.00 in a research report on Thursday, May 14th. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $107.48.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Several articles frame Starbucks as a potential turnaround story, with commentary noting improving traffic, rewards growth, innovation, and margin-recovery efforts that could support a rebound. SBUX Down 9% in a Month: Is This the Right Time to Buy the Stock?
• Positive Sentiment: Starbucks is reportedly tying part of tech workers’ bonuses to AI usage, signaling management is pushing harder on productivity and technology adoption, which investors may view as a margin and efficiency positive. Starbucks (SBUX) Ties Part of Tech Bonuses to AI Usage
• Positive Sentiment: Coverage comparing Starbucks with Chipotle argued that Starbucks’ turnaround looks more credible than other beaten-down restaurant names, which can reinforce investor confidence in the stock. Chipotle vs Starbucks: One Turnaround Is Real, One Is Just Smoke
• Neutral Sentiment: One article revisited Starbucks’ long-term returns versus McDonald’s, which is more historical context than a direct catalyst for the stock. If you had invested $1,000 in McDonald’s or Starbucks 10 years ago, here’s what you’d have now
• Negative Sentiment: Headline risk remains around Starbucks’ operations, including criticism of an “unreliable” AI inventory system and a separate legal-focused article questioning whether insiders breached fiduciary duties, both of which can add pressure to sentiment. “Unreliable” AI Inventory System Gone at Starbucks, Starbucks Stock (NASDAQ:SBUX) Ticks Down Did Starbucks Corporation Insiders Breach their Fiduciary Duties to Shareholders?

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.