Dearborn Partners LLC Buys New Shares in Starbucks Corporation $SBUX

Dearborn Partners LLC purchased a new stake in Starbucks Corporation (NASDAQ:SBUX) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 37,006 shares of the coffee company’s stock, valued at approximately $3,782,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks in the fourth quarter valued at about $25,000. Phillip James Consulting Co. acquired a new position in Starbucks during the fourth quarter valued at approximately $25,000. Meeder Asset Management Inc. bought a new position in Starbucks in the second quarter valued at approximately $25,000. Entrust Financial LLC bought a new position in Starbucks in the fourth quarter valued at approximately $26,000. Finally, Kelleher Financial Advisors acquired a new position in shares of Starbucks during the 3rd quarter worth approximately $27,000. 72.29% of the stock is owned by institutional investors.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Analyst upgrade: Robert W. Baird upgraded Starbucks to “strong buy,” signaling confidence in the company’s turnaround prospects and potentially supporting investor sentiment. Zacks report
• Positive Sentiment: Fall menu and marketing: Starbucks launched its seasonal menu, including the Pumpkin Spice Latte, supported by advertising featuring Martha Stewart. The promotion could drive customer traffic and strengthen seasonal sales. Starbucks launches fall menu Pumpkin Spice Latte advertising
• Positive Sentiment: Property transactions: A corporate Starbucks drive-thru in Jacksonville, Florida, was included in a $6.9 million pair of net-lease deals. While not a material financial event for Starbucks, the transaction highlights ongoing investor demand for Starbucks-occupied properties. Starbucks net-lease transaction
• Neutral Sentiment: Valuation and operating backdrop: Starbucks recently exceeded quarterly earnings and revenue expectations, but revenue declined year over year. With a relatively high earnings multiple, investors may require sustained improvement from the company’s turnaround plan.
• Negative Sentiment: Union-led boycott: Starbucks Workers United called for a boycott tied to stalled contract negotiations, seeking $17 hourly wages and a contract covering more than 12,000 baristas. The action presents near-term traffic, sales and reputational risks. Starbucks union boycott
• Negative Sentiment: Consumer caution: Reports questioning whether consumers are rethinking coffee purchases raise concerns about traffic and demand, particularly if customers trade down or reduce premium beverage spending. Consumer caution report
• Negative Sentiment: Turnaround costs: Additional job cuts as Starbucks expands its roughly $2 billion overhaul may pressure near-term morale and execution, even though management expects restructuring to improve efficiency over time. Starbucks job cuts and turnaround

Starbucks Trading Down 1.1%

Shares of NASDAQ SBUX opened at $107.26 on Friday. The company has a market capitalization of $122.28 billion, a P/E ratio of 61.64, a P/E/G ratio of 1.87 and a beta of 0.97. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $110.51. The stock has a 50 day moving average of $104.95 and a 200-day moving average of $100.73.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.19. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The business had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. During the same quarter in the prior year, the business earned $0.50 EPS. The firm’s revenue for the quarter was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Analysts predict that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. Starbucks’s dividend payout ratio is presently 142.53%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on SBUX shares. UBS Group increased their price objective on Starbucks from $105.00 to $112.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. BTIG Research reaffirmed a “buy” rating and set a $115.00 price target on shares of Starbucks in a research report on Friday, July 31st. Morgan Stanley cut shares of Starbucks from an “overweight” rating to an “underweight” rating in a research note on Monday, August 3rd. Weiss Ratings reissued a “hold (c)” rating on shares of Starbucks in a research report on Monday, July 20th. Finally, Stifel Nicolaus set a $117.00 price objective on shares of Starbucks and gave the stock a “buy” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $110.30.

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total transaction of $236,251.71. Following the completion of the sale, the chief executive officer owned 75,135 shares of the company’s stock, valued at approximately $7,963,558.65. The trade was a 2.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 6,687 shares of company stock worth $681,663. Company insiders own 0.03% of the company’s stock.

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.