Diamond Hill Capital Management Inc. Trims Holdings in Starbucks Corporation $SBUX

Diamond Hill Capital Management Inc. trimmed its stake in Starbucks Corporation (NASDAQ:SBUX) by 7.6% during the fourth quarter, Holdings Channel.com reports. The fund owned 2,771,343 shares of the coffee company’s stock after selling 227,000 shares during the period. Diamond Hill Capital Management Inc.’s holdings in Starbucks were worth $233,375,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Hexagon Capital Partners LLC raised its stake in shares of Starbucks by 1.9% in the 4th quarter. Hexagon Capital Partners LLC now owns 10,997 shares of the coffee company’s stock valued at $926,000 after acquiring an additional 210 shares during the period. Global Retirement Partners LLC increased its stake in Starbucks by 10.0% during the 4th quarter. Global Retirement Partners LLC now owns 58,816 shares of the coffee company’s stock worth $4,953,000 after buying an additional 5,329 shares during the period. Fortis Group Advisors LLC increased its stake in Starbucks by 1,869.8% during the 4th quarter. Fortis Group Advisors LLC now owns 11,031 shares of the coffee company’s stock worth $1,010,000 after buying an additional 10,471 shares during the period. Griffin Asset Management Inc. increased its stake in Starbucks by 5.3% during the 4th quarter. Griffin Asset Management Inc. now owns 119,703 shares of the coffee company’s stock worth $10,080,000 after buying an additional 6,069 shares during the period. Finally, CWS Financial Advisors LLC increased its stake in Starbucks by 10.5% during the 4th quarter. CWS Financial Advisors LLC now owns 5,550 shares of the coffee company’s stock worth $467,000 after buying an additional 528 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on SBUX. Zacks Research raised shares of Starbucks from a “hold” rating to a “strong-buy” rating in a research note on Friday, May 15th. Barclays set a $116.00 target price on shares of Starbucks and gave the stock an “overweight” rating in a research note on Friday, January 30th. Dbs Bank raised shares of Starbucks from a “strong sell” rating to a “moderate sell” rating in a research note on Friday, March 20th. Scotiabank downgraded shares of Starbucks from a “market perform” rating to an “underperform” rating in a research note on Thursday, May 14th. Finally, Wedbush began coverage on shares of Starbucks in a research note on Thursday, May 14th. They set an “outperform” rating on the stock. One equities 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 company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $107.48.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks announced CEO Brian Niccol and CFO Cathy Smith will host a fireside chat at the Bernstein 42nd Annual Strategic Decisions Conference on May 28, giving investors another opportunity to hear updated strategy and turnaround progress. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Positive Sentiment: Starbucks completed a cash tender offer to refine its debt profile, a move that can improve financial flexibility and strengthen the balance sheet. Starbucks Completes Cash Tender Offer, Refines Debt Profile
• Neutral Sentiment: Starbucks is drawing attention for its summer menu rollout and new promotions, which could help seasonal traffic but are not yet a clear earnings catalyst. Starbucks drops another summer surprise as competition heats up
• Neutral Sentiment: Analyst-style coverage comparing Starbucks to retail and wholesale peers is mostly informational and does not appear to be driving a major stock-specific move. Starbucks’ China JV Shift Reshapes Revenue and Margin Outlook
• Negative Sentiment: Starbucks said it is cutting another 300 jobs and taking about $400 million in restructuring charges as part of a $2 billion cost-reduction push, highlighting the cost of its turnaround. Starbucks Cuts Another 300 Jobs Amid $2 Billion Cost Reduction Push
• Negative Sentiment: Environmental reporting alleging Starbucks’ “widely recyclable” cold cups often end up in trash could hurt brand perception and invite more criticism around sustainability claims. Widely Recyclable Cold Cups Seldom Reach Recycling, Study Finds, and Starbucks Stock Pays the Price
• Negative Sentiment: Reports that Starbucks’ China JV shift will reduce reported revenue in China, even if it boosts margins and adds cash, may pressure near-term sales expectations. Starbucks’ China JV Shift Reshapes Revenue and Margin Outlook

Starbucks Stock Down 2.2%

NASDAQ SBUX opened at $104.13 on Friday. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $108.88. The stock has a market capitalization of $118.68 billion, a PE ratio of 78.89, a price-to-earnings-growth ratio of 2.15 and a beta of 1.01. The firm has a 50 day moving average of $98.62 and a two-hundred day moving average of $93.03.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.44 by $0.06. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The company had revenue of $9.53 billion during the quarter, compared to analysts’ expectations of $9.17 billion. During the same quarter in the previous year, the business posted $0.41 EPS. The firm’s revenue was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, equities research analysts expect that Starbucks Corporation will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be issued a $0.62 dividend. The ex-dividend date is Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. Starbucks’s dividend payout ratio is presently 187.88%.

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the company’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the transaction, the chief executive officer owned 81,559 shares in the company, valued at approximately $8,548,198.79. This represents a 2.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,500 shares of the company’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total transaction of $242,800.00. Following the completion of the transaction, the executive vice president owned 59,609 shares of the company’s stock, valued at approximately $5,789,226.08. The trade was a 4.03% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 11,187 shares of company stock valued at $1,111,085. Company 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.