T. Rowe Price Investment Management Inc. Has $1.64 Billion Stake in Starbucks Corporation $SBUX

T. Rowe Price Investment Management Inc. increased its holdings in shares of Starbucks Corporation (NASDAQ:SBUX) by 65.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 19,447,854 shares of the coffee company’s stock after buying an additional 7,725,547 shares during the period. Starbucks accounts for about 1.0% of T. Rowe Price Investment Management Inc.’s investment portfolio, making the stock its 18th biggest holding. T. Rowe Price Investment Management Inc.’s holdings in Starbucks were worth $1,637,704,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Rachor Investment Advisory Services LLC acquired a new stake in Starbucks during the 4th quarter worth $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Starbucks in the 4th quarter valued at $25,000. Y.D. More Investments Ltd acquired a new position in shares of Starbucks in the 3rd quarter valued at $26,000. Entrust Financial LLC bought a new position in shares of Starbucks in the 4th quarter worth $26,000. Finally, Tucker Asset Management LLC bought a new position in shares of Starbucks in the 4th quarter worth $27,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is accelerating expansion in India, with plans to open about 100 new stores a year. That suggests management still sees strong long-term demand in a key international market and reinforces the company’s global growth story. Starbucks Plans Faster India Growth
• Positive Sentiment: Retail-sales data continued to look solid, and Starbucks was highlighted as one of the stocks that could benefit from robust consumer demand and improving earnings expectations. 5 Stocks to Grab as Retail Sales Continue to Surge on Robust Demand
• Positive Sentiment: Another market piece also flagged Starbucks among names to watch as retail sales stay resilient, which can support the stock by signaling that consumer spending on coffee and drinks remains healthy. 5 Stocks to Grab as Retail Sales Continue to Surge on Robust Demand
• Neutral Sentiment: Coverage around Starbucks’s store closures suggests the company is pursuing a broader reset, trimming some locations while investing in café upgrades and operational changes. Investors may view this as a long-term brand refresh, but it also shows the turnaround is still in progress. The Real Reason Starbucks Is Closing Stores
• Negative Sentiment: Recent trading updates noted Starbucks underperformed peers and fell on the prior session, reflecting some near-term pressure despite the longer-term growth narrative. Starbucks Corp. stock underperforms Wednesday when compared to competitors
• Negative Sentiment: Some commentary focused on Starbucks trading lower versus the broader market, which may have weighed on sentiment heading into today. Starbucks (SBUX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Starbucks Stock Performance

Shares of SBUX opened at $100.65 on Friday. The firm has a market cap of $114.71 billion, a P/E ratio of 76.25, a PEG ratio of 1.97 and a beta of 0.98. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $108.88. The firm’s 50 day moving average price is $100.93 and its two-hundred day moving average price is $95.13.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.44 by $0.06. The business had revenue of $9.53 billion for 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 firm’s quarterly revenue was up 8.8% on a year-over-year basis. During the same period last year, the business posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, sell-side analysts anticipate 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. Stockholders of record on Friday, May 15th were issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Friday, May 15th. Starbucks’s payout ratio is 187.88%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on SBUX. Scotiabank downgraded Starbucks from a “market perform” rating to an “underperform” rating in a report on Thursday, May 14th. Sanford C. Bernstein restated an “outperform” rating on shares of Starbucks in a research report on Wednesday, March 4th. Citigroup increased their price target on shares of Starbucks from $99.00 to $101.00 and gave the company a “neutral” rating in a research report on Wednesday, April 29th. 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. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starbucks in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $107.93.

Insider Activity

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total value of $233,621.49. Following the sale, the chief executive officer owned 81,559 shares in the company, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their position. The transaction was disclosed in a legal 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 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total value of $210,000.00. Following the transaction, the executive vice president directly owned 57,653 shares of the company’s stock, valued at approximately $6,053,565. This trade represents a 3.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,687 shares of company stock valued at $863,707 over the last ninety days. 0.03% of the stock is owned by insiders.

About Starbucks

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.