Hayek Kallen Investment Management Invests $1.49 Million in Starbucks Corporation $SBUX

Hayek Kallen Investment Management purchased a new stake in Starbucks Corporation (NASDAQ:SBUX) during the 2nd quarter, HoldingsChannel.com reports. The firm purchased 14,537 shares of the coffee company’s stock, valued at approximately $1,486,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Cornerstone Financial Management LLC bought a new position in Starbucks in the fourth quarter valued at approximately $25,000. Phillip James Consulting Co. bought a new stake in shares of Starbucks during the 4th quarter valued at $25,000. Meeder Asset Management Inc. bought a new stake in shares of Starbucks during the 2nd quarter valued at $25,000. Entrust Financial LLC acquired a new position in shares of Starbucks in the 4th quarter valued at $26,000. Finally, Tucker Asset Management LLC acquired a new position in shares of Starbucks in the 4th quarter valued at $27,000. 72.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently commented on SBUX. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $126.00 price objective on shares of Starbucks in a research note on Thursday, July 30th. Robert W. Baird upgraded Starbucks to a “strong-buy” rating in a report on Monday. The Goldman Sachs Group lowered Starbucks from a “neutral” rating to a “neutral” rating in a research report on Thursday, May 14th. Guggenheim started coverage on Starbucks in a research note on Monday, August 3rd. They issued a “buy” rating for the company. Finally, Stifel Nicolaus set a $117.00 price target on shares of Starbucks and gave the company a “buy” rating in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $110.30.

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was 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 directly owned 75,135 shares of the company’s stock, valued at approximately $7,963,558.65. This represents a 2.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 6,687 shares of company stock valued at $681,663. 0.03% of the stock is currently owned by insiders.

Starbucks Trading Down 1.1%

Shares of Starbucks stock opened at $107.26 on Friday. The company has a market capitalization of $122.28 billion, a PE ratio of 61.64, a PEG 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’s fifty day simple moving average is $104.95 and its 200 day simple moving average is $100.73.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) 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 firm had revenue of $9.32 billion during the quarter, compared to analysts’ expectations of $9.17 billion. During the same period in the previous year, the firm earned $0.50 earnings per share. The company’s revenue 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 firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks’s payout ratio is 142.53%.

Key Starbucks News

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 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.