Jefferies Financial Group Inc. Acquires Shares of 499,503 Starbucks Corporation $SBUX

Jefferies Financial Group Inc. purchased a new position in Starbucks Corporation (NASDAQ:SBUX) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 499,503 shares of the coffee company’s stock, valued at approximately $51,044,000.

A number of other institutional investors have also added to or reduced their stakes in SBUX. Capital World Investors increased its stake in shares of Starbucks by 9.0% in the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock worth $7,135,228,000 after acquiring an additional 7,007,268 shares in the last quarter. BlackRock Inc. bought a new stake in Starbucks during the second quarter worth about $8,504,509,000. State Street Corp grew its holdings in Starbucks by 0.7% in the fourth quarter. State Street Corp now owns 47,869,056 shares of the coffee company’s stock worth $4,031,053,000 after purchasing an additional 327,161 shares during the period. Geode Capital Management LLC grew its holdings in Starbucks by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock worth $2,212,153,000 after purchasing an additional 225,168 shares during the period. Finally, T. Rowe Price Investment Management Inc. increased its stake in shares of Starbucks by 65.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock valued at $1,637,704,000 after purchasing an additional 7,725,547 shares in the last quarter. Institutional investors own 72.29% of the company’s stock.

Insider Buying and Selling

In other news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total transaction of $236,251.71. Following the sale, the chief executive officer directly owned 75,135 shares in the company, valued at $7,963,558.65. This trade represents a 2.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 6,687 shares of company stock worth $681,663. 0.03% of the stock is currently owned by company insiders.

Starbucks Stock Performance

Shares of NASDAQ:SBUX opened at $107.26 on Friday. The firm has a market cap of $122.28 billion, a price-to-earnings ratio of 61.64, a price-to-earnings-growth ratio of 1.87 and a beta of 0.97. The business has a 50-day simple moving average of $104.95 and a two-hundred day simple moving average of $100.73. Starbucks Corporation has a fifty-two week low of $77.99 and a fifty-two week high of $110.51.

Starbucks (NASDAQ:SBUX) last announced its 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 net margin of 5.17% and a negative return on equity of 34.10%. The business had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same period in the previous year, the business earned $0.50 EPS. The company’s quarterly revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, research analysts predict that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.62 per share. The ex-dividend date is Friday, August 14th. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. Starbucks’s dividend payout ratio (DPR) is presently 142.53%.

Key Headlines Impacting Starbucks

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

Wall Street Analysts Forecast Growth

Several research firms have commented on SBUX. Scotiabank downgraded Starbucks from a “market perform” rating to an “underperform” rating in a report on Thursday, May 14th. BTIG Research restated a “buy” rating and set a $115.00 price target on shares of Starbucks in a report on Friday, July 31st. Citigroup lifted their price target on Starbucks from $108.00 to $112.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. Needham & Company LLC set a $120.00 price objective on shares of Starbucks in a research report on Tuesday, August 18th. Finally, Evercore restated an “outperform” rating on shares of Starbucks in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Starbucks has an average rating of “Hold” and an average price target of $110.30.

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.