Federated Hermes Inc. Decreases Stock Holdings in Starbucks Corporation $SBUX

Federated Hermes Inc. cut its stake in Starbucks Corporation (NASDAQ:SBUX) by 91.7% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 4,858 shares of the coffee company’s stock after selling 53,386 shares during the quarter. Federated Hermes Inc.’s holdings in Starbucks were worth $411,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in the stock. Nordea Investment Management AB boosted its position in shares of Starbucks by 3.2% in the third quarter. Nordea Investment Management AB now owns 433,112 shares of the coffee company’s stock worth $36,576,000 after purchasing an additional 13,262 shares during the period. Morningstar Investment Management LLC purchased a new position in shares of Starbucks during the 2nd quarter valued at $653,000. Asset Management One Co. Ltd. boosted its holdings in Starbucks by 3.1% in the 3rd quarter. Asset Management One Co. Ltd. now owns 548,768 shares of the coffee company’s stock worth $46,426,000 after buying an additional 16,428 shares during the period. Pegasus Asset Management Inc. purchased a new stake in Starbucks in the 2nd quarter worth $1,289,000. Finally, Allstate Corp bought a new stake in Starbucks during the third quarter valued at about $3,491,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Price Performance

NASDAQ SBUX opened at $99.45 on Monday. Starbucks Corporation has a 1-year low of $75.50 and a 1-year high of $117.46. The business has a 50 day simple moving average of $89.04 and a two-hundred day simple moving average of $87.12. The stock has a market capitalization of $113.30 billion, a PE ratio of 82.19, a P/E/G ratio of 2.22 and a beta of 0.96.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Wednesday, January 28th. The coffee company reported $0.56 EPS for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.03). Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. The firm had revenue of $9.92 billion for the quarter, compared to the consensus estimate of $9.62 billion. During the same quarter in the prior year, the company posted $0.69 earnings per share. The firm’s revenue was up 5.5% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. On average, analysts anticipate that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Friday, February 13th. Starbucks’s dividend payout ratio is currently 204.96%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SBUX. New Street Research set a $90.00 price objective on Starbucks in a research note on Tuesday, January 27th. Mizuho boosted their price target on Starbucks from $86.00 to $95.00 and gave the stock a “neutral” rating in a report on Monday, January 26th. Susquehanna set a $114.00 price target on Starbucks in a research note on Wednesday, January 21st. Bank of America increased their price objective on shares of Starbucks from $106.00 to $114.00 and gave the company a “buy” rating in a report on Wednesday, January 21st. Finally, Dbs Bank downgraded shares of Starbucks from a “hold” rating to a “strong sell” rating in a report on Friday, November 7th. Eighteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Starbucks presently has a consensus rating of “Moderate Buy” and an average price target of $104.67.

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.