Capital Research Global Investors Lowers Position in Starbucks Corporation $SBUX

Capital Research Global Investors lessened its stake in Starbucks Corporation (NASDAQ:SBUX) by 3.8% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 82,181,929 shares of the coffee company’s stock after selling 3,278,421 shares during the quarter. Starbucks makes up about 1.3% of Capital Research Global Investors’ investment portfolio, making the stock its 17th largest position. Capital Research Global Investors owned about 7.21% of Starbucks worth $6,920,566,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently modified their holdings of SBUX. Vanguard Group Inc. raised its stake in Starbucks by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company’s stock valued at $9,634,523,000 after purchasing an additional 971,773 shares in the last quarter. Capital World Investors raised its stake in Starbucks by 1.9% during the third quarter. Capital World Investors now owns 77,720,137 shares of the coffee company’s stock valued at $6,575,430,000 after purchasing an additional 1,462,874 shares in the last quarter. Geode Capital Management LLC raised its stake in Starbucks by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock valued at $2,212,153,000 after purchasing an additional 225,168 shares in the last quarter. Capital International Investors raised its stake in Starbucks by 7.3% during the fourth quarter. Capital International Investors now owns 15,758,440 shares of the coffee company’s stock valued at $1,327,245,000 after purchasing an additional 1,066,668 shares in the last quarter. Finally, Norges Bank purchased a new stake in Starbucks during the fourth quarter valued at $1,232,650,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Several articles frame Starbucks as a potential turnaround story, with commentary noting improving traffic, rewards growth, innovation, and margin-recovery efforts that could support a rebound. SBUX Down 9% in a Month: Is This the Right Time to Buy the Stock?
• Positive Sentiment: Starbucks is reportedly tying part of tech workers’ bonuses to AI usage, signaling management is pushing harder on productivity and technology adoption, which investors may view as a margin and efficiency positive. Starbucks (SBUX) Ties Part of Tech Bonuses to AI Usage
• Positive Sentiment: Coverage comparing Starbucks with Chipotle argued that Starbucks’ turnaround looks more credible than other beaten-down restaurant names, which can reinforce investor confidence in the stock. Chipotle vs Starbucks: One Turnaround Is Real, One Is Just Smoke
• Neutral Sentiment: One article revisited Starbucks’ long-term returns versus McDonald’s, which is more historical context than a direct catalyst for the stock. If you had invested $1,000 in McDonald’s or Starbucks 10 years ago, here’s what you’d have now
• Negative Sentiment: Headline risk remains around Starbucks’ operations, including criticism of an “unreliable” AI inventory system and a separate legal-focused article questioning whether insiders breached fiduciary duties, both of which can add pressure to sentiment. “Unreliable” AI Inventory System Gone at Starbucks, Starbucks Stock (NASDAQ:SBUX) Ticks Down Did Starbucks Corporation Insiders Breach their Fiduciary Duties to Shareholders?

Starbucks Stock Up 1.2%

SBUX stock opened at $95.29 on Friday. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $108.88. The stock has a market capitalization of $108.60 billion, a price-to-earnings ratio of 72.19, a price-to-earnings-growth ratio of 1.88 and a beta of 0.98. The firm’s fifty day simple moving average is $99.24 and its two-hundred day simple moving average is $94.10.

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

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 15th were given a dividend of $0.62 per share. The ex-dividend date was Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a yield of 2.6%. Starbucks’s payout ratio is 187.88%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on SBUX shares. Jefferies Financial Group started coverage on shares of Starbucks in a research note on Thursday, May 14th. They set a “buy” rating on the stock. BNP Paribas Exane started coverage on shares of Starbucks in a research note on Thursday, May 14th. They set an “underperform” rating on the stock. UBS Group downgraded shares of Starbucks from a “neutral” rating to a “neutral” rating in a research note on Thursday, May 14th. Dbs Bank raised shares of Starbucks from a “strong sell” rating to a “moderate sell” rating in a research note on Friday, March 20th. Finally, BTIG Research downgraded shares of Starbucks from a “buy” rating to a “neutral” rating in a research note on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Starbucks has an average rating of “Moderate Buy” and an average target price of $107.48.

Insiders Place Their Bets

In other news, CEO Brady Brewer sold 2,229 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the transaction, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. This represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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 dated Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the completion of the transaction, the executive vice president owned 57,653 shares in the company, valued at approximately $6,053,565. The trade was a 3.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,046 shares of company stock worth $708,911 in the last quarter. Company insiders own 0.03% of the company’s stock.

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.