Callahan Advisors LLC Cuts Position in Starbucks Corporation $SBUX

Callahan Advisors LLC cut its holdings in Starbucks Corporation (NASDAQ:SBUX) by 78.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,393 shares of the coffee company’s stock after selling 8,742 shares during the period. Callahan Advisors LLC’s holdings in Starbucks were worth $201,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Capital Research Global Investors boosted its position in Starbucks by 11.4% in the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock worth $7,229,968,000 after purchasing an additional 8,774,198 shares during the last quarter. Corient Private Wealth LLC grew its stake in Starbucks by 146.6% in the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock valued at $553,201,000 after purchasing an additional 3,596,014 shares during the period. Capital International Investors increased its position in shares of Starbucks by 22.5% during the 3rd quarter. Capital International Investors now owns 14,691,772 shares of the coffee company’s stock valued at $1,243,104,000 after purchasing an additional 2,699,479 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Starbucks by 80.6% during the 3rd quarter. Ameriprise Financial Inc. now owns 5,105,164 shares of the coffee company’s stock valued at $433,923,000 after purchasing an additional 2,277,792 shares during the last quarter. Finally, Capital World Investors raised its stake in shares of Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company’s stock worth $6,575,430,000 after purchasing an additional 1,462,874 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks announced CEO Brian Niccol and CFO Cathy Smith will host a fireside chat at the Bernstein 42nd Annual Strategic Decisions Conference on May 28, giving investors another opportunity to hear updated strategy and turnaround progress. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Positive Sentiment: Starbucks completed a cash tender offer to refine its debt profile, a move that can improve financial flexibility and strengthen the balance sheet. Starbucks Completes Cash Tender Offer, Refines Debt Profile
• Neutral Sentiment: Starbucks is drawing attention for its summer menu rollout and new promotions, which could help seasonal traffic but are not yet a clear earnings catalyst. Starbucks drops another summer surprise as competition heats up
• Neutral Sentiment: Analyst-style coverage comparing Starbucks to retail and wholesale peers is mostly informational and does not appear to be driving a major stock-specific move. Starbucks’ China JV Shift Reshapes Revenue and Margin Outlook
• Negative Sentiment: Starbucks said it is cutting another 300 jobs and taking about $400 million in restructuring charges as part of a $2 billion cost-reduction push, highlighting the cost of its turnaround. Starbucks Cuts Another 300 Jobs Amid $2 Billion Cost Reduction Push
• Negative Sentiment: Environmental reporting alleging Starbucks’ “widely recyclable” cold cups often end up in trash could hurt brand perception and invite more criticism around sustainability claims. Widely Recyclable Cold Cups Seldom Reach Recycling, Study Finds, and Starbucks Stock Pays the Price
• Negative Sentiment: Reports that Starbucks’ China JV shift will reduce reported revenue in China, even if it boosts margins and adds cash, may pressure near-term sales expectations. Starbucks’ China JV Shift Reshapes Revenue and Margin Outlook

Starbucks Stock Down 2.2%

SBUX opened at $104.13 on Friday. The company has a market capitalization of $118.68 billion, a price-to-earnings ratio of 78.89, a PEG ratio of 2.15 and a beta of 1.01. The firm has a 50-day moving average price of $98.62 and a 200-day moving average price of $93.03. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $108.88.

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

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, May 15th. Starbucks’s dividend payout ratio (DPR) is presently 187.88%.

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer owned 81,559 shares of the company’s stock, valued at approximately $8,548,198.79. This represents a 2.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,500 shares of the firm’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the transaction, the executive vice president owned 59,609 shares of the company’s stock, valued at approximately $5,789,226.08. This represents a 4.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 11,187 shares of company stock valued at $1,111,085 over the last ninety days. Corporate insiders own 0.03% of the company’s stock.

Analysts Set New Price Targets

SBUX has been the topic of a number of research analyst reports. The Goldman Sachs Group downgraded shares of Starbucks from a “neutral” rating to a “neutral” rating in a report on Thursday, May 14th. BTIG Research lowered shares of Starbucks from a “buy” rating to a “neutral” rating in a research report on Thursday, May 14th. Morgan Stanley raised shares of Starbucks from an “overweight” rating to an “overweight” rating in a research report on Thursday, May 14th. BNP Paribas Exane began coverage on shares of Starbucks in a research note on Thursday, May 14th. They set an “underperform” rating for the company. Finally, UBS Group cut shares of Starbucks from a “neutral” rating to a “neutral” rating in a report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $107.48.

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.