Hayek Kallen Investment Management Buys New Stake in Starbucks Corporation $SBUX

Hayek Kallen Investment Management acquired a new position in Starbucks Corporation (NASDAQ:SBUX) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 14,537 shares of the coffee company’s stock, valued at approximately $1,486,000.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Meeder Asset Management Inc. bought a new position in shares of Starbucks during the 2nd quarter worth about $25,000. Black Cypress Capital Management LLC acquired a new position in shares of Starbucks in the 2nd quarter valued at $27,000. Phillip James Consulting Co. acquired a new position in shares of Starbucks in the 4th quarter valued at $25,000. Cornerstone Financial Management LLC bought a new position in shares of Starbucks during the 4th quarter worth about $25,000. Finally, Entrust Financial LLC bought a new position in shares of Starbucks during the 4th quarter worth about $26,000. Institutional investors own 72.29% of the company’s stock.

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction 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 sale, the chief executive officer owned 75,135 shares in the company, valued at approximately $7,963,558.65. This represents a 2.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,687 shares of company stock worth $681,663 in the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

SBUX has been the topic of a number of analyst reports. Zacks Research cut shares of Starbucks from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Jefferies Financial Group began coverage on shares of Starbucks in a research note on Thursday, May 14th. They set a “buy” rating for the company. Wells Fargo & Company downgraded Starbucks from an “overweight” rating to an “underweight” rating in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $126.00 price objective on shares of Starbucks in a research note on Thursday, July 30th. Finally, BTIG Research reissued a “buy” rating and issued a $115.00 target price on shares of Starbucks in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $110.30.

Starbucks Stock Down 1.1%

Shares of Starbucks stock opened at $107.26 on Friday. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $110.51. The stock has a market capitalization of $122.28 billion, a P/E ratio of 61.64, a price-to-earnings-growth ratio of 1.87 and a beta of 0.97. The company has a 50-day simple moving average of $104.95 and a 200 day simple moving average of $100.73.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, beating analysts’ consensus estimates of $0.66 by $0.19. The firm had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The company’s revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities analysts anticipate that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. Starbucks’s payout ratio is currently 142.53%.

Trending Headlines about 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

Starbucks Company 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.