California State Teachers Retirement System Reduces Stock Position in Starbucks Corporation $SBUX

California State Teachers Retirement System cut its stake in Starbucks Corporation (NASDAQ:SBUX) by 2.1% in the first quarter, HoldingsChannel.com reports. The fund owned 1,756,064 shares of the coffee company’s stock after selling 37,943 shares during the period. California State Teachers Retirement System’s holdings in Starbucks were worth $157,326,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Rachor Investment Advisory Services LLC bought a new stake in Starbucks in the 4th quarter worth approximately $25,000. Phillip James Consulting Co. purchased a new position in shares of Starbucks in the 4th quarter worth $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Starbucks in the fourth quarter worth $25,000. Entrust Financial LLC purchased a new stake in Starbucks during the fourth quarter valued at $26,000. Finally, Financial Freedom LLC lifted its holdings in Starbucks by 296.2% in the first quarter. Financial Freedom LLC now owns 313 shares of the coffee company’s stock valued at $28,000 after acquiring an additional 234 shares during the period. Institutional investors own 72.29% of the company’s stock.

Insider Buying and Selling at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the completion of the transaction, the chief executive officer owned 77,364 shares in the company, valued at $8,045,856. This trade represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock valued at $679,033 over the last ninety days. Company insiders own 0.03% of the company’s stock.

Starbucks Trading Down 0.5%

NASDAQ:SBUX opened at $103.10 on Wednesday. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $109.23. The stock has a 50-day moving average price of $102.20 and a 200 day moving average price of $98.81. The stock has a market capitalization of $117.50 billion, a P/E ratio of 78.11, a P/E/G ratio of 2.06 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.44 by $0.06. The firm had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The company’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.41 earnings per share. On average, research analysts predict that Starbucks Corporation will post 2.41 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, August 14th. Starbucks’s dividend payout ratio is currently 187.88%.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Analysts expect earnings per share of approximately $0.65, representing improvement from the year-ago period. Evidence that the turnaround is improving traffic, customer experience, or store execution could support the stock. Starbucks Q3 earnings preview
• Positive Sentiment: Recent commentary says the “Back to Starbucks” strategy is showing signs of resonating with customers, while the company’s combination of mobile ordering, drive-through service, and in-store ordering may be strengthening the customer proposition. Starbucks dividend and turnaround
• Neutral Sentiment: The options market is pricing in an approximately 5.51% post-earnings move, signaling elevated volatility but not its direction. Investors should expect a potentially significant reaction to the earnings release and guidance. Starbucks options-implied earnings move
• Negative Sentiment: Wall Street expects third-quarter revenue of roughly $9.12 billion, down about 3.6% year over year. The combination of declining sales and a sharply higher valuation raises the risk of disappointment if comparable-store sales or the outlook fall short. Starbucks stock ahead of Q3 earnings
• Negative Sentiment: Investors are also questioning whether Starbucks can maintain its dividend while funding the turnaround. Thin dividend coverage and continued weak growth could limit upside despite generally constructive analyst opinions. Starbucks dividend coverage
• Negative Sentiment: Starbucks reportedly scrapped an AI-powered inventory-counting tool developed with NomadGo. The decision is unlikely to be a major earnings driver, but it raises questions about execution and the pace of technology adoption. Starbucks AI inventory tool report

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on SBUX shares. Jefferies Financial Group initiated coverage on Starbucks in a research note on Thursday, May 14th. They set a “buy” rating for the company. Robert W. Baird increased their price objective on shares of Starbucks from $112.00 to $117.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Starbucks in a report on Wednesday, April 29th. JPMorgan Chase & Co. boosted their target price on shares of Starbucks from $95.00 to $100.00 and gave the company an “overweight” rating in a research report on Friday, April 24th. Finally, Wedbush started coverage on shares of Starbucks in a report on Thursday, May 14th. They set an “outperform” rating for the company. Nineteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $109.42.

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.