Starbucks (NASDAQ:SBUX) Stock: Insider Brady Brewer Sells 588 Shares

Starbucks Corporation (NASDAQ:SBUX) CEO Brady Brewer sold 588 shares of Starbucks stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $100.00, for a total transaction of $58,800.00. Following the completion of the transaction, the chief executive officer directly owned 70,920 shares in the company, valued at $7,092,000. This represents a 0.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Brady Brewer also recently made the following trade(s):

• On Monday, October 5th, Brady Brewer sold 1,641 shares of Starbucks stock. The stock was sold at an average price of $94.76, for a total transaction of $155,501.16.
• On Friday, September 4th, Brady Brewer sold 2,229 shares of Starbucks stock. The stock was sold at an average price of $105.60, for a total transaction of $235,382.40.
• On Wednesday, August 5th, Brady Brewer sold 2,229 shares of Starbucks stock. The shares were sold at an average price of $105.99, for a total transaction of $236,251.71.

Starbucks Stock Performance

Shares of NASDAQ:SBUX opened at $100.80 on Friday. The stock has a market capitalization of $114.91 billion, a price-to-earnings ratio of 41.94, a PEG ratio of 1.47 and a beta of 0.98. Starbucks Corporation has a 1-year low of $77.99 and a 1-year high of $110.51. The company has a 50 day moving average price of $99.44 and a 200 day moving average price of $101.38.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The firm had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same quarter in the previous year, the business posted $0.50 earnings per share. The firm’s quarterly revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, sell-side analysts expect that Starbucks Corporation will post 2.65 EPS for the current fiscal year.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be issued a dividend of $0.63 per share. This is a positive change from Starbucks’s previous quarterly dividend of $0.62. This represents a $2.52 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, November 13th. Starbucks’s dividend payout ratio (DPR) is currently 142.53%.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is expected to report fiscal fourth-quarter results next week, with analysts anticipating double-digit year-over-year EPS growth. A beat or stronger-than-expected outlook could support the shares, particularly after the company’s previous quarter exceeded earnings and revenue estimates. What to Expect From Starbucks’ Next Earnings Report
• Positive Sentiment: Starbucks China plans to invest approximately 300 million yuan, or $45 million, in staffing and store upgrades. The spending could improve customer service and the store experience, potentially supporting sales and traffic over time. Starbucks China Invests in Store Experience
• Positive Sentiment: The company’s quarterly dividend recently increased to $0.63 per share, reinforcing Starbucks’ appeal to income-oriented investors. The next dividend is scheduled for November 27 for shareholders of record on November 13. Starbucks Dividend Schedule
• Neutral Sentiment: Starbucks China will require customers to make a purchase before using seating areas. The policy may increase seat turnover and store productivity, but it could also affect customer perception; the financial impact is not yet clear. Starbucks China Launches New Rules
• Neutral Sentiment: Reports indicate Starbucks has abandoned a potential Chipotle transaction. Avoiding a costly or distracting acquisition may benefit the turnaround, although investors lose a possible diversification catalyst. Starbucks Ditches Chipotle Deal
• Negative Sentiment: Mizuho lowered its Starbucks price target from $115 to $105 and maintained a neutral rating, signaling limited expected upside at current valuation levels. Wells Fargo has also reduced its target, while the shares trade at a demanding earnings multiple. Mizuho Starbucks Rating
• Negative Sentiment: Polen Capital trimmed its Starbucks position, suggesting that progress from the turnaround is increasingly reflected in the stock’s valuation and that future gains may require stronger fundamental improvement. Polen Capital Trims Starbucks
• Negative Sentiment: CEO Brady Brewer sold 588 shares for $58,800 under a pre-arranged Rule 10b5-1 plan. The transaction was small relative to his remaining holdings, limiting its significance, but insider selling can add modest investor caution. Starbucks CEO Stock Sale

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SBUX. Capstone Capital Management Ltd bought a new position in shares of Starbucks in the third quarter valued at $791,000. Range Financial Group LLC acquired a new position in Starbucks during the third quarter worth $1,086,000. 55 North Private Wealth LLC increased its holdings in Starbucks by 9.3% during the third quarter. 55 North Private Wealth LLC now owns 3,657 shares of the coffee company’s stock worth $344,000 after buying an additional 312 shares during the last quarter. Prime Capital Investment Advisors LLC raised its position in Starbucks by 28.6% during the third quarter. Prime Capital Investment Advisors LLC now owns 35,163 shares of the coffee company’s stock worth $3,304,000 after acquiring an additional 7,826 shares in the last quarter. Finally, James T. Borello RIA bought a new stake in Starbucks during the third quarter worth $127,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. Zacks Research cut Starbucks from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Citigroup reaffirmed a “neutral” rating and set a $104.00 price objective (down from $112.00) on shares of Starbucks in a research note on Tuesday. Weiss Ratings upgraded shares of Starbucks from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. Sanford C. Bernstein cut shares of Starbucks from an “outperform” rating to a “market perform” rating in a report on Monday, August 3rd. Finally, Piper Sandler lifted their target price on shares of Starbucks from $110.00 to $120.00 and gave the stock an “overweight” rating in a research report on Thursday, July 30th. Twenty-four equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, Starbucks has a consensus rating of “Moderate Buy” and an average price target of $110.14.

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.