Terra Alpha Hikes Starbucks Stake by 17.9%, Director Adds 11,700 Shares

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Terra Alpha Investments LLC boosted its Starbucks stake by 17.9% to 42,273 shares after buying 6,406 shares in Q3, representing 3.6% of its $3.576 million portfolio allocation. Additionally, director Jorgen Vig Knudstorp acquired 11,700 shares at $85 each, increasing his personal holding by 28.3%.

1. Quarterly Earnings Beat and Forward Guidance

Starbucks reported quarterly revenue of 9.92 billion dollars, exceeding consensus estimates by approximately 300 million, driven by a 5.5 percent year-over-year sales increase. Global same-store sales rose for the first time in eight quarters, led by an uptick in U.S. traffic. Net margin reached 3.63 percent, while earnings per share came in at $0.56, slightly below expectations. Management offered full-year guidance of $2.15 to $2.40 in EPS, compared with the street’s average forecast of $2.99, signaling confidence in margin expansion through targeted cost controls and menu innovation.

2. Institutional and Insider Activity Highlights

Terra Alpha Investments boosted its position by 17.9 percent, acquiring 6,406 additional shares to reach a total holding of 42,273 shares valued at $3.576 million. Other notable institutional moves include Cooper Haims Advisors adding 110 shares (3,749 total), Diligent Investors increasing by 117 shares (6,132 total), and Pioneer Trust Bank raising its stake by 125 shares (11,437 total). Director Jørgen Vig Knudstorp purchased 11,700 shares at an average cost of $85, bringing his total ownership to 53,096 shares—a 28.3 percent increase—underscoring insider confidence.

3. Analyst Consensus and Valuation Metrics

Among sell-side analysts, 19 maintain Buy ratings, seven hold, and two recommend Sell, resulting in a consensus of Moderate Buy and an average price target of $104.74. Starbucks trades at a forward P/E of 75.99 and a P/E/G ratio of 1.94, with a beta of 0.97. The company’s market capitalization stands at $104.8 billion. Dividend investors receive $0.62 per quarter, yielding 2.7 percent annually, though the current payout ratio sits at 204.96 percent, reflecting a temporary earnings lag relative to distributions.

Sources

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