Is Starbucks’ Margin Edge a Victory For These Top Institutional Shareholders?

OptionMonster.com’s Jon Najarian says that arabica coffee bean prices have fallen 50 percent, but the price per cup at the local Starbucks (NASDAQ:SBUX) have not dropped, giving it a margin edge due to to the same sourcing program that allowed it to raises prices along with the competition in 2011. When bean prices drop, Starbucks can take advantage of the lower price in the marketplace and retain the majority of the price hike in its stores. The company has shown good performance in both rising and falling markets, notes Najarian. ”I think Starbucks is probably a screaming ‘buy’ because of this big correction you’ve seen in this major input,” he stated.

These institutional firms indicated owning shares of Starbucks in Q4 2012. They reported owning a total of 570.543 million shares on 12/31/2012. The shares closed at $53.43 on 12/31/2012.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

Here are the ten largest positions in Starbucks at the end of December 31, 2012.

FMR LLC held 35,593,475 shares on 12/31/2012 worth $1,908,878,102. This brought the portfolio total to 0.34 percent.

Price T Rowe Associates Inc /MD/ held 34,345,408 shares on 12/31/2012 worth $1,841,944,268. This brought the portfolio total to 0.54 percent.

Vanguard Group Inc held 33,027,380 shares on 12/31/2012 worth $1,771,258,425. This brought the portfolio total to 0.22 percent.

State Street Corp held 28,566,744 shares on 12/31/2012 worth $1,532,034,511. This brought the portfolio total to 0.22 percent.

Blackrock Institutional Trust Company N.A. held 19,898,880 shares on 12/31/2012 worth $1,067,176,956. This brought the portfolio total to 0.25 percent.

Capital World Investors held 18,150,000 shares on 12/31/2012 worth $973,384,519. This brought the portfolio total to 0.36 percent.

Northern Trust Corp held 12,738,762 shares on 12/31/2012 worth $683,179,820. This brought the portfolio total to 0.28 percent.

Sands Capital Management LLC held 10,787,280 shares on 12/31/2012 worth $578,521,838. This brought the portfolio total to 2.32 percent.

Winslow Capital Management LLC held 10,729,471 shares on 12/31/2012 worth $575,421,541. This brought the portfolio total to 1.84 percent.

Bank of New York Mellon Corp held 9,639,589 shares on 12/31/2012 worth $516,971,168. This brought the portfolio total to 0.18 percent.

Knowing which stocks have institutional support will help improve your investing skills, and teach you how to ride the waves of strong moves. In fact, “S = Support is Provided By Institutional Investors & Company Insiders” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

More Articles About:   ,  

More from The Cheat Sheet