Bill Ackman's Hedge Fund Invests $900 Million Starbucks (SBUX, $57.71 ) Shares
Bill Ackman is high on coffee: his hedge fund Pershing Square Capital has invested about $900 million in Starbucks.
Pershing now owns 15.2 million shares of the café chain. The news pushed Starbucks stock price up by +2.5% on Tuesday, thereby reflecting investor optimism about the hedge fund’s investment in the company.
In support of his investment decision, Ackman mentioned several factors, such as his belief that Starbucks could open more stores in the U.S, the coffee company’s high growth potential in China and the general positive outlook on the coffee industry. Plus, he also indicated that Starbucks’s relatively high wage and benefits for employees make it resilient against any possibility of a hike in the nation’s minimum wage. Ackman has also gone on to say that the company’s stock value could double over the next three years.
Starbucks joins the list of food/restaurant companies, such as Chipotle and Restaurant Brands International, that Pershing has stakes in.
SBUX's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for SBUX turned positive on July 08, 2025. Looking at past instances where SBUX's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 01, 2025. You may want to consider a long position or call options on SBUX as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 10-day moving average for SBUX crossed bullishly above the 50-day moving average on June 05, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 224 cases where SBUX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SBUX moved out of overbought territory on June 13, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 66 cases where SBUX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBUX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SBUX broke above its upper Bollinger Band on June 11, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (7.803). P/E Ratio (34.524) is within average values for comparable stocks, (41.866). Projected Growth (PEG Ratio) (2.510) is also within normal values, averaging (1.931). Dividend Yield (0.025) settles around the average of (0.049) among similar stocks. P/S Ratio (2.973) is also within normal values, averaging (8.702).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SBUX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
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General Information
a producer of coffee and tea
Industry Restaurants
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