Pershing Square Takes Tactical Position in Starbucks
While exact motives remain unclear, the $8.3 billion hedge fund Pershing Square has recently established a $900 million long position in Starbucks (SBUX), the fund’s helmsman Bill Ackman announced today. The stock gained about 3 percent following the news.
Ackman is famous for his outspokenness and activist investments. His $1 billion short on Herbalife (HLF), which he believed was a pyramid scheme masquerading as a direct sales company, was the subject of a feature-length documentary called "Betting On Zero."
Not all of his investments are made for activist reasons, and the recent stock acquisition is generally seen as being motivated by profit potential. Not long ago, the fund was hit with a series of damaging blows, which included significant losses in Valeant Pharmaceuticals (VRX) and the overly zealous bet on Herbalife, losing half of its former value by early 2018. The losing streak cost the hedge fund a swath of investors and 1/4 of its staff. Ackman assured his clients that he would do all that he could to rebuild the fund, not by simply recruiting new investors, as many hedge funds do, but through smart investing.
Ackman had foreshadowed today's announcement weeks ago, when he disclosed that his fund was repositioning about 10% of their capital. This year he has since also revealed new stakes in Nike (NKE), United Technologies (UTX), and Lowes (LOW).
The fund holds large positions in other food service companies, including Chipotle (CMG), Restaurant Brands International (QSR), and Mondelez International (MDLZ). Other significant holdings include Target (TGT), and Automatic Data Processing (ADP). 2018 has been a good year for Pershing Square thus far, both for the private hedge fund and its publicly traded counterpart.
SBUX's RSI Indicator climbs out of oversold territory
The RSI Indicator for SBUX moved out of oversold territory on June 09, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In of the 29 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 11, 2026. You may want to consider a long position or call options on SBUX as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SBUX just turned positive on June 12, 2026. Looking at past instances where SBUX's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
SBUX moved above its 50-day moving average on June 23, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SBUX crossed bullishly above the 50-day moving average on June 24, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 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 187 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 Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 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 .
Fundamental Analysis (Ratings)
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 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 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 (5.771). P/E Ratio (79.290) is within average values for comparable stocks, (39.695). Projected Growth (PEG Ratio) (1.382) is also within normal values, averaging (1.727). Dividend Yield (0.024) settles around the average of (0.027) among similar stocks. P/S Ratio (3.082) is also within normal values, averaging (1.912).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 that the returns do not compensate for the risks. SBUX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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General Information
a producer of coffee and tea
Industry Restaurants
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