Keep an eye on Starbucks (SBUX). After finding double bottom support at around $72, the stock is just starting to pivot higher. Helping, The Wall Street Journal just reported that activist investor Elliott Investment Management bought a significant stake in the stock.
While the exact position size wasn’t revealed, we do know that Elliott has been speaking with SUBX to push for changes to boost the stock price. All after Starbucks posted weak sales and profits thanks to a sharp decline in orders. It also cut its outlook for the rest of the year.
However, with Elliott Investment Management’s involvement, there’s hope for further upside. Also, while investors wait for a potential recovery in the stock, they can collect its dividend yield of 2.88%.