Advisors Capital Management LLC Makes New $27.46 Million Investment in Starbucks Corporation $SBUX

Key Points

• Advisors Capital Management initiated a $27.46 million Starbucks position by purchasing 268,686 shares in the second quarter. Institutional investors collectively own 72.29% of the company.
• Starbucks exceeded quarterly expectations, reporting $0.85 in EPS versus the $0.66 consensus and $9.32 billion in revenue, though sales declined 1.4% year over year. The company reaffirmed fiscal 2026 EPS guidance of $2.55–$2.65.
• Shares trade near their 52-week high at $107.08, with a demanding P/E ratio above 60; analysts maintain a consensus “Hold” rating and an average price target of $110.30. Starbucks also declared a $0.62 quarterly dividend, yielding approximately 2.3%.

Advisors Capital Management LLC purchased a new stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 268,686 shares of the coffee company's stock, valued at approximately $27,457,000.

A number of other hedge funds also recently made changes to their positions in the business. Rachor Investment Advisory Services LLC bought a new position in Starbucks in the 4th quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in Starbucks during the 4th quarter valued at $25,000. Phillip James Consulting Co. bought a new stake in Starbucks during the 4th quarter valued at $25,000. Meeder Asset Management Inc. acquired a new position in Starbucks during the 2nd quarter worth $25,000. Finally, Entrust Financial LLC acquired a new position in Starbucks during the 4th quarter worth $26,000. Institutional investors own 72.29% of the company's stock.

Starbucks Price Performance

Shares of SBUX stock opened at $107.08 on Monday. The stock has a 50-day simple moving average of $104.45 and a 200 day simple moving average of $100.43. Starbucks Corporation has a fifty-two week low of $77.99 and a fifty-two week high of $110.51. The stock has a market capitalization of $122.07 billion, a P/E ratio of 61.54, a P/E/G ratio of 1.85 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.66 by $0.19. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The firm had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same period in the previous year, the company earned $0.50 earnings per share. Starbucks's revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, sell-side analysts anticipate that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. Starbucks's payout ratio is currently 142.53%.

Wall Street Analysts Forecast Growth

SBUX has been the subject of several recent analyst reports. Evercore reissued an "outperform" rating on shares of Starbucks in a report on Thursday, July 30th. Piper Sandler restated an "overweight" rating and set a $110.00 price objective on shares of Starbucks in a research note on Wednesday, April 29th. UBS Group upped their price objective on shares of Starbucks from $105.00 to $112.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Raymond James Financial lowered shares of Starbucks to an "outperform" rating in a research report on Monday, August 3rd. Finally, DA Davidson raised their target price on shares of Starbucks from $102.00 to $110.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Nineteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $110.30.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total value of $236,251.71. Following the sale, the chief executive officer directly owned 75,135 shares in the company, valued at $7,963,558.65. The trade was a 2.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 6,687 shares of company stock valued at $681,663. 0.03% of the stock is owned by insiders.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is eliminating more than 200 corporate positions as part of a broader restructuring and approximately $2 billion cost-reduction effort. Lower overhead could support profitability if the company maintains service levels and directs more resources toward its stores. The reductions do not involve cafe closures. Starbucks trims corporate ranks as coffeehouse investments deliver
• Positive Sentiment: Recent market commentary highlights Starbucks’ roughly 25% 2026 gain and suggests investors are rewarding its operational reset and investments in the cafe experience. The rally follows the company’s latest quarterly earnings beat, with adjusted EPS of $0.85 versus a $0.66 consensus estimate and revenue above expectations.
• Neutral Sentiment: The restructuring is relocating some corporate operations to a new, approximately $100 million Nashville office. Around 120 Seattle employees reportedly declined the move, while another 104 roles in store design and construction are being eliminated. Management characterizes the actions as part of the restructuring winding down, but the savings and impact on execution remain to be demonstrated. Starbucks cuts another 224 Seattle jobs
• Negative Sentiment: Starbucks continues to face challenges in China, where domestic competitors, shifting consumer preferences and geopolitical tensions are eroding the position of major U.S. brands. China weakness could limit international growth and pressure comparable sales. Why some of America’s biggest brands are losing ground in China
• Negative Sentiment: The stock’s strong performance has also produced a demanding valuation, with the supplied data showing a P/E ratio above 60. Investors may require sustained earnings growth from the turnaround to justify the premium, leaving SBUX vulnerable to disappointment.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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