BlackRock Inc. Invests $8.50 Billion in Starbucks Corporation $SBUX

BlackRock Inc. acquired a new position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 83,222,518 shares of the coffee company's stock, valued at approximately $8,504,509,000. BlackRock Inc. owned 7.30% of Starbucks as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Rachor Investment Advisory Services LLC purchased a new position in shares of Starbucks during the fourth quarter worth $25,000. Cornerstone Financial Management LLC purchased a new stake in Starbucks during the 4th quarter worth about $25,000. Phillip James Consulting Co. purchased a new stake in shares of Starbucks during the fourth quarter worth approximately $25,000. Entrust Financial LLC acquired a new stake in shares of Starbucks in the 4th quarter valued at $26,000. Finally, Tucker Asset Management LLC acquired a new stake in Starbucks in the fourth quarter valued at $27,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Insiders Place Their Bets

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction 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 transaction, the chief executive officer directly owned 75,135 shares of the company's stock, valued at approximately $7,963,558.65. The trade was a 2.88% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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. Company insiders own 0.03% of the company's stock.

Starbucks Stock Up 3.0%

SBUX opened at $107.08 on Friday. The business has a 50 day moving average price of $104.45 and a two-hundred day moving average price of $100.36. The company has a market cap of $122.07 billion, a PE ratio of 61.54, a P/E/G ratio of 1.85 and a beta of 0.97. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.19. The company had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The company's revenue was down 1.4% on a year-over-year basis. During the same period last year, the business posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, sell-side analysts expect that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a dividend of $0.62 per share. 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 dividend payout ratio (DPR) is currently 142.53%.

Key Headlines Impacting Starbucks

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.

Analyst Ratings Changes

A number of analysts have weighed in on SBUX shares. Weiss Ratings reissued a "hold (c)" rating on shares of Starbucks in a report on Monday, July 20th. Wells Fargo & Company cut Starbucks from an "overweight" rating to an "underweight" rating in a research report on Monday, August 3rd. Scotiabank lowered Starbucks from a "market perform" rating to an "underperform" rating in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $126.00 price objective on shares of Starbucks in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group downgraded Starbucks from a "neutral" rating to a "neutral" rating in a report on Thursday, May 14th. Nineteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $110.30.

Starbucks Profile

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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