Ceredex Value Advisors LLC Takes Position in Starbucks Corporation $SBUX

Key Points

• Ceredex Value Advisors initiated a Starbucks position by purchasing 197,215 shares valued at approximately $20.2 million. Institutional investors collectively own 72.29% of the company, with several major funds also increasing or establishing stakes.
• Starbucks exceeded quarterly expectations, reporting EPS of $0.85 versus a $0.66 consensus and revenue of $9.32 billion versus $9.17 billion expected. Management’s turnaround efforts, including improved traffic, margins and store execution, have supported stronger investor interest.
• Despite improving fundamentals, analysts maintain a consensus “Hold” rating, reflecting valuation and execution concerns. Shares trade near their 52-week high at a P/E ratio of 61.78, while consumer weakness, higher costs and planned Seattle headquarters layoffs remain risks.

Ceredex Value Advisors LLC bought a new position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 197,215 shares of the coffee company's stock, valued at approximately $20,153,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in SBUX. BlackRock Inc. acquired a new position in Starbucks in the 2nd quarter valued at about $8,504,509,000. Norges Bank acquired a new stake in Starbucks during the 4th quarter worth approximately $1,232,650,000. T. Rowe Price Investment Management Inc. grew its stake in shares of Starbucks by 65.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company's stock valued at $1,637,704,000 after purchasing an additional 7,725,547 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Starbucks in the 2nd quarter valued at approximately $779,790,000. Finally, Capital World Investors increased its holdings in shares of Starbucks by 9.0% in the fourth quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after purchasing an additional 7,007,268 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks’ coffee strategy is drawing renewed investor attention as management focuses on improving the customer experience, store performance and operational execution. Starbucks Coffee Strategy Draws Fresh Attention
• Positive Sentiment: The fall menu includes the return of a 23-year-old customer favorite along with nine new seasonal food and beverage items, providing a potential near-term traffic and sales catalyst. Starbucks Fall Menu 2026
• Positive Sentiment: The limited-time Unicorn Frappuccino reportedly produced Starbucks’ biggest sales weekend ever and lifted traffic 28.5% versus a typical Saturday, supporting the case that innovative promotions can attract customers. Starbucks Unicorn Frappuccino Sales
• Positive Sentiment: Analyst commentary highlights SBUX’s roughly 27% year-to-date advance, stronger traffic, recovering margins and raised guidance. Recent earnings also exceeded expectations, with quarterly EPS of $0.85 versus a $0.66 consensus and revenue of $9.32 billion. Starbucks Stock Gains 27 Percent Year to Date
• Neutral Sentiment: Starbucks has received a consensus analyst rating of “Hold,” suggesting that improving fundamentals are currently balanced against the stock’s already strong rally and execution risks. Starbucks Consensus Hold Rating
• Negative Sentiment: At a premium valuation, SBUX could experience greater volatility if consumer spending weakens or investors reduce expectations for the turnaround. Higher input costs and broader consumer uncertainty remain key risks. High-Flying Stocks With Warning Signs
• Negative Sentiment: Starbucks plans to eliminate more than 200 positions at its Seattle headquarters and shift some roles to Nashville. The restructuring may improve efficiency, but the layoffs could signal ongoing cost and organizational pressure. Starbucks Seattle Headquarters Layoffs

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total value of $236,251.71. Following the completion of the sale, the chief executive officer owned 75,135 shares in the company, valued at $7,963,558.65. This trade represents a 2.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety 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 Price Performance

Starbucks stock opened at $107.49 on Tuesday. The stock's 50 day moving average price is $104.57 and its 200 day moving average price is $100.53. Starbucks Corporation has a 1-year low of $77.99 and a 1-year high of $110.51. The company has a market cap of $122.54 billion, a PE ratio of 61.78, a price-to-earnings-growth ratio of 1.85 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $9.17 billion. During the same quarter in the prior year, the business posted $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, equities research analysts anticipate that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks's dividend payout ratio (DPR) is currently 142.53%.

Analysts Set New Price Targets

SBUX has been the subject of several analyst reports. BTIG Research restated a "buy" rating and set a $115.00 price target on shares of Starbucks in a research note on Friday, July 31st. BNP Paribas Exane boosted their price objective on shares of Starbucks from $87.00 to $92.00 and gave the company an "underperform" rating in a research note on Thursday, July 30th. Weiss Ratings restated a "hold (c)" rating on shares of Starbucks in a research report on Monday, July 20th. Zacks Research cut shares of Starbucks from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Finally, Wells Fargo & Company downgraded shares of Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. 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. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average 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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