Compass Wealth Management LLC Acquires New Shares in Starbucks Corporation $SBUX

Key Points

• Compass Wealth Management acquired 86,114 Starbucks shares worth approximately $8.8 million, making SBUX its 13th-largest holding and representing about 1.7% of its portfolio. Institutional investors collectively own 72.29% of the company.
• Starbucks exceeded quarterly expectations, reporting $0.85 EPS versus the $0.66 consensus and $9.32 billion in revenue, though sales declined 1.4% year over year. Analysts’ consensus remains “Hold,” with a $110.30 target price.
• The stock trades near its 52-week high at $107.08 and carries a demanding valuation, including a P/E ratio above 60. Starbucks also declared a quarterly dividend of $0.62 per share, but its 142.53% payout ratio raises sustainability concerns.

Compass Wealth Management LLC acquired a new position in Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 86,114 shares of the coffee company's stock, valued at approximately $8,800,000. Starbucks accounts for about 1.7% of Compass Wealth Management LLC's portfolio, making the stock its 13th biggest holding.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Rachor Investment Advisory Services LLC purchased a new position in Starbucks during the 4th quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Starbucks in the 4th quarter worth approximately $25,000. Phillip James Consulting Co. purchased a new stake in shares of Starbucks in the 4th quarter worth approximately $25,000. Meeder Asset Management Inc. bought a new position in shares of Starbucks during the second quarter valued at approximately $25,000. Finally, Entrust Financial LLC bought a new position in shares of Starbucks during the fourth quarter valued at approximately $26,000. 72.29% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total transaction of $236,251.71. Following the transaction, the chief executive officer directly owned 75,135 shares of the company's stock, valued at $7,963,558.65. This represents a 2.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 6,687 shares of company stock worth $681,663. 0.03% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Evercore reissued an "outperform" rating on shares of Starbucks in a research note on Thursday, July 30th. Robert W. Baird set a $124.00 target price on Starbucks in a report on Thursday, July 30th. Jefferies Financial Group assumed coverage on Starbucks in a research report on Thursday, May 14th. They set a "buy" rating on the stock. BTIG Research reiterated a "buy" rating and issued a $115.00 price target on shares of Starbucks in a report on Friday, July 31st. Finally, Melius Research set a $110.00 price target on Starbucks in a research report on Monday, August 3rd. Nineteen equities 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 company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $110.30.

Starbucks Price Performance

NASDAQ:SBUX opened at $107.08 on Monday. The stock has a market capitalization of $122.07 billion, a price-to-earnings ratio of 61.54, a PEG 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. The firm has a 50 day moving average of $104.45 and a 200 day moving average of $100.43.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings results 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. The business had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The business's revenue for the quarter was down 1.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, analysts expect that Starbucks Corporation will post 2.64 EPS for the current year.

Starbucks Dividend Announcement

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

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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