EP Wealth Advisors LLC Makes New Investment in Starbucks Corporation $SBUX

Key Points

• EP Wealth Advisors acquired 75,211 Starbucks shares worth approximately $7.7 million during the second quarter, while institutional investors and hedge funds collectively own 72.29% of the stock.
• Starbucks exceeded quarterly expectations with $0.85 EPS and $9.32 billion in revenue, though revenue declined 1.4% year over year. The company reaffirmed fiscal 2026 EPS guidance of $2.55–$2.65.
• Shares opened at $107.49, near their 52-week high, while analysts maintain a consensus “Hold” rating and an average price target of $110.30. Starbucks also declared a quarterly dividend of $0.62 per share, yielding about 2.3%.

EP Wealth Advisors LLC acquired a new stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 75,211 shares of the coffee company's stock, valued at approximately $7,686,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Rachor Investment Advisory Services LLC acquired a new position in shares of Starbucks during the fourth quarter worth about $25,000. Cornerstone Financial Management LLC bought a new stake in Starbucks in the 4th quarter valued at approximately $25,000. Phillip James Consulting Co. acquired a new position in Starbucks during the 4th quarter worth approximately $25,000. Meeder Asset Management Inc. bought a new position in shares of Starbucks during the 2nd quarter worth approximately $25,000. Finally, Entrust Financial LLC bought a new position in shares of Starbucks during the 4th quarter worth approximately $26,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Price Performance

SBUX stock opened at $107.49 on Tuesday. Starbucks Corporation has a one year low of $77.99 and a one year high of $110.51. The stock has a market cap of $122.54 billion, a price-to-earnings ratio of 61.78, a price-to-earnings-growth ratio of 1.85 and a beta of 0.97. The company has a fifty day moving average price of $104.57 and a two-hundred day moving average price of $100.53.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, topping the consensus estimate of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The business had revenue of $9.32 billion during the quarter, compared to the consensus estimate of $9.17 billion. During the same quarter in the previous year, the firm posted $0.50 EPS. 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. Research analysts anticipate that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.62 per share. 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 payout ratio is currently 142.53%.

Key Starbucks News

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 at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on 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 owned 75,135 shares in the company, valued at approximately $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 accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,687 shares of company stock valued at $681,663 over the last 90 days. 0.03% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several brokerages recently commented on SBUX. Morgan Stanley cut shares of Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. Royal Bank Of Canada reissued a "sector perform" rating and set a $115.00 price target (up from $110.00) on shares of Starbucks in a research report on Thursday, July 30th. Sanford C. Bernstein cut Starbucks from an "outperform" rating to a "market perform" rating in a report on Monday, August 3rd. BMO Capital Markets reaffirmed an "outperform" rating and issued a $130.00 target price on shares of Starbucks in a research report on Thursday, July 30th. Finally, TD Cowen reiterated a "buy" rating on shares of Starbucks in a report on Tuesday, August 18th. Nineteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $110.30.

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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