Great Lakes Advisors LLC Takes $3.65 Million Position in Starbucks Corporation $SBUX

Key Points

• Great Lakes Advisors acquired 35,723 Starbucks shares worth approximately $3.65 million in the second quarter. Institutional investors collectively own 72.29% of SBUX.
• Starbucks exceeded quarterly expectations with adjusted EPS of $0.85 versus a $0.66 consensus and revenue of $9.32 billion, while announcing a restructuring and cost-reduction effort. However, revenue declined 1.4% year over year.
• Analysts collectively rate the stock “Hold,” with an average price target of $110.30, while SBUX trades at a demanding P/E ratio of 61.54 and faces challenges in China and from its elevated valuation.

Great Lakes Advisors 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 35,723 shares of the coffee company's stock, valued at approximately $3,650,000.

A number of other institutional investors have also added to or reduced their stakes in SBUX. Vanguard Group Inc. boosted its stake in shares of Starbucks by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company's stock valued at $9,634,523,000 after purchasing an additional 971,773 shares in the last quarter. Capital World Investors increased its holdings in Starbucks by 9.0% during 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 buying an additional 7,007,268 shares during the period. BlackRock Inc. bought a new position in Starbucks in the second quarter worth approximately $8,504,509,000. State Street Corp lifted its holdings in Starbucks by 0.7% during the fourth quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock worth $4,031,053,000 after buying an additional 327,161 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Starbucks by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock worth $2,212,153,000 after buying an additional 225,168 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Key Stories 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

SBUX has been the topic of a number of recent research reports. Raymond James Financial downgraded Starbucks to an "outperform" rating in a research report on Monday, August 3rd. Sanford C. Bernstein lowered shares of Starbucks from an "outperform" rating to a "market perform" rating in a research report on Monday, August 3rd. Morgan Stanley cut shares of Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. BNP Paribas Exane lifted their price objective on shares of Starbucks from $87.00 to $92.00 and gave the stock an "underperform" rating in a research report on Thursday, July 30th. Finally, Scotiabank lowered shares of Starbucks from a "market perform" rating to an "underperform" rating in a research note on Thursday, May 14th. Nineteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $110.30.

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total transaction of $236,251.71. Following the completion of the transaction, the chief executive officer owned 75,135 shares of the company's stock, 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 SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,687 shares of company stock worth $681,663 over the last three months. Company insiders own 0.03% of the company's stock.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $107.08 on Monday. Starbucks Corporation has a 52 week low of $77.99 and a 52 week high of $110.51. The business's 50 day moving average price is $104.45 and its 200 day moving average price is $100.43. The firm has a market cap 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 posted its quarterly 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 net margin of 5.17% and a negative return on equity of 34.10%. The company had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same period last year, the firm posted $0.50 EPS. Starbucks's revenue for the quarter was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, research analysts expect that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Dividend Announcement

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 is Friday, August 14th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.3%. Starbucks's dividend payout ratio is presently 142.53%.

Starbucks Company 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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