Public Employees Retirement System of Ohio Invests $44.33 Million in Starbucks Corporation $SBUX

Key Points

• Ohio’s public employees’ pension fund acquired 433,820 Starbucks shares in the second quarter, valued at approximately $44.3 million. Institutional investors collectively own 72.29% of the company.
• Starbucks exceeded quarterly expectations with adjusted earnings of $0.85 per share versus a $0.66 consensus estimate and revenue of $9.32 billion, although revenue declined 1.4% year over year.
• The company declared a quarterly dividend of $0.62 per share, equivalent to a 2.3% yield, while its stock traded near its 52-week high and analysts maintained a consensus “Hold” rating with an average price target of $110.30.

Public Employees Retirement System of Ohio acquired a new stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund acquired 433,820 shares of the coffee company's stock, valued at approximately $44,332,000.

Several other hedge funds also recently bought and sold shares of the company. Brighton Jones LLC lifted its holdings in Starbucks by 86.5% in the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after purchasing an additional 81,952 shares in the last quarter. Schnieders Capital Management LLC. boosted its position in shares of Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after acquiring an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC purchased a new position in Starbucks during the second quarter valued at $288,000. Gamco Investors INC. ET AL increased its holdings in Starbucks by 92.8% in the 2nd quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock valued at $479,000 after acquiring an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC increased its holdings in Starbucks by 7.6% in the 2nd quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock valued at $10,328,000 after acquiring an additional 7,978 shares during the last quarter. Institutional investors own 72.29% of the company's stock.

Insider Buying and Selling

In related news, CEO Brady Brewer sold 2,229 shares of the firm'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 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 transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock valued at $681,663 in the last quarter. Insiders own 0.03% of the company's stock.

Starbucks Stock Down 1.1%

SBUX opened at $107.26 on Friday. The firm has a market cap of $122.28 billion, a P/E ratio of 61.64, a P/E/G ratio of 1.87 and a beta of 0.97. The business has a fifty day simple moving average of $104.95 and a 200-day simple moving average of $100.73. 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 quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, beating 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 business had revenue of $9.32 billion for the quarter, compared to analysts' expectations of $9.17 billion. During the same period last year, the firm earned $0.50 earnings per share. The company'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. Sell-side analysts expect that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a dividend of $0.62 per share. 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 (DPR) is 142.53%.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Analyst upgrade: Robert W. Baird upgraded Starbucks to “strong buy,” signaling confidence in the company’s turnaround prospects and potentially supporting investor sentiment. Zacks report
• Positive Sentiment: Fall menu and marketing: Starbucks launched its seasonal menu, including the Pumpkin Spice Latte, supported by advertising featuring Martha Stewart. The promotion could drive customer traffic and strengthen seasonal sales. Starbucks launches fall menu Pumpkin Spice Latte advertising
• Positive Sentiment: Property transactions: A corporate Starbucks drive-thru in Jacksonville, Florida, was included in a $6.9 million pair of net-lease deals. While not a material financial event for Starbucks, the transaction highlights ongoing investor demand for Starbucks-occupied properties. Starbucks net-lease transaction
• Neutral Sentiment: Valuation and operating backdrop: Starbucks recently exceeded quarterly earnings and revenue expectations, but revenue declined year over year. With a relatively high earnings multiple, investors may require sustained improvement from the company’s turnaround plan.
• Negative Sentiment: Union-led boycott: Starbucks Workers United called for a boycott tied to stalled contract negotiations, seeking $17 hourly wages and a contract covering more than 12,000 baristas. The action presents near-term traffic, sales and reputational risks. Starbucks union boycott
• Negative Sentiment: Consumer caution: Reports questioning whether consumers are rethinking coffee purchases raise concerns about traffic and demand, particularly if customers trade down or reduce premium beverage spending. Consumer caution report
• Negative Sentiment: Turnaround costs: Additional job cuts as Starbucks expands its roughly $2 billion overhaul may pressure near-term morale and execution, even though management expects restructuring to improve efficiency over time. Starbucks job cuts and turnaround

Analyst Upgrades and Downgrades

SBUX has been the topic of a number of recent research reports. Evercore reaffirmed an "outperform" rating on shares of Starbucks in a research note on Thursday, July 30th. The Goldman Sachs Group lowered Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Stifel Nicolaus set a $117.00 price target on Starbucks and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Melius Research set a $110.00 price objective on shares of Starbucks in a report on Monday, August 3rd. Finally, Jefferies Financial Group started coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued a "buy" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source