QV Investors Inc. Cuts Position in Starbucks Corporation $SBUX

Key Points

• QV Investors cut its Starbucks stake by 36.9% in the second quarter, selling 60,960 shares and retaining 104,060 shares valued at approximately $10.6 million. Institutional investors collectively own 72.29% of the company.
• Starbucks exceeded quarterly expectations with adjusted EPS of $0.85 versus the $0.66 consensus and revenue of $9.32 billion, although revenue declined 1.4% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $109.92.
• The stock opened at $108.55 near its 52-week high, while CEO Brady Brewer and other insiders sold shares during the quarter. Starbucks also declared a quarterly dividend of $0.62, equivalent to a 2.3% yield, though its payout ratio remains elevated at 142.53%.

QV Investors Inc. decreased its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 36.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 104,060 shares of the coffee company's stock after selling 60,960 shares during the period. QV Investors Inc.'s holdings in Starbucks were worth $10,634,000 as of its most recent SEC filing.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Rachor Investment Advisory Services LLC purchased a new position in Starbucks in the fourth quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks during the 4th quarter valued at approximately $25,000. Phillip James Consulting Co. purchased a new stake in shares of Starbucks during the 4th quarter worth approximately $25,000. Entrust Financial LLC purchased a new stake in shares of Starbucks during the 4th quarter worth approximately $26,000. Finally, Tucker Asset Management LLC purchased a new stake in shares of Starbucks during the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks 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 completion of the sale, 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,687 shares of company stock worth $681,663 over the last quarter. 0.03% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on SBUX shares. Stifel Nicolaus set a $117.00 price objective on Starbucks and gave the company a "buy" rating in a research note on Wednesday, May 6th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $115.00 target price (up from $110.00) on shares of Starbucks in a research report on Thursday, July 30th. BNP Paribas Exane upped their target price on Starbucks from $87.00 to $92.00 and gave the company an "underperform" rating in a report on Thursday, July 30th. Raymond James Financial lowered Starbucks to an "outperform" rating in a report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $126.00 price target on shares of Starbucks in a research report on Thursday, July 30th. 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 stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $109.92.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Strong U.S. performance supports the rally. Starbucks reportedly delivered 8% U.S. comparable-store sales growth, while quarterly earnings and revenue exceeded analyst expectations. Analysts subsequently raised price targets as high as $130, reinforcing expectations that the company’s turnaround and operating initiatives are gaining traction. Starbucks (SBUX) Stock Reaches 52-Week Peak Following Strong Q3 Performance
• Positive Sentiment: Options activity signals bullish positioning. Investors purchased 40,915 SBUX call options, 59% above the average daily call volume of 25,712. Although options activity can include hedging, the elevated call buying suggests increased speculative interest in further gains.
• Positive Sentiment: Technical momentum remains favorable. Starbucks reached fresh 52-week highs, and chart analysts say the stock is approaching the upper end of a multiyear trading range, potentially creating room for a breakout if momentum continues. Starbucks is close to the top of its multiyear range
• Neutral Sentiment: Energy drinks offer a potential growth avenue. Starbucks is among restaurant chains expanding into energy drinks, which could broaden its beverage lineup and attract new occasions, but the financial impact is not yet clear. Why fast food chains are going all in on energy drinks
• Negative Sentiment: Starbucks Korea reported its first quarterly loss in 27 years. A marketing controversy led to a boycott, political criticism and a police raid, highlighting reputational and execution risks in an important international market. Starbucks Korea Suffers First Loss in 27 Years on PR Debacle

Starbucks Price Performance

Shares of SBUX opened at $108.55 on Friday. The firm has a 50 day simple moving average of $103.53 and a 200-day simple moving average of $99.91. Starbucks Corporation has a 1-year low of $77.99 and a 1-year high of $110.51. The stock has a market cap of $123.75 billion, a price-to-earnings ratio of 62.39, a price-to-earnings-growth ratio of 1.87 and a beta of 0.97.

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, beating analysts' consensus estimates of $0.66 by $0.19. The firm had revenue of $9.32 billion for the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.Starbucks's quarterly revenue was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities analysts expect that Starbucks Corporation will post 2.64 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

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

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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