Simplicity Wealth LLC Invests $1.19 Million in Starbucks Corporation $SBUX

Key Points

• Simplicity Wealth LLC established a new Starbucks position in the second quarter, purchasing 11,631 shares valued at approximately $1.19 million. Institutional investors collectively own 72.29% of the company.
• Starbucks reported quarterly earnings of $0.85 per share, beating the $0.66 analyst consensus, while revenue reached $9.32 billion. The company is pursuing a roughly $2 billion cost-reduction plan, including corporate job cuts, to support its turnaround.
• SBUX trades near its 52-week high at a demanding valuation, with a P/E ratio above 60; analysts maintain a consensus “Hold” rating and an average price target of $110.30. Ongoing challenges in China and the company’s 142.5% dividend payout ratio remain notable risks.

Simplicity Wealth LLC bought a new position in Starbucks Corporation (NASDAQ:SBUX - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 11,631 shares of the coffee company's stock, valued at approximately $1,189,000.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Norges Bank purchased a new stake in Starbucks in the fourth quarter worth about $1,232,650,000. T. Rowe Price Investment Management Inc. raised its stake in shares of Starbucks by 65.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company's stock worth $1,637,704,000 after buying an additional 7,725,547 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Starbucks during the 2nd quarter valued at about $779,790,000. Capital World Investors grew its stake in shares of Starbucks by 9.0% during the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after acquiring an additional 7,007,268 shares during the period. Finally, Corient Private Wealth LLC grew its stake in shares of Starbucks by 146.6% during the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock valued at $553,201,000 after acquiring an additional 3,596,014 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

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.

Starbucks Price Performance

Shares of SBUX opened at $107.08 on Friday. The stock has a market capitalization of $122.07 billion, a price-to-earnings ratio of 61.54, a price-to-earnings-growth ratio of 1.79 and a beta of 0.97. Starbucks Corporation has a 1 year low of $77.99 and a 1 year high of $110.51. The business's 50 day simple moving average is $104.45 and its 200-day simple moving average is $100.36.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted 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. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The firm had revenue of $9.32 billion during the quarter, compared to the consensus estimate of $9.17 billion. During the same period in the prior year, the company earned $0.50 EPS. The company's quarterly 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. On average, sell-side analysts expect that Starbucks Corporation will post 2.64 earnings per share for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders 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 annualized dividend and a yield of 2.3%. Starbucks's dividend payout ratio (DPR) is 142.53%.

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total transaction of $236,251.71. Following the sale, the chief executive officer directly owned 75,135 shares in the company, valued at approximately $7,963,558.65. This represents a 2.88% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 6,687 shares of company stock valued at $681,663. Company insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on SBUX. Compass Point started coverage on shares of Starbucks in a research note on Monday, August 3rd. They set a "buy" rating on the stock. Piper Sandler reiterated an "overweight" rating and issued a $110.00 price target on shares of Starbucks in a research report on Wednesday, April 29th. Stephens started coverage on shares of Starbucks in a research note on Thursday, May 14th. They issued an "overweight" rating for the company. BNP Paribas Exane increased their price objective on shares of Starbucks from $87.00 to $92.00 and gave the stock an "underperform" rating in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group downgraded shares of Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Nineteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $110.30.

Starbucks 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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