Van ECK Associates Corp Reduces Position in Starbucks Corporation $SBUX

Key Points

• Van ECK Associates sharply reduced its Starbucks stake by 97.1% in the second quarter, selling 2.25 million shares and retaining 66,863 shares worth approximately $6.8 million. Institutional investors collectively own 72.29% of the company.
• Starbucks exceeded quarterly expectations with $0.85 EPS and $9.32 billion in revenue, though revenue declined 1.4% year over year. The company maintained FY2026 EPS guidance of $2.55–$2.65 and pays a quarterly dividend of $0.62.
• The stock trades near its 12-month high at $106.72, while analysts’ average rating remains “Hold” with a $110.30 price target. Improving sales and turnaround efforts are balanced by elevated valuation, product-safety concerns and intensifying competition.

Van ECK Associates Corp decreased its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 97.1% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 66,863 shares of the coffee company's stock after selling 2,253,230 shares during the quarter. Van ECK Associates Corp's holdings in Starbucks were worth $6,833,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Brighton Jones LLC grew its stake in Starbucks by 86.5% during the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock valued at $16,126,000 after purchasing an additional 81,952 shares during the last quarter. Schnieders Capital Management LLC. raised its stake in shares of Starbucks by 47.0% in the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after purchasing an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC acquired a new stake in shares of Starbucks during the second quarter worth about $288,000. Gamco Investors INC. ET AL lifted its holdings in shares of Starbucks by 92.8% during the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock worth $479,000 after purchasing an additional 2,515 shares during the period. Finally, NewEdge Advisors LLC boosted its position in Starbucks by 7.6% in the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock valued at $10,328,000 after buying an additional 7,978 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $106.72 on Thursday. The stock has a market capitalization of $121.66 billion, a price-to-earnings ratio of 61.33, a PEG ratio of 1.83 and a beta of 0.97. The firm's 50 day simple moving average is $105.38 and its 200-day simple moving average is $100.98. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results 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 net margin of 5.17% and a negative return on equity of 34.10%. The firm had revenue of $9.32 billion during the quarter, compared to analysts' expectations of $9.17 billion. During the same period in the previous year, the business posted $0.50 EPS. The business'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. Analysts anticipate that Starbucks Corporation will post 2.64 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were given a $0.62 dividend. The ex-dividend date was 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 142.53%.

Insider Activity

In other 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 sale, the chief executive officer directly owned 75,135 shares in the company, valued at $7,963,558.65. This trade represents a 2.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 6,687 shares of company stock worth $681,663. Corporate insiders own 0.03% of the company's stock.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Labor-related court victory reduces legal risk. A U.S. appeals court overturned a National Labor Relations Board ruling involving Starbucks’ restrictions on union-supportive shirts and pins at a Manhattan store. The decision supports the company’s dress-code policy and represents a setback for organized-labor efforts, potentially reducing compliance and litigation risk. Reuters article
• Positive Sentiment: Turnaround momentum is improving. Recent coverage points to accelerating sales, better execution and 7.9% global comparable-sales growth. Starbucks is also pursuing coffeehouse improvements and cost savings, while its $1.8 billion debt repayment should lower financing costs and strengthen balance-sheet flexibility. Motley Fool article Zacks article
• Positive Sentiment: New traffic initiatives could support near-term demand. Starbucks is using nostalgia-oriented marketing and seasonal offerings to encourage visits as it seeks to regain momentum after several difficult years. TheStreet article
• Neutral Sentiment: Valuation already reflects much of the recovery. Analysts cited improving comps, higher guidance, margin gains and debt reduction, but rated SBUX “Hold” because its elevated valuation leaves less room for execution misses and remains exposed to macroeconomic and consumer-spending risks. Seeking Alpha article
• Negative Sentiment: Product-safety concerns and intense competition remain overhangs. Starbucks is discontinuing a drink-blending powder after airborne particles reportedly caused coughing and illness complaints from baristas. Meanwhile, rapid expansion by Dutch Bros, Scooter’s and other drive-through coffee brands could pressure traffic and market share. Yahoo Finance article

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. TD Cowen restated a "buy" rating on shares of Starbucks in a research note on Tuesday, August 18th. Royal Bank Of Canada restated 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. BMO Capital Markets reaffirmed an "outperform" rating and issued a $130.00 price target on shares of Starbucks in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Starbucks in a research report on Monday, July 20th. Finally, Compass Point began coverage on Starbucks in a research note on Monday, August 3rd. They set a "buy" rating for the company. One 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, the stock currently has an average rating of "Hold" and an average price target 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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