Varma Mutual Pension Insurance Co Purchases New Position in Starbucks Corporation $SBUX

Key Points

• Varma Mutual Pension Insurance Co. acquired 189,942 Starbucks shares worth approximately $19.4 million in the second quarter. Institutional investors collectively own 72.29% of SBUX.
• Starbucks exceeded quarterly expectations with EPS of $0.85 versus $0.66 forecast and revenue of $9.32 billion versus $9.17 billion, though revenue declined 1.4% year over year.
• Analysts’ consensus rating remains Hold with a $110.30 price target, while shares trade near $107.49 at a high P/E of 61.78; the company also announced a quarterly dividend of $0.62 per share.

Varma Mutual Pension Insurance Co acquired a new position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 189,942 shares of the coffee company's stock, valued at approximately $19,410,000.

Several other institutional investors and hedge funds have also recently modified their holdings of SBUX. Rachor Investment Advisory Services LLC bought a new position in shares of Starbucks in the fourth quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in Starbucks in the 4th quarter valued at $25,000. Phillip James Consulting Co. purchased a new stake in Starbucks in the 4th quarter valued at $25,000. Meeder Asset Management Inc. bought a new position in Starbucks during the 2nd quarter valued at $25,000. Finally, Entrust Financial LLC purchased a new position in Starbucks during the 4th quarter worth $26,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total value 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. The trade was a 2.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,687 shares of company stock valued at $681,663 in the last 90 days. Insiders own 0.03% of the company's stock.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks’ coffee strategy is drawing renewed investor attention as management focuses on improving the customer experience, store performance and operational execution. Starbucks Coffee Strategy Draws Fresh Attention
• Positive Sentiment: The fall menu includes the return of a 23-year-old customer favorite along with nine new seasonal food and beverage items, providing a potential near-term traffic and sales catalyst. Starbucks Fall Menu 2026
• Positive Sentiment: The limited-time Unicorn Frappuccino reportedly produced Starbucks’ biggest sales weekend ever and lifted traffic 28.5% versus a typical Saturday, supporting the case that innovative promotions can attract customers. Starbucks Unicorn Frappuccino Sales
• Positive Sentiment: Analyst commentary highlights SBUX’s roughly 27% year-to-date advance, stronger traffic, recovering margins and raised guidance. Recent earnings also exceeded expectations, with quarterly EPS of $0.85 versus a $0.66 consensus and revenue of $9.32 billion. Starbucks Stock Gains 27 Percent Year to Date
• Neutral Sentiment: Starbucks has received a consensus analyst rating of “Hold,” suggesting that improving fundamentals are currently balanced against the stock’s already strong rally and execution risks. Starbucks Consensus Hold Rating
• Negative Sentiment: At a premium valuation, SBUX could experience greater volatility if consumer spending weakens or investors reduce expectations for the turnaround. Higher input costs and broader consumer uncertainty remain key risks. High-Flying Stocks With Warning Signs
• Negative Sentiment: Starbucks plans to eliminate more than 200 positions at its Seattle headquarters and shift some roles to Nashville. The restructuring may improve efficiency, but the layoffs could signal ongoing cost and organizational pressure. Starbucks Seattle Headquarters Layoffs

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on SBUX shares. Morgan Stanley downgraded shares of Starbucks from an "overweight" rating to an "underweight" rating in a research report on Monday, August 3rd. Piper Sandler restated an "overweight" rating and issued a $110.00 target price on shares of Starbucks in a research note on Wednesday, April 29th. Melius Research set a $110.00 target price on Starbucks in a report on Monday, August 3rd. UBS Group lifted their price target on Starbucks from $105.00 to $112.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Finally, BTIG Research reissued a "buy" rating and issued a $115.00 price objective on shares of Starbucks in a research report on Friday, July 31st. Nineteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $110.30.

Starbucks Stock Up 0.4%

Starbucks stock opened at $107.49 on Tuesday. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $110.51. The firm has a 50 day moving average price of $104.57 and a 200-day moving average price of $100.53. The company has a market capitalization of $122.54 billion, a P/E ratio of 61.78, a P/E/G ratio of 1.85 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.19. The company had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. Starbucks's quarterly revenue was down 1.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Equities analysts expect that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks's dividend payout ratio (DPR) is currently 142.53%.

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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