Northwestern Mutual Wealth Management Co. Lowers Stake in Starbucks Corporation $SBUX

Northwestern Mutual Wealth Management Co. lessened its holdings in shares of Starbucks Corporation (NASDAQ:SBUX) by 4.4% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 122,919 shares of the coffee company’s stock after selling 5,715 shares during the quarter. Northwestern Mutual Wealth Management Co.’s holdings in Starbucks were worth $12,561,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently added to or reduced their stakes in SBUX. BlackRock Inc. purchased a new position in Starbucks in the 2nd quarter worth approximately $8,504,509,000. Bank of America Corp DE acquired a new position in shares of Starbucks in the 2nd quarter worth approximately $1,581,287,000. Norges Bank bought a new stake in Starbucks during the fourth quarter valued at $1,232,650,000. T. Rowe Price Investment Management Inc. raised its stake in Starbucks by 65.9% during 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 acquiring an additional 7,725,547 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Starbucks during the second quarter valued at approximately $779,790,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on SBUX. TD Cowen reaffirmed a “buy” rating on shares of Starbucks in a report on Tuesday, August 18th. Zacks Research downgraded Starbucks from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Sanford C. Bernstein lowered shares of Starbucks from an “outperform” rating to a “market perform” rating in a research note on Monday, August 3rd. Compass Point began coverage on shares of Starbucks in a research report on Monday, August 3rd. They issued a “buy” rating for the company. Finally, BNP Paribas Exane lifted their target price on shares of Starbucks from $87.00 to $92.00 and gave the company an “underperform” rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $110.30.

Key Starbucks News

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

Starbucks Price Performance

NASDAQ:SBUX opened at $106.72 on Thursday. The company has a fifty day moving average price of $105.38 and a 200 day moving average price of $100.98. The stock has a market cap of $121.66 billion, a P/E ratio of 61.33, a PEG ratio of 1.83 and a beta of 0.97. Starbucks Corporation has a one year low of $77.99 and a one year high of $110.51.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 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 firm had revenue of $9.32 billion during the quarter, compared to analysts’ expectations of $9.17 billion. During the same quarter in the prior year, the firm posted $0.50 EPS. The company’s revenue for the quarter was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, equities research analysts anticipate that Starbucks Corporation will post 2.64 EPS for the current year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, August 14th. Starbucks’s payout ratio is 142.53%.

Insiders Place Their Bets

In other news, CEO Brady Brewer sold 2,229 shares of the company’s stock in a transaction that occurred 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 approximately $7,963,558.65. This represents a 2.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,687 shares of company stock worth $681,663 over the last 90 days. 0.03% of the stock is currently owned by insiders.

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.