Legal & General Group Plc Invests $649.62 Million in Starbucks Corporation $SBUX

Legal & General Group Plc purchased a new stake in Starbucks Corporation (NASDAQ:SBUX) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 6,357,006 shares of the coffee company’s stock, valued at approximately $649,622,000.

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

Starbucks Trading Down 1.6%

SBUX opened at $105.76 on Wednesday. The stock has a market capitalization of $120.57 billion, a P/E ratio of 60.78, a P/E/G ratio of 1.86 and a beta of 0.97. Starbucks Corporation has a 12 month low of $77.99 and a 12 month high of $110.51. The firm’s fifty day simple moving average is $104.65 and its 200 day simple moving average is $100.59.

Starbucks (NASDAQ:SBUX) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, topping 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 analysts’ expectations of $9.17 billion. During the same quarter in the prior year, the company earned $0.50 EPS. The company’s revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities research analysts predict that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a dividend of $0.62 per share. The ex-dividend date is 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 (DPR) is presently 142.53%.

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks 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 owned 75,135 shares of the company’s stock, valued at approximately $7,963,558.65. This trade 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 this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,687 shares of company stock worth $681,663 in the last ninety days. 0.03% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

SBUX has been the subject of a number of recent analyst reports. Compass Point began coverage on shares of Starbucks in a research report on Monday, August 3rd. They issued a “buy” rating for the company. BTIG Research reiterated a “buy” rating and set a $115.00 target price on shares of Starbucks in a report on Friday, July 31st. Wedbush initiated coverage on Starbucks in a report on Thursday, May 14th. They issued an “outperform” rating for the company. UBS Group raised their price target on Starbucks from $105.00 to $112.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $126.00 price objective on shares of Starbucks in a report on Thursday, July 30th. Nineteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $110.30.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Seasonal promotions are supporting the turnaround. Starbucks launched its fall menu and Pumpkin Spice Latte season, while the limited-time Unicorn Frappuccino reportedly generated the company’s highest sales weekend on record and lifted traffic 28.5% above a typical Saturday. New offerings, including the Blueberry Matcha Daily Fiber Bar, are also intended to drive visits and strengthen the “Back to Starbucks” strategy. Starbucks Unicorn Frappuccino drives biggest sales weekend ever
• Positive Sentiment: Analyst sentiment remains constructive. Baird initiated coverage with an Outperform rating and a $124 price target, implying additional upside based on expectations for improved traffic, margin recovery and continued execution of the turnaround. Starbucks has also reported better-than-expected recent earnings and maintained fiscal 2026 EPS guidance of $2.55–$2.65. Baird sees upside for Starbucks
• Neutral Sentiment: Corporate restructuring continues. Starbucks plans to eliminate more than 200 Seattle-area corporate positions and shift some roles to Nashville. The cuts could reduce costs and streamline operations, but they also highlight ongoing execution challenges and may create transition or morale risks. Starbucks is cutting more than 200 jobs
• Negative Sentiment: Labor conflict is the main near-term overhang. Starbucks Workers United is urging more than 12,000 unionized baristas and customers to boycott the chain during the Pumpkin Spice Latte launch until management reaches a contract agreement. The financial impact depends on participation, but a sustained boycott could undermine the traffic gains investors are watching and add reputational and labor costs. Starbucks union calls for boycott

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.