Brokerages Set Starbucks Corporation (NASDAQ:SBUX) Price Target at $107.48

Shares of Starbucks Corporation (NASDAQ:SBUX) have earned an average rating of “Moderate Buy” from the thirty-three ratings firms that are currently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation, twenty have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $107.9286.

Several research analysts have recently weighed in on SBUX shares. Jefferies Financial Group began coverage on Starbucks in a research note on Thursday, May 14th. They set a “buy” rating for the company. Robert W. Baird increased their price objective on shares of Starbucks from $112.00 to $117.00 and gave the company an “outperform” rating in a report on Wednesday, April 29th. DA Davidson lifted their target price on shares of Starbucks from $97.00 to $102.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 29th. Scotiabank lowered Starbucks from a “market perform” rating to an “underperform” rating in a research note on Thursday, May 14th. Finally, Guggenheim restated a “neutral” rating and issued a $97.00 price objective (up from $95.00) on shares of Starbucks in a report on Wednesday, April 29th.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Recent coverage says Starbucks is seeing stronger traffic growth as better service, faster operations, and improved customer experience initiatives help support its turnaround, which is encouraging for sales momentum.
• Positive Sentiment: Starbucks is reportedly considering a stake sale or IPO for its Japan business after already selling a majority stake in China, a move that could unlock value and strengthen the balance sheet.
• Positive Sentiment: The company also reiterated a broad expansion plan to open 5,000 new stores, but in a smaller-format model, which could help lower buildout costs and improve long-term unit economics.
• Neutral Sentiment: CEO Brady Brewer sold a small number of shares through a pre-arranged trading plan. The sale appears routine and is unlikely to be a major signal on its own.
• Neutral Sentiment: Several articles compare Starbucks with rivals like McDonald’s, Dutch Bros, and 7 Brew, reinforcing that competition remains intense in coffee but not changing the near-term story by itself.
• Negative Sentiment: Starbucks Korea is facing a major backlash after a marketing misstep tied to “Tank Day,” leading to boycotts, a public apology, an investigation, and an early nationwide store closure for mandatory training, which could hurt brand perception and sales in a key market. Starbucks Korea Shuts Stores Early After Boycott Hits Revenue
• Negative Sentiment: Another report highlighted that a large fund sold Starbucks shares, which may reflect some institutional caution even though it does not necessarily change the long-term outlook.

Insider Buying and Selling

In related news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total transaction of $233,621.49. Following the completion of the transaction, the chief executive officer directly owned 81,559 shares of the company’s stock, valued at $8,548,198.79. The trade was a 2.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the sale, the executive vice president directly owned 57,653 shares in the company, valued at $6,053,565. This represents a 3.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,687 shares of company stock valued at $863,707 in the last 90 days. Company insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new stake in shares of Starbucks during the 4th quarter worth approximately $1,232,650,000. Capital Research Global Investors increased its position in shares of Starbucks by 11.4% in the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock valued at $7,229,968,000 after buying an additional 8,774,198 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its position 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 valued at $1,637,704,000 after buying an additional 7,725,547 shares in the last quarter. Capital World Investors raised 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 worth $7,135,228,000 after buying an additional 7,007,268 shares during the last quarter. Finally, Corient Private Wealth LLC grew its stake in Starbucks by 146.6% in 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 last quarter. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Stock Down 0.4%

NASDAQ SBUX opened at $101.25 on Wednesday. The firm has a market cap of $115.40 billion, a PE ratio of 76.92, a price-to-earnings-growth ratio of 2.00 and a beta of 0.98. Starbucks has a 52 week low of $77.99 and a 52 week high of $108.88. The company has a 50 day moving average price of $100.72 and a 200 day moving average price of $94.94.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.06. The firm had revenue of $9.53 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.Starbucks’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, equities research analysts anticipate that Starbucks will post 2.42 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 15th were paid a dividend of $0.62 per share. The ex-dividend date was Friday, May 15th. This represents a $2.48 dividend on an annualized basis and a yield of 2.4%. Starbucks’s dividend payout ratio is 187.88%.

Starbucks Company 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.