Starbucks Corporation (NASDAQ:SBUX) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Starbucks Corporation (NASDAQ:SBUX) have been given a consensus recommendation of “Moderate Buy” by the thirty-one brokerages that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, ten have given a hold recommendation and nineteen have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $108.9231.

Several equities analysts have commented on the company. Evercore raised their price objective on Starbucks from $110.00 to $115.00 and gave the company an “outperform” rating in a research report on Wednesday, April 29th. Guggenheim reiterated a “neutral” rating and issued a $97.00 price target (up from $95.00) on shares of Starbucks in a research note on Wednesday, April 29th. Dbs Bank raised shares of Starbucks from a “strong sell” rating to a “moderate sell” rating in a research report on Friday, March 20th. Wells Fargo & Company reissued an “overweight” rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Wednesday, April 29th. Finally, TD Cowen upgraded shares of Starbucks from a “hold” rating to a “buy” rating and upped their price objective for the stock from $106.00 to $120.00 in a report on Thursday, May 14th.

Insider Activity at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the completion of the transaction, the executive vice president owned 57,653 shares of the company’s stock, valued at $6,053,565. This trade represents a 3.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction on Monday, July 6th. The shares were sold at an average price of $104.00, for a total value of $231,816.00. Following the transaction, the chief executive officer owned 77,364 shares of the company’s stock, valued at $8,045,856. The trade was a 2.80% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 9,275 shares of company stock worth $947,833 in the last 90 days. 0.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Starbucks

Several large investors have recently modified their holdings of SBUX. Sunbelt Securities Inc. increased its stake in Starbucks by 1.0% during the 1st quarter. Sunbelt Securities Inc. now owns 9,473 shares of the coffee company’s stock valued at $849,000 after purchasing an additional 97 shares in the last quarter. Beta Wealth Group Inc. lifted its stake in shares of Starbucks by 1.7% in the first quarter. Beta Wealth Group Inc. now owns 6,114 shares of the coffee company’s stock worth $548,000 after buying an additional 103 shares in the last quarter. NWF Advisory Services Inc. grew its holdings in shares of Starbucks by 2.6% during the fourth quarter. NWF Advisory Services Inc. now owns 4,349 shares of the coffee company’s stock valued at $366,000 after buying an additional 109 shares during the last quarter. Godshalk Welsh Capital Management Inc. grew its holdings in shares of Starbucks by 0.8% during the first quarter. Godshalk Welsh Capital Management Inc. now owns 13,610 shares of the coffee company’s stock valued at $1,219,000 after buying an additional 110 shares during the last quarter. Finally, Eastern Bank increased its position in shares of Starbucks by 0.9% during the second quarter. Eastern Bank now owns 13,115 shares of the coffee company’s stock valued at $1,340,000 after acquiring an additional 111 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Stock Performance

Shares of NASDAQ:SBUX opened at $106.41 on Friday. Starbucks has a 52-week low of $77.99 and a 52-week high of $108.88. The firm has a market capitalization of $121.28 billion, a P/E ratio of 80.61, a P/E/G ratio of 2.06 and a beta of 0.98. The stock has a 50 day moving average price of $102.42 and a 200-day moving average price of $97.01.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.06. The company 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%.The firm’s revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, equities analysts forecast that Starbucks will post 2.4 EPS for the current fiscal year.

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders 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 dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks’s payout ratio is currently 187.88%.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is reportedly developing in-house AI tools that could replace third-party software, potentially lowering its software and operating expenses and improving margins. Starbucks Stock Rises Amid In-House Software Push
• Positive Sentiment: Investors are also encouraged by the idea that Starbucks can use AI to reduce reliance on outside vendors, supporting a broader cost-reduction initiative and possible earnings leverage over time. Starbucks Targets $400 Million Software Spend With AI Shift
• Positive Sentiment: Recent commentary has also kept focus on Starbucks’ improving traffic, loyalty growth, and turnaround efforts, which has helped sustain bullish sentiment near the stock’s recent highs. Starbucks Near Its 52-Week High: Can the Stock Sustain the Rally?
• Neutral Sentiment: CEO Brady Brewer sold shares under a pre-arranged 10b5-1 plan. The sale is not necessarily a negative signal, but investors may still note the insider transaction. SEC Form 4 filing
• Neutral Sentiment: Starbucks remains near its 52-week high after a strong run, which can attract momentum buyers but also raises valuation concerns for some investors. Starbucks Near Its 52-Week High: Can the Stock Sustain the Rally?

About Starbucks

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.