Starbucks (NASDAQ:SBUX) Downgraded to “Strong Sell” Rating by Zacks Research

Starbucks (NASDAQ:SBUX) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research firms also recently issued reports on SBUX. BMO Capital Markets reissued an “outperform” rating on shares of Starbucks in a research note on Thursday, October 30th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Starbucks in a report on Monday. Citigroup dropped their target price on Starbucks from $84.00 to $83.00 and set a “neutral” rating on the stock in a research report on Thursday, October 30th. Sanford C. Bernstein set a $100.00 price target on Starbucks and gave the stock an “outperform” rating in a research report on Thursday, October 30th. Finally, Barclays decreased their price target on shares of Starbucks from $115.00 to $95.00 and set an “overweight” rating for the company in a research note on Wednesday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $101.44.

Starbucks Stock Performance

Shares of SBUX opened at $85.25 on Monday. The firm has a market cap of $96.94 billion, a P/E ratio of 51.98, a PEG ratio of 1.78 and a beta of 0.98. Starbucks has a twelve month low of $75.50 and a twelve month high of $117.46. The firm’s 50 day moving average price is $84.84 and its two-hundred day moving average price is $87.40.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Wednesday, October 29th. The coffee company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). The company had revenue of $9.57 billion for the quarter, compared to analyst estimates of $9.41 billion. Starbucks had a negative return on equity of 31.32% and a net margin of 4.99%.The company’s revenue was up 5.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.80 earnings per share. On average, sell-side analysts anticipate that Starbucks will post 2.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Jorgen Vig Knudstorp purchased 11,700 shares of the company’s stock in a transaction on Monday, November 10th. The shares were purchased at an average cost of $85.00 per share, with a total value of $994,500.00. Following the completion of the transaction, the director owned 53,096 shares of the company’s stock, valued at $4,513,160. The trade was a 28.26% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.09% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SBUX. Alliance Wealth Advisors LLC lifted its stake in Starbucks by 2.1% in the 2nd quarter. Alliance Wealth Advisors LLC now owns 5,170 shares of the coffee company’s stock valued at $474,000 after purchasing an additional 108 shares during the last quarter. Cooper Haims Advisors LLC increased its position in Starbucks by 3.0% during the second quarter. Cooper Haims Advisors LLC now owns 3,749 shares of the coffee company’s stock worth $344,000 after buying an additional 110 shares during the last quarter. Brown Lisle Cummings Inc. raised its stake in Starbucks by 1.4% in the second quarter. Brown Lisle Cummings Inc. now owns 8,293 shares of the coffee company’s stock valued at $760,000 after buying an additional 117 shares during the period. Diligent Investors LLC lifted its position in shares of Starbucks by 1.9% in the second quarter. Diligent Investors LLC now owns 6,132 shares of the coffee company’s stock valued at $562,000 after buying an additional 117 shares during the last quarter. Finally, Silver Oak Securities Incorporated lifted its position in shares of Starbucks by 2.4% in the third quarter. Silver Oak Securities Incorporated now owns 5,288 shares of the coffee company’s stock valued at $447,000 after buying an additional 122 shares during the last quarter. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Key Stores Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks announced a partnership with YouTube star MrBeast that aims to boost brand relevance with younger audiences and drive short‑term traffic/marketing buzz. Article Title
• Positive Sentiment: News that Starbucks is positioning AI as a “co‑pilot” for operations and service lifted sentiment by suggesting potential efficiency gains and labor‑cost mitigation without wholesale job displacement. This narrative has supported recent intraday gains. Article Title
• Positive Sentiment: Coverage suggesting Starbucks has largely blunted unionization progress (management winning the labor battle) supports outlook for margin stability and lower near‑term labor cost risk. Article Title
• Neutral Sentiment: CEO Brian Niccol is steering the brand toward a friendlier, neighborhood “coffee shop” feel — a strategic repositioning that could help traffic but will take time to show in results. Article Title
• Neutral Sentiment: Starbucks is pruning locations in major metros (less emphasis on being on every corner in NYC/LA) and, along with other chains, closed stores in 2025 — a mix of portfolio optimization and demand response. That can improve unit economics over time but signals softer traffic. Article Title
• Negative Sentiment: Technical and sentiment pieces warn SBUX has repeatedly failed breakouts, making it risky for momentum traders and pressuring the stock in the near term. Article Title
• Negative Sentiment: At least one consumer‑stocks roundup lists Starbucks among names to avoid, reflecting bearish analyst commentary on growth and valuation risks (SBUX trades at a premium multiple). Article Title

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.