Starbucks (NASDAQ:SBUX) Stock Rating Reaffirmed as "Neutral" by DA Davidson

Starbucks (NASDAQ:SBUX - Get Free Report)'s stock had its "neutral" rating reiterated by research analysts at DA Davidson in a research note issued to investors on Friday, Benzinga reports. They currently have a $110.00 target price on the coffee company's stock. DA Davidson's target price indicates a potential upside of 18.01% from the company's previous close.

SBUX has been the topic of a number of other reports. Evercore reissued an "outperform" rating on shares of Starbucks in a research note on Thursday, July 30th. Zacks Research lowered Starbucks from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. BTIG Research reissued a "buy" rating on shares of Starbucks in a research note on Thursday. Raymond James Financial lowered Starbucks to an "outperform" rating in a research note on Monday, August 3rd. Finally, Robert W. Baird raised Starbucks to a "strong-buy" rating in a research note on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $110.22.

Starbucks Stock Performance

NASDAQ:SBUX opened at $93.21 on Friday. Starbucks has a 1 year low of $77.99 and a 1 year high of $110.51. The stock has a market capitalization of $106.26 billion, a price-to-earnings ratio of 53.57, a PEG ratio of 1.35 and a beta of 0.98. The stock has a fifty day moving average price of $101.54 and a two-hundred day moving average price of $100.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating analysts' consensus estimates of $0.66 by $0.19. The business had revenue of $9.32 billion during the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The business's revenue for the quarter was down 1.4% on a year-over-year basis. During the same quarter last year, the business posted $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, analysts predict that Starbucks will post 2.59 EPS for the current year.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 1,641 shares of the firm's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $94.76, for a total transaction of $155,501.16. Following the sale, the chief executive officer directly owned 71,508 shares in the company, valued at approximately $6,776,098.08. This trade represents a 2.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 6,099 shares of company stock worth $627,135. Company insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Starbucks

Hedge funds have recently modified their holdings of the stock. Meeder Asset Management Inc. purchased a new stake in shares of Starbucks during the 2nd quarter valued at about $25,000. Black Cypress Capital Management LLC purchased a new stake in shares of Starbucks during the 2nd quarter valued at about $27,000. Phillip James Consulting Co. purchased a new stake in shares of Starbucks during the 4th quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Starbucks during the 4th quarter valued at about $25,000. Finally, Financial Freedom LLC raised its holdings in shares of Starbucks by 296.2% during the 1st quarter. Financial Freedom LLC now owns 313 shares of the coffee company's stock valued at $28,000 after buying an additional 234 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Citigroup sees strategic potential in combining the two restaurant brands, particularly through Niccol’s prior experience leading Chipotle and possible international expansion opportunities. However, the report remains exploratory and no deal has been confirmed. Citi Sees Strategic Potential in Starbucks-Chipotle Takeover
• Positive Sentiment: DA Davidson reaffirmed its Neutral rating but maintained a $110 price target, implying meaningful upside from the stock’s recent level. Investors may view the target as support for Starbucks’ standalone turnaround potential. DA Davidson Starbucks Rating
• Neutral Sentiment: Starbucks raised its quarterly dividend from $0.62 to $0.63 per share, bringing the annualized payout to $2.52. The increase signals confidence in cash generation, although the company’s elevated valuation and payout ratio remain important considerations. Starbucks Announces Dividend Increase
• Neutral Sentiment: Starbucks is scheduled to report fourth-quarter and full-year fiscal 2026 results after the market close on October 29. Its latest quarter beat earnings and revenue estimates, but revenue declined 1.4% year over year, leaving investors focused on evidence that the recovery is sustainable. Starbucks Fiscal 2026 Results Conference Call
• Negative Sentiment: Analysts warn that purchasing Chipotle could saddle Starbucks with substantial debt and integration costs while it is still closing underperforming stores and rebuilding customer traffic. Several reports describe the probability of a completed deal as low, increasing the risk that the rumor creates volatility without a clear strategic outcome. Why a Starbucks Takeover of Chipotle Would and Wouldn’t Make Sense
• Negative Sentiment: The reported takeover interest has pushed Starbucks shares lower as investors favor management concentrating on the core coffee business and turnaround rather than pursuing a record-sized restaurant acquisition. Starbucks Explored Chipotle Takeover

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company that operates coffeehouses and sells coffee, tea and other beverages, along with food products and merchandise. Its menu includes brewed coffee, espresso-based drinks, cold beverages, teas, bakery items and ready-to-eat food. Starbucks also markets packaged coffee, ready-to-drink beverages and related products through retail and grocery channels, often through licensing and other business partnerships.

Founded in Seattle in 1971, Starbucks expanded from a local coffee retailer into an international brand.