Starbucks Corporation (NASDAQ:SBUX) Stock Has Average Target Price of $110.80

Key Points

• Analysts rate Starbucks a “Hold” on average, with 23 buys, 12 holds and five sells; the average 12-month price target is $110.80, although several firms recently lowered their targets.
• Starbucks beat quarterly earnings expectations with $0.85 EPS versus $0.66 expected and $9.32 billion in revenue, while revenue declined 1.4% year over year. The company also raised its quarterly dividend to $0.63 per share, a 2.7% yield.
• Shares gained after Starbucks denied speculation that it was pursuing a Chipotle acquisition, easing concerns about acquisition costs and strategic distraction as investors refocus on the company’s turnaround and operating performance.

Shares of Starbucks Corporation (NASDAQ:SBUX - Get Free Report) have earned an average recommendation of "Hold" from the forty ratings firms that are covering the firm, Marketbeat reports. Five investment analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation and twenty-three have issued a buy recommendation on the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $110.80.

Several equities research analysts have recently commented on the stock. UBS Group reiterated a "neutral" rating and set a $105.00 price target (down from $112.00) on shares of Starbucks in a research report on Thursday. JPMorgan Chase & Co. dropped their price target on shares of Starbucks from $112.00 to $105.00 and set an "overweight" rating for the company in a research note on Tuesday, September 29th. Morgan Stanley lowered shares of Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $126.00 price objective (up from $120.00) on shares of Starbucks in a research note on Thursday, July 30th. Finally, CICC Research raised their price objective on shares of Starbucks from $95.00 to $110.00 and gave the company an "outperform" rating in a research note on Thursday, August 6th.

Starbucks Stock Up 1.7%

Shares of SBUX stock opened at $92.29 on Tuesday. The stock has a 50-day moving average price of $101.02 and a 200 day moving average price of $100.96. The firm has a market cap of $105.21 billion, a price-to-earnings ratio of 53.04, a PEG ratio of 1.31 and a beta of 0.98. Starbucks has a 12 month low of $77.99 and a 12 month high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping the consensus estimate 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 period in the previous year, the business posted $0.50 EPS. The company's quarterly revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Sell-side analysts predict that Starbucks will post 2.59 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Friday, November 13th. This is a positive change from Starbucks's previous quarterly dividend of $0.62. Starbucks's dividend payout ratio is presently 142.53%.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks publicly stated, “We are not buying Chipotle,” ending several days of speculation that it had hired advisers to explore a takeover. Investors appeared to view the decision favorably because it avoids acquisition costs, integration risks and possible balance-sheet pressure. Starbucks says it is not buying Chipotle after takeover speculation
• Positive Sentiment: The stock advanced even as the broader market declined, suggesting the Chipotle clarification was the primary near-term catalyst for SBUX. Chipotle shares fell as takeover hopes disappeared, while Starbucks benefited from the removal of a potentially distracting strategic risk. Why the Market Dipped But Starbucks Gained Today
• Neutral Sentiment: The speculation was partly linked to Starbucks CEO Brian Niccol’s previous leadership of Chipotle, but reports did not establish that a transaction was imminent. With the rumor now rejected, investors are likely to refocus on Starbucks’ operating performance, including its turnaround execution and same-store sales. Starbucks could acquire Chipotle in blockbuster restaurant deal
• Positive Sentiment: A separate report highlighted Starbucks’ dividend increase, providing additional shareholder support while management works through the turnaround. However, the acquisition denial—not the dividend news—was the dominant reported catalyst for the stock’s move. 3 Stocks Raise Dividends, But Which Has Room to Keep Growing?

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $105.60, for a total value of $235,382.40. Following the transaction, the chief executive officer directly owned 73,149 shares in the company, valued at $7,724,534.40. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 6,099 shares of company stock valued at $627,135. Corporate insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Starbucks

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in Starbucks during the 2nd quarter worth approximately $8,504,509,000. State Street Corp grew its stake in Starbucks by 3.2% in the second quarter. State Street Corp now owns 49,260,268 shares of the coffee company's stock valued at $5,033,907,000 after acquiring an additional 1,530,497 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in 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 acquiring an additional 7,725,547 shares during the period. Bank of America Corp DE bought a new stake in shares of Starbucks in the second quarter worth about $1,581,287,000. Finally, Invesco Ltd. increased its holdings in shares of Starbucks by 7.5% in the fourth quarter. Invesco Ltd. now owns 14,607,392 shares of the coffee company's stock worth $1,230,088,000 after acquiring an additional 1,016,898 shares in the last quarter. Institutional investors own 72.29% of the company's stock.

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.

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