Starbucks Corporation (NASDAQ:SBUX) Stock Has Consensus Price Target of $108.89 According to Analysts

Key Points

• Analysts have a mixed but slightly positive view: Of 40 covering firms, 21 rate Starbucks a buy, 15 a hold and four a sell; the average 12-month price target is $108.89.
• U.S. comparable sales rose 7.7% in fiscal Q4, supported by customer traffic and average ticket growth, though slowing transaction growth and store closures may make the rebound harder to sustain.
• Quarterly EPS of $0.80 beat analysts’ $0.72 estimate, but revenue of $9.14 billion missed expectations and fell 4.5% year over year. Starbucks also raised its quarterly dividend to $0.63 per share.

Shares of Starbucks Corporation (NASDAQ:SBUX - Get Free Report) have been given a consensus recommendation of "Hold" by the forty research firms that are covering the stock, Marketbeat reports. Four investment analysts have rated the stock with a sell rating, fifteen have issued a hold rating and twenty-one have issued a buy rating on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $108.89.

Several equities analysts have recently issued reports on the stock. Weiss Ratings downgraded shares of Starbucks from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday. Guggenheim restated a "neutral" rating and set a $103.00 price objective (up from $97.00) on shares of Starbucks in a research report on Monday. Seaport Research Partners began coverage on Starbucks in a report on Wednesday, September 16th. They set a "neutral" rating on the stock. Wells Fargo & Company lowered their price target on shares of Starbucks from $125.00 to $120.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 21st. Finally, BTIG Research reissued a "buy" rating and issued a $115.00 price target on shares of Starbucks in a research note on Friday, October 30th.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: U.S. comparable sales rose 7.7% in fiscal Q4, driven by stronger customer traffic and average tickets—evidence of improving business momentum. Starbucks' U.S. Comps Jump 7.7%: Can Traffic Momentum Last?
• Neutral Sentiment: UBS raised its price target from $105 to $110, implying 4.4% upside from the cited price, but maintained a “neutral” rating—suggesting measured rather than strong conviction. UBS Group stock recommendations
• Negative Sentiment: Investors may question the durability of the sales rebound: transaction growth is slowing, and store closures contributed to the comparison, potentially making the reported improvement harder to sustain. Starbucks' U.S. Comps Jump 7.7%: Can Traffic Momentum Last?

Insider Buying and Selling

In related news, CEO Brady Brewer sold 2,229 shares of the firm's stock in a transaction dated Friday, September 4th. The shares were 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 of the company's stock, valued at approximately $7,724,534.40. This trade represents a 2.96% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 4,458 shares of company stock worth $449,684. Company insiders own 0.03% of the company's stock.

Institutional Trading of Starbucks

Several hedge funds have recently modified their holdings of the stock. Wellington Grp LLC increased its stake in shares of Starbucks by 64.5% in the 3rd quarter. Wellington Grp LLC now owns 14,148 shares of the coffee company's stock valued at $1,329,000 after purchasing an additional 5,545 shares during the last quarter. Diversified Trust Co grew its stake in Starbucks by 18.6% in the third quarter. Diversified Trust Co now owns 11,811 shares of the coffee company's stock worth $1,110,000 after purchasing an additional 1,854 shares in the last quarter. Vista Capital Partners Inc. purchased a new position in shares of Starbucks during the third quarter worth $2,799,000. BankPlus Trust Department boosted its position in shares of Starbucks by 4.1% during the 3rd quarter. BankPlus Trust Department now owns 3,952 shares of the coffee company's stock valued at $371,000 after acquiring an additional 155 shares during the last quarter. Finally, Financial Freedom LLC acquired a new position in Starbucks during the 3rd quarter worth approximately $30,000. 72.29% of the stock is owned by institutional investors.

Starbucks Price Performance

SBUX stock opened at $105.41 on Friday. The firm has a fifty day moving average price of $99.15 and a two-hundred day moving average price of $100.05. The firm has a market cap of $120.17 billion, a price-to-earnings ratio of 47.70, a PEG ratio of 1.73 and a beta of 1.01. Starbucks has a 1-year low of $81.76 and a 1-year high of $111.50.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.08. The business had revenue of $9.14 billion for the quarter, compared to the consensus estimate of $9.22 billion. Starbucks had a net margin of 6.66% and a negative return on equity of 38.61%. The firm's quarterly revenue was down 4.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.52 EPS. As a group, analysts expect that Starbucks will post 3.22 EPS for the current fiscal year.

Starbucks Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a $0.63 dividend. This is a boost from Starbucks's previous quarterly dividend of $0.62. The ex-dividend date is Friday, November 13th. This represents a $2.52 annualized dividend and a dividend yield of 2.4%. Starbucks's dividend payout ratio (DPR) is currently 112.22%.

Starbucks Company Profile

Starbucks Corporation is a global coffee company that roasts, markets and sells coffee and other beverages, along with food and related merchandise. Its offerings include brewed coffee, espresso-based drinks, teas and packaged coffee products.

The company serves customers through company-operated and licensed stores, as well as through retail and food-service partnerships. Its stores also sell items such as mugs and coffee-making equipment.

Founded in Seattle in 1971, Starbucks operates in North America and international markets, including China.

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