Starbucks Corporation (NASDAQ:SBUX) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Starbucks, with 19 buys, 11 holds and four sells among 34 firms. The average 12-month price target is approximately $110.30.
• Starbucks exceeded quarterly expectations, reporting $0.85 in EPS versus the $0.66 consensus and $9.32 billion in revenue versus $9.17 billion expected, although revenue declined 1.4% year over year.
• The stock opened at $107.08 and trades at a demanding P/E ratio of 61.54; Starbucks also declared a quarterly dividend of $0.62 per share, representing a 2.3% yield.

Shares of Starbucks Corporation (NASDAQ:SBUX - Get Free Report) have been assigned an average rating of "Hold" from the thirty-four research firms that are covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation and nineteen have given a buy recommendation to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $110.2963.

SBUX has been the topic of several research analyst reports. Scotiabank cut Starbucks from a "market perform" rating to an "underperform" rating in a research report on Thursday, May 14th. Stephens began coverage on Starbucks in a report on Thursday, May 14th. They issued an "overweight" rating for the company. Sanford C. Bernstein cut Starbucks from an "outperform" rating to a "market perform" rating in a research note on Monday, August 3rd. TD Cowen reaffirmed a "buy" rating on shares of Starbucks in a report on Tuesday, August 18th. Finally, Needham & Company LLC set a $120.00 price target on shares of Starbucks in a research report on Tuesday, August 18th.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total value of $236,251.71. Following the transaction, the chief executive officer owned 75,135 shares of the company's stock, valued at approximately $7,963,558.65. This represents a 2.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,687 shares of company stock valued at $681,663 in the last quarter. Insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently modified their holdings of the stock. Brighton Jones LLC lifted its holdings in shares of Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock valued at $16,126,000 after purchasing an additional 81,952 shares during the last quarter. Schnieders Capital Management LLC. increased its stake in Starbucks by 47.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after purchasing an additional 1,164 shares in the last quarter. Flow Traders U.S. LLC purchased a new position in Starbucks in the 2nd quarter worth about $288,000. Gamco Investors INC. ET AL raised its holdings in Starbucks by 92.8% during the 2nd quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock worth $479,000 after buying an additional 2,515 shares during the period. Finally, NewEdge Advisors LLC raised its holdings in Starbucks by 7.6% during the 2nd quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock worth $10,328,000 after buying an additional 7,978 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Price Performance

Shares of SBUX opened at $107.08 on Monday. The firm has a market capitalization of $122.07 billion, a PE ratio of 61.54, a P/E/G ratio of 1.85 and a beta of 0.97. The firm has a 50-day moving average price of $104.45 and a 200 day moving average price of $100.43. Starbucks has a 52-week low of $77.99 and a 52-week high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, topping analysts' consensus estimates of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The company had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. During the same period in the previous year, the firm earned $0.50 EPS. Starbucks's revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities analysts expect that Starbucks will post 2.64 EPS for the current year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks's dividend payout ratio (DPR) is presently 142.53%.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is eliminating more than 200 corporate positions as part of a broader restructuring and approximately $2 billion cost-reduction effort. Lower overhead could support profitability if the company maintains service levels and directs more resources toward its stores. The reductions do not involve cafe closures. Starbucks trims corporate ranks as coffeehouse investments deliver
• Positive Sentiment: Recent market commentary highlights Starbucks’ roughly 25% 2026 gain and suggests investors are rewarding its operational reset and investments in the cafe experience. The rally follows the company’s latest quarterly earnings beat, with adjusted EPS of $0.85 versus a $0.66 consensus estimate and revenue above expectations.
• Neutral Sentiment: The restructuring is relocating some corporate operations to a new, approximately $100 million Nashville office. Around 120 Seattle employees reportedly declined the move, while another 104 roles in store design and construction are being eliminated. Management characterizes the actions as part of the restructuring winding down, but the savings and impact on execution remain to be demonstrated. Starbucks cuts another 224 Seattle jobs
• Negative Sentiment: Starbucks continues to face challenges in China, where domestic competitors, shifting consumer preferences and geopolitical tensions are eroding the position of major U.S. brands. China weakness could limit international growth and pressure comparable sales. Why some of America’s biggest brands are losing ground in China
• Negative Sentiment: The stock’s strong performance has also produced a demanding valuation, with the supplied data showing a P/E ratio above 60. Investors may require sustained earnings growth from the turnaround to justify the premium, leaving SBUX vulnerable to disappointment.

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.

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