Starbucks Corporation (NASDAQ:SBUX) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Starbucks has a consensus analyst rating of “Moderate Buy” from 31 covering firms, with an average 1-year price target of about $108.92.
• The company recently reported better-than-expected quarterly results, posting $0.50 EPS versus $0.44 expected and revenue of $9.53 billion, up 8.8% year over year.
• Starbucks also announced a quarterly dividend of $0.62 per share, payable Aug. 28, implying an annualized yield of 2.4%, while insiders have sold shares in recent months.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) has been given an average recommendation of "Moderate Buy" by the thirty-one ratings firms that are presently covering the stock, Marketbeat reports. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and nineteen have given a buy rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $108.9231.

Several analysts recently issued reports on SBUX shares. UBS Group downgraded Starbucks from a "neutral" rating to a "neutral" rating in a research note on Thursday, May 14th. Morgan Stanley upgraded Starbucks from an "overweight" rating to an "overweight" rating in a research report on Thursday, May 14th. Citigroup lifted their target price on Starbucks from $99.00 to $101.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Stifel Nicolaus set a $117.00 price target on shares of Starbucks and gave the company a "buy" rating in a research note on Wednesday, May 6th. Finally, Evercore raised their price target on shares of Starbucks from $110.00 to $115.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th.

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the sale, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the sale, the executive vice president owned 57,653 shares of the company's stock, valued at approximately $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,687 shares of company stock worth $863,707 over the last ninety days. Insiders own 0.03% of the company's stock.

Institutional Trading of Starbucks

Institutional investors have recently modified their holdings of the stock. Rachor Investment Advisory Services LLC acquired a new position in Starbucks in the fourth quarter valued at about $25,000. Phillip James Consulting Co. acquired a new stake in Starbucks during the fourth quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new stake in Starbucks during the fourth quarter worth about $25,000. Entrust Financial LLC bought a new position in Starbucks in the 4th quarter valued at about $26,000. Finally, Financial Freedom LLC increased its holdings in Starbucks by 296.2% in 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 institutional investors.

Starbucks Price Performance

Shares of SBUX stock opened at $104.27 on Friday. Starbucks has a 12-month low of $77.99 and a 12-month high of $108.88. The company has a market capitalization of $118.84 billion, a PE ratio of 78.99, a price-to-earnings-growth ratio of 2.07 and a beta of 0.98. The firm has a 50 day moving average price of $101.97 and a two-hundred day moving average price of $96.45.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.44 by $0.06. The company had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm's revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, research analysts expect that Starbucks will post 2.4 EPS for the current year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, August 14th. Starbucks's dividend payout ratio is presently 187.88%.

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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