Starbucks Corporation (NASDAQ:SBUX) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Starbucks has a consensus rating of “Moderate Buy” from 33 analysts, with 20 buy ratings and an average 12-month target price of about $107.48.
• The company’s latest earnings beat expectations, reporting $0.50 EPS versus $0.44 expected and $9.53 billion in revenue versus $9.17 billion expected, while revenue rose 8.8% year over year.
• Starbucks also paid a quarterly dividend of $0.62 per share, equal to an annualized yield of 2.5%, though insider sales and a very high payout ratio may be points of attention for investors.

Shares of Starbucks Corporation (NASDAQ:SBUX - Get Free Report) have been given a consensus rating of "Moderate Buy" by the thirty-three research firms that are covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation, twenty have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $107.4828.

A number of equities analysts have commented on SBUX shares. Wedbush started coverage on Starbucks in a report on Thursday, May 14th. They set an "outperform" rating for the company. DA Davidson increased their target price on Starbucks from $97.00 to $102.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Robert W. Baird increased their target price on Starbucks from $112.00 to $117.00 and gave the company an "outperform" rating in a report on Wednesday, April 29th. Wolfe Research began coverage on Starbucks in a report on Monday, March 9th. They issued a "peer perform" rating for the company. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Starbucks in a report on Wednesday, March 4th.

Starbucks Price Performance

Shares of Starbucks stock opened at $97.41 on Wednesday. The business has a 50 day simple moving average of $99.52 and a two-hundred day simple moving average of $94.35. Starbucks has a 12 month low of $77.99 and a 12 month high of $108.88. The stock has a market capitalization of $111.02 billion, a P/E ratio of 73.80, a PEG ratio of 1.87 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.06. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business had revenue of $9.53 billion during the quarter, compared to analysts' expectations of $9.17 billion. During the same quarter in the prior year, the firm earned $0.41 earnings per share. The business's revenue was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, research analysts anticipate that Starbucks will post 2.42 EPS for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were issued a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Friday, May 15th. Starbucks's dividend payout ratio (DPR) is currently 187.88%.

Insider Activity at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of the stock in a transaction that occurred on Wednesday, April 29th. The stock was 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 1,641 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $94.33, for a total value of $154,795.53. Following the completion of the sale, the chief executive officer directly owned 80,181 shares of the company's stock, valued at approximately $7,563,473.73. This represents a 2.01% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 8,099 shares of company stock valued at $804,907. Insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Starbucks

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its position in Starbucks by 86.5% in the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after acquiring an additional 81,952 shares during the period. Schnieders Capital Management LLC. grew its position in Starbucks by 47.0% in the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company's stock worth $334,000 after acquiring an additional 1,164 shares during the period. Flow Traders U.S. LLC purchased a new position in Starbucks in the second quarter worth approximately $288,000. Gamco Investors INC. ET AL grew its position in Starbucks by 92.8% in the second quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company's stock worth $479,000 after acquiring an additional 2,515 shares during the period. Finally, NewEdge Advisors LLC grew its position in Starbucks by 7.6% in the second quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company's stock worth $10,328,000 after acquiring an additional 7,978 shares during the period. Institutional investors and hedge funds own 72.29% of the company's stock.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is getting favorable attention for expanding its Refreshers lineup, including blended versions that management says could drive more afternoon visits and incremental sales from younger customers. Starbucks' latest drink launch is a bet on the future of fast food beverages
• Positive Sentiment: Investors are also encouraged by reports that Starbucks is seeing encouraging growth beyond the morning rush, suggesting the company’s turnaround efforts are starting to improve traffic patterns and revenue mix. Starbucks Sees Encouraging Growth beyond the Morning Rush, CNBC Reports
• Positive Sentiment: Analyst commentary remains constructive, with coverage highlighting Starbucks’ $2 billion cost-savings plan and improving margins as potential catalysts for stronger EPS growth. Can Starbucks' $2 Billion Cost-Savings Plan Accelerate EPS Growth?
• Positive Sentiment: Starbucks’ CEO also signaled international expansion as part of the company’s growth push, reinforcing the view that management sees room for long-term sales gains. Starbucks Stock (SBUX) Turns Frothy as CEO Talks International Expansion
• Neutral Sentiment: Starbucks CEO Brady Brewer disclosed a pre-arranged sale of 1,641 shares under a 10b5-1 plan, which is unlikely to be interpreted as a major change in fundamentals but can add modest overhang. SEC filing
• Negative Sentiment: One external note highlighted broader market weakness in AI and tech stocks, but this is not directly tied to Starbucks’ business and appears to have limited impact on SBUX. Deja Vu? AI Overspending Fears Renew

About Starbucks

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.