Starbucks (NASDAQ:SBUX) Hits New 12-Month High - Here's Why

Key Points

• Starbucks hit a new 52-week high, with shares trading as high as $108.04 after closing at $104.93 the prior day. The stock was last up about 0.8% on the session.
• Recent earnings topped expectations: Starbucks reported $0.50 EPS versus the $0.44 consensus and revenue of $9.53 billion versus $9.17 billion expected. Revenue rose 8.8% year over year, and the company raised its FY2026 EPS guidance to $2.25-$2.45.
• Analyst sentiment remains constructive, with several firms lifting price targets and the consensus rating sitting at “Moderate Buy.” The average target price is $107, roughly in line with the stock’s recent trading range.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $108.04 and last traded at $105.74, with a volume of 6497916 shares traded. The stock had previously closed at $104.93.

Analyst Ratings Changes

Several equities analysts recently commented on the company. UBS Group restated a "neutral" rating and set a $105.00 target price (up from $100.00) on shares of Starbucks in a research report on Wednesday, April 29th. Royal Bank Of Canada restated a "sector perform" rating and set a $110.00 target price (up from $105.00) on shares of Starbucks in a research report on Wednesday, April 29th. Sanford C. Bernstein restated an "outperform" rating on shares of Starbucks in a research report on Wednesday, March 4th. Morgan Stanley raised their target price on Starbucks from $105.00 to $110.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 29th. Finally, Citigroup raised their price target on Starbucks from $99.00 to $101.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $107.00.

Starbucks Trading Up 0.8%

The company has a market capitalization of $120.51 billion, a price-to-earnings ratio of 80.11, a PEG ratio of 2.12 and a beta of 1.01. The company has a 50 day moving average price of $97.36 and a 200 day moving average price of $91.82.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $9.17 billion. During the same period last year, the company earned $0.41 EPS. The firm's revenue was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Equities analysts predict that Starbucks Corporation will post 2.41 earnings per share for the current year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be given a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, May 15th. Starbucks's dividend payout ratio (DPR) is currently 187.88%.

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 Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total value of $233,621.49. Following the transaction, the chief executive officer directly owned 81,559 shares in the company, valued at $8,548,198.79. This trade represents a 2.66% 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. Also, EVP Sara Kelly sold 2,500 shares of the business's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the transaction, the executive vice president directly owned 59,609 shares of the company's stock, valued at approximately $5,789,226.08. The trade was a 4.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 11,187 shares of company stock worth $1,111,085 over the last 90 days. 0.03% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Nordea Investment Management AB increased its position in shares of Starbucks by 3.2% in the third quarter. Nordea Investment Management AB now owns 433,112 shares of the coffee company's stock valued at $36,576,000 after acquiring an additional 13,262 shares during the last quarter. Providence Capital Advisors LLC acquired a new stake in shares of Starbucks in the third quarter valued at about $6,099,000. Allstate Corp acquired a new stake in shares of Starbucks in the third quarter valued at about $3,491,000. Vanguard Group Inc. increased its position in shares of Starbucks by 0.5% in the third quarter. Vanguard Group Inc. now owns 113,438,902 shares of the coffee company's stock valued at $9,596,931,000 after acquiring an additional 577,279 shares during the last quarter. Finally, Lantz Financial LLC increased its position in shares of Starbucks by 346.6% in the third quarter. Lantz Financial LLC now owns 17,833 shares of the coffee company's stock valued at $1,509,000 after acquiring an additional 13,840 shares during the last quarter. 72.29% of the stock is owned by institutional investors and hedge funds.

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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