Starbucks (NASDAQ:SBUX) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Stock hits 52‑week high: Shares climbed to as high as $107.27 (last $105.50) after BNP Paribas Exane raised its price target, while multiple firms lifted targets overall and the consensus rating is a Moderate Buy with an average target of $106.93.
• Strong Q2 "beat‑and‑raise": Starbucks reported $0.50 EPS vs. $0.44 expected and $9.53B revenue vs. $9.09B, and raised FY26 guidance to $2.25–2.45, driven by ~6% global comps (U.S. ~7%) and investments in staffing and stores.
• Profitability and positioning caveats: Turnaround investments are compressing margins and some analysts remain cautious, insiders have trimmed holdings recently, and the company declared a $0.62 quarterly dividend (≈2.4% yield).

Shares of Starbucks Corporation (NASDAQ:SBUX - Get Free Report) hit a new 52-week high during trading on Thursday after BNP Paribas Exane raised their price target on the stock from $84.00 to $87.00. BNP Paribas Exane currently has an underperform rating on the stock. Starbucks traded as high as $107.27 and last traded at $105.50, with a volume of 25425149 shares. The stock had previously closed at $97.28.

A number of other equities research analysts have also commented on the stock. Piper Sandler restated an "overweight" rating and set a $110.00 price objective on shares of Starbucks in a report on Wednesday. Bank of America set a $114.00 price target on Starbucks in a research note on Wednesday, January 21st. William Blair upgraded Starbucks from a "market perform" rating to an "outperform" rating in a report on Thursday, January 22nd. Jefferies Financial Group raised Starbucks from an "underperform" rating to a "hold" rating in a research report on Tuesday. Finally, Stifel Nicolaus raised their price target on shares of Starbucks from $105.00 to $115.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $106.93.

Insider Buying and Selling at Starbucks

In related news, CEO Brady Brewer sold 1,641 shares of Starbucks stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $97.12, for a total transaction of $159,373.92. Following the completion of the sale, the chief executive officer owned 86,605 shares of the company's stock, valued at approximately $8,411,077.60. The trade was a 1.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Sara Kelly sold 2,500 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $97.12, for a total transaction of $242,800.00. Following the completion of the transaction, the executive vice president owned 59,609 shares in the company, valued at approximately $5,789,226.08. This trade represents a 4.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 6,958 shares of company stock worth $667,464. Corporate insiders own 0.03% of the company's stock.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q2 beat and outlook lift — Starbucks reported $0.50 EPS (vs. ~$0.44 consensus), $9.53B revenue, and raised FY26 EPS guidance to $2.25–2.45, giving the market a classic “beat‑and‑raise” catalyst. Starbucks Reports Q2 Fiscal Year 2026 Results
• Positive Sentiment: Traffic and comps recovery — global comps rose ~6% (U.S. comps ~7%), evidence the turnaround is driving return visits and mix improvement that can drive future margin leverage as revenue scales. Starbucks tops quarterly sales estimates as CEO's turnaround gains momentum
• Positive Sentiment: Investments in labor and stores appear to be working — management says roughly $500M of investments in staffing, scheduling and benefits helped speed service and win customers back. That supports sustainable top‑line improvement if service gains persist. Starbucks is winning customers back after investing $500 million in workers and stores
• Positive Sentiment: Wall Street is revising forecasts upward — multiple firms raised price targets and issued buy/overweight notes after the quarter, which amplifies buy-side momentum. Starbucks To Rally More Than 18%? Here Are 10 Top Analyst Forecasts For Wednesday
• Neutral Sentiment: Corporate hub spending and relocation questions — Starbucks plans a $100M Nashville hub; it's a strategic move but adds near‑term corporate spend and raises relocation/ execution noise. Starbucks CEO on new $100 million Nashville hub
• Neutral Sentiment: Competitive landscape — fast‑food rivals (e.g., McDonald’s) are pushing more drinks/options; it’s a watch item for market share and pricing power but not an immediate earnings shock. McDonald's takes aim at Starbucks with new drinks menu
• Negative Sentiment: Margins under pressure — Reuters and company commentary note that rising labor, gas and utility costs from the turnaround investments have compressed North American store margins; profit recovery may lag revenue growth. Starbucks customers are coming back. Profits haven't caught up yet.
• Negative Sentiment: Some sell‑side caution remains — BNP Paribas/other firms still express conservative views (one maintained an underperform stance with a lower price target), highlighting differing views on how quickly margins recover. Benzinga

Hedge Funds Weigh In On Starbucks

A number of large investors have recently made changes to their positions in SBUX. Collier Financial acquired a new position in Starbucks in the 3rd quarter valued at $25,000. Rachor Investment Advisory Services LLC bought a new position in Starbucks during the 4th quarter worth $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks during the fourth quarter worth $25,000. Phillip James Consulting Co. bought a new stake in shares of Starbucks in the fourth quarter valued at about $25,000. Finally, Y.D. More Investments Ltd bought a new stake in shares of Starbucks in the third quarter valued at about $26,000. Institutional investors own 72.29% of the company's stock.

Starbucks Stock Up 8.4%

The firm has a market capitalization of $120.20 billion, a price-to-earnings ratio of 87.19, a P/E/G ratio of 2.08 and a beta of 0.95. The company's 50 day moving average is $96.34 and its 200 day moving average is $90.85.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.06. The business had revenue of $9.53 billion during the quarter, compared to analysts' expectations of $9.09 billion. Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. The business's revenue was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, analysts expect that Starbucks Corporation will post 2.31 EPS for the current year.

Starbucks Dividend Announcement

The firm 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 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, May 15th. Starbucks's 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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