Starbucks (NASDAQ:SBUX) Sets New 12-Month High - Still a Buy?

Key Points

• Reached a new 52‑week high (~$107.55) after Q2 results that beat expectations (EPS $0.50 vs. $0.44, revenue $9.53B vs. $9.17B), with same‑store sales up ~6.2% and FY‑26 EPS guidance raised to 2.25–2.45.
• Wall Street sentiment is broadly positive (consensus "Moderate Buy" with an average price target of $107), but the stock trades at a rich valuation (PE ~80.6), prompting analyst caution about sustainability of the rally.
• Operational and governance signals pose risks—employee complaints over a new $1,200 bonus threshold and customer service "cup note" issues—while the company declared a quarterly dividend of $0.62 (2.3% yield) and insiders have sold shares recently.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) reached a new 52-week high during trading on Wednesday . The stock traded as high as $107.55 and last traded at $107.3990, with a volume of 4750942 shares traded. The stock had previously closed at $104.94.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q2 takeaways show improving traffic and execution that support the "turnaround" thesis—investors treated the results as confirmation the recovery is working. Is the Starbucks Turnaround Working? Key Takeaways From Q2 Results
• Positive Sentiment: Market reaction highlighted a strong after‑hours move after mixed Q2 results but a higher FY‑26 EPS guide (2.25–2.45), signaling management confidence that helped lift the stock. Why Starbucks (SBUX) Is Up 8.2% After Mixed Q2 Results And Higher Earnings Guidance
• Positive Sentiment: Same‑store sales jumped ~6.2%, ending a multi‑quarter decline and reinforcing that in‑store demand is recovering under Niccol’s strategy. Brian Niccol Earned the ‘Retail Messi’ Nickname: Starbucks Same-Store Sales Jump 6.2% After 7 Quarters of Decline
• Neutral Sentiment: Analysts and commentary note clear improvements but advise caution: the beat/guidance is constructive, yet questions remain about sustainability and whether current momentum justifies today’s valuation. Starbucks Stages a Major Comeback. But Does That Mean You Should Buy It Now? Not So Fast.
• Neutral Sentiment: SBUX is drawing high investor attention and searches—useful signal for liquidity/interest but not a directional fundamental indicator by itself. Investors Heavily Search Starbucks Corporation (SBUX): Here is What You Need to Know
• Negative Sentiment: Front‑line employees say a new $1,200 bonus plan has unrealistic thresholds amid staffing shortages—risking morale, execution and service if staffing pressures persist. Starbucks baristas tell us why the new $1,200 bonus is impossible to get
• Negative Sentiment: Customer "cup note" complaints and commentary describe service/experience issues—signals that operational execution and brand perception still need work despite sales improvements. “They Read Like a Cry for Help”, Starbucks Stock NASDAQ: SBUX Notches Up Despite Cup Note Concerns

Wall Street Analyst Weigh In

A number of analysts have recently commented on SBUX shares. Stifel Nicolaus set a $117.00 price target on shares of Starbucks and gave the stock a "buy" rating in a research note on Wednesday. Sanford C. Bernstein restated an "outperform" rating on shares of Starbucks in a research report on Wednesday, March 4th. DA Davidson lifted their target price on shares of Starbucks from $97.00 to $102.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. UBS Group reaffirmed a "neutral" rating and issued a $105.00 target price (up from $100.00) on shares of Starbucks in a research report on Wednesday, April 29th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and issued a $120.00 target price on shares of Starbucks in a research report on Friday, January 30th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $107.00.

Starbucks Price Performance

The firm has a market capitalization of $121.27 billion, a PE ratio of 80.64, a PEG ratio of 2.13 and a beta of 1.01. The firm has a 50-day simple moving average of $96.68 and a 200-day simple moving average of $91.25.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its 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. The business had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business's revenue for the quarter was up 8.8% on a year-over-year basis. During the same period last year, the firm posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Equities analysts expect that Starbucks Corporation will post 2.4 earnings per share for the current year.

Starbucks Announces Dividend

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

Insider Activity

In other news, EVP Sara Kelly sold 2,500 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $242,800.00. Following the transaction, the executive vice president owned 59,609 shares of the company's stock, valued at $5,789,226.08. This trade represents a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Brady Brewer sold 1,641 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $159,373.92. Following the completion of the transaction, the chief executive officer directly owned 86,605 shares in the company, valued at $8,411,077.60. This trade represents a 1.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,958 shares of company stock worth $877,464 in the last ninety days. Corporate insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of Starbucks by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company's stock worth $9,634,523,000 after buying an additional 971,773 shares during the period. Capital Research Global Investors grew its position in Starbucks by 11.4% during the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company's stock worth $7,229,968,000 after purchasing an additional 8,774,198 shares during the last quarter. Capital World Investors increased its stake in Starbucks by 9.0% during the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after purchasing an additional 7,007,268 shares in the last quarter. State Street Corp raised its holdings in shares of Starbucks by 0.7% in the fourth quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock worth $4,031,053,000 after buying an additional 327,161 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in shares of Starbucks by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock worth $2,212,153,000 after buying an additional 225,168 shares during the period. Institutional investors own 72.29% of the company's stock.

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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