Starbucks (NASDAQ:SBUX) Upgraded by Melius Research to Hold Rating

Key Points

• Melius Research upgraded Starbucks from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $112.04.
• Starbucks exceeded quarterly expectations, reporting $0.85 in EPS versus the $0.66 estimate and $9.32 billion in revenue versus $9.17 billion expected, although revenue declined 1.4% year over year.
• Shares opened at $105.25, near their 12-month high of $109.23; institutional investors own 72.29% of the stock, while insiders sold 6,687 shares worth approximately $679,033 during the last quarter.

Starbucks (NASDAQ:SBUX - Get Free Report) was upgraded by investment analysts at Melius Research from a "sell" rating to a "hold" rating in a note issued to investors on Monday, MarketBeat reports.

SBUX has been the topic of several other research reports. BMO Capital Markets reaffirmed an "outperform" rating and set a $130.00 target price on shares of Starbucks in a report on Thursday. Piper Sandler reissued an "overweight" rating and issued a $110.00 price target on shares of Starbucks in a research note on Wednesday, April 29th. Guggenheim restated a "neutral" rating and set a $97.00 price target (up from $95.00) on shares of Starbucks in a research report on Wednesday, April 29th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Thursday. Finally, Jefferies Financial Group began coverage on Starbucks in a research note on Thursday, May 14th. They issued a "buy" rating for the company. Nineteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $112.04.

Starbucks Price Performance

Shares of SBUX stock opened at $105.25 on Monday. The business has a 50-day moving average price of $102.23 and a two-hundred day moving average price of $99.15. Starbucks has a 12-month low of $77.99 and a 12-month high of $109.23. The firm has a market cap of $119.98 billion, a P/E ratio of 60.49, a price-to-earnings-growth ratio of 1.84 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating analysts' consensus estimates of $0.66 by $0.19. The company had revenue of $9.32 billion for the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.Starbucks's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period last year, the firm posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, research analysts expect that Starbucks will post 2.6 EPS for the current fiscal year.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $104.00, for a total transaction of $231,816.00. Following the completion of the transaction, the chief executive officer owned 77,364 shares of the company's stock, valued at $8,045,856. This represents a 2.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 6,687 shares of company stock worth $679,033. 0.03% of the stock is owned by insiders.

Hedge Funds Weigh In On Starbucks

Several hedge funds have recently made changes to their positions in the business. Oak Thistle LLC bought a new stake in Starbucks during the fourth quarter worth about $1,149,000. Wealth Enhancement Trust Services Inc. bought a new stake in shares of Starbucks in the 4th quarter worth approximately $875,000. Third View Private Wealth LLC bought a new position in Starbucks during the 4th quarter valued at approximately $3,135,000. B. Metzler seel. Sohn & Co. AG raised its stake in Starbucks by 36.4% during the fourth quarter. B. Metzler seel. Sohn & Co. AG now owns 88,374 shares of the coffee company's stock valued at $7,442,000 after buying an additional 23,589 shares during the last quarter. Finally, Jefferies Financial Group Inc. grew its stake in shares of Starbucks by 94.5% in the fourth quarter. Jefferies Financial Group Inc. now owns 94,260 shares of the coffee company's stock worth $7,938,000 after acquiring an additional 45,794 shares during the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

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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