Zacks Research Analysts Lower Earnings Estimates for Starbucks Co. (NASDAQ:SBUX)

Starbucks Co. (NASDAQ:SBUX) – Stock analysts at Zacks Research reduced their Q1 2025 earnings per share estimates for shares of Starbucks in a report issued on Tuesday, May 21st. Zacks Research analyst H. Ray now anticipates that the coffee company will post earnings of $0.95 per share for the quarter, down from their previous estimate of $1.05. The consensus estimate for Starbucks’ current full-year earnings is $3.63 per share. Zacks Research also issued estimates for Starbucks’ Q3 2025 earnings at $1.05 EPS.

SBUX has been the topic of several other research reports. Royal Bank of Canada reiterated a “sector perform” rating and set a $102.00 target price on shares of Starbucks in a research report on Wednesday, January 31st. TD Cowen lowered their price target on Starbucks from $100.00 to $85.00 and set a “hold” rating on the stock in a report on Wednesday, May 1st. Wells Fargo & Company lowered their price target on Starbucks from $105.00 to $90.00 and set an “overweight” rating on the stock in a report on Wednesday, May 1st. BTIG Research lowered their price target on Starbucks from $115.00 to $100.00 and set a “buy” rating on the stock in a report on Wednesday, May 1st. Finally, Morgan Stanley lowered their price target on Starbucks from $120.00 to $115.00 and set an “overweight” rating on the stock in a report on Friday, April 12th. Seventeen analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $96.43.

Starbucks Trading Up 3.9 %

NASDAQ SBUX opened at $80.72 on Wednesday. The business’s 50 day moving average is $84.58 and its two-hundred day moving average is $92.14. Starbucks has a 12-month low of $71.80 and a 12-month high of $107.66. The stock has a market capitalization of $91.43 billion, a price-to-earnings ratio of 22.24, a PEG ratio of 1.67 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 EPS for the quarter, missing the consensus estimate of $0.79 by ($0.11). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The company had revenue of $8.56 billion for the quarter, compared to analysts’ expectations of $9.12 billion. During the same period in the prior year, the company earned $0.74 earnings per share. The firm’s revenue was down 1.8% on a year-over-year basis.

Institutional Trading of Starbucks

Several large investors have recently added to or reduced their stakes in the stock. Willow Creek Wealth Management Inc. increased its holdings in Starbucks by 3.0% in the 3rd quarter. Willow Creek Wealth Management Inc. now owns 3,305 shares of the coffee company’s stock valued at $302,000 after purchasing an additional 97 shares in the last quarter. Charles Schwab Investment Advisory Inc. grew its stake in shares of Starbucks by 4.6% during the third quarter. Charles Schwab Investment Advisory Inc. now owns 2,260 shares of the coffee company’s stock valued at $206,000 after acquiring an additional 100 shares in the last quarter. Herold Advisors Inc. grew its stake in shares of Starbucks by 4.3% during the third quarter. Herold Advisors Inc. now owns 2,422 shares of the coffee company’s stock valued at $221,000 after acquiring an additional 100 shares in the last quarter. Rodgers Brothers Inc. grew its stake in shares of Starbucks by 1.2% during the third quarter. Rodgers Brothers Inc. now owns 8,269 shares of the coffee company’s stock valued at $755,000 after acquiring an additional 100 shares in the last quarter. Finally, First National Trust Co grew its stake in shares of Starbucks by 2.2% during the fourth quarter. First National Trust Co now owns 5,033 shares of the coffee company’s stock valued at $483,000 after acquiring an additional 106 shares in the last quarter. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction on Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the completion of the sale, the chief executive officer now directly owns 81,199 shares in the company, valued at approximately $6,933,582.61. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In the last ninety days, insiders have sold 3,750 shares of company stock valued at $322,675. 1.98% of the stock is currently owned by company insiders.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 17th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 2.82%. The ex-dividend date of this dividend is Thursday, May 16th. Starbucks’s dividend payout ratio (DPR) is currently 62.81%.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.