Starbucks Corporation (NASDAQ:SBUX) Receives Consensus Rating of “Moderate Buy” from Analysts

Starbucks Corporation (NASDAQ:SBUX) has been given a consensus recommendation of “Moderate Buy” by the thirty-one brokerages that are currently covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and nineteen have issued a buy rating on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $108.9231.

A number of equities analysts have recently commented on the company. Citizens Jmp began coverage on Starbucks in a report on Monday, March 30th. They set an “underperform” rating and a $84.00 price target for the company. Stephens assumed coverage on Starbucks in a research report on Thursday, May 14th. They set an “overweight” rating for the company. BTIG Research lowered Starbucks from a “buy” rating to a “neutral” rating in a research note on Thursday, May 14th. Citigroup lifted their target price on Starbucks from $99.00 to $101.00 and gave the company a “neutral” rating in a research report on Wednesday, April 29th. Finally, Dbs Bank raised Starbucks from a “strong sell” rating to a “moderate sell” rating in a research note on Friday, March 20th.

Insider Buying and Selling

In other Starbucks news, EVP Sara Kelly sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total value of $210,000.00. Following the sale, the executive vice president owned 57,653 shares in the company, valued at $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 8,687 shares of company stock valued at $863,707. 0.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Starbucks

Hedge funds have recently modified their holdings of the company. Norges Bank bought a new stake in Starbucks during the 4th quarter worth $1,232,650,000. Capital Research Global Investors raised its position in Starbucks by 11.4% in the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock valued at $7,229,968,000 after purchasing an additional 8,774,198 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its stake in shares of Starbucks by 65.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock valued at $1,637,704,000 after purchasing an additional 7,725,547 shares in the last quarter. Capital World Investors boosted its stake in shares of Starbucks by 9.0% during the fourth 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. Finally, Corient Private Wealth LLC grew its holdings in shares of Starbucks by 146.6% during the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock worth $553,201,000 after purchasing an additional 3,596,014 shares during the last quarter. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Price Performance

Shares of NASDAQ:SBUX opened at $104.27 on Friday. Starbucks has a 1 year low of $77.99 and a 1 year high of $108.88. The stock has a market capitalization of $118.84 billion, a price-to-earnings ratio of 78.99, a price-to-earnings-growth ratio of 2.07 and a beta of 0.98. The company’s 50 day simple moving average is $101.97 and its 200 day simple moving average is $96.45.

Starbucks (NASDAQ:SBUX) last released its earnings results 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 firm had revenue of $9.53 billion during 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 company’s quarterly revenue was up 8.8% on a year-over-year basis. During the same period in the prior year, the company earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, analysts anticipate that Starbucks will post 2.4 EPS for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. Starbucks’s payout ratio is 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.