Starbucks (NASDAQ:SBUX) Rating Increased to Hold at Zacks Research

Starbucks (NASDAQ:SBUX) was upgraded by equities research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other equities analysts also recently commented on SBUX. Susquehanna set a $114.00 price target on Starbucks in a report on Wednesday, January 21st. Barclays reiterated an “overweight” rating and issued a $110.00 target price (up from $95.00) on shares of Starbucks in a research note on Wednesday, January 7th. Sanford C. Bernstein reissued an “outperform” rating on shares of Starbucks in a research report on Monday. BMO Capital Markets restated an “outperform” rating on shares of Starbucks in a report on Thursday, October 30th. Finally, Wall Street Zen upgraded Starbucks from a “sell” rating to a “hold” rating in a research note on Saturday, November 22nd. Eighteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Starbucks presently has an average rating of “Moderate Buy” and a consensus price target of $103.50.

Starbucks Price Performance

NASDAQ SBUX opened at $95.16 on Tuesday. Starbucks has a fifty-two week low of $75.50 and a fifty-two week high of $117.46. The stock’s 50-day moving average is $87.73 and its two-hundred day moving average is $87.12. The firm has a market cap of $108.21 billion, a P/E ratio of 58.02, a price-to-earnings-growth ratio of 1.94 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Wednesday, January 28th. The coffee company reported $0.56 EPS for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.03). Starbucks had a net margin of 4.99% and a negative return on equity of 31.32%. The company had revenue of $9.92 billion for the quarter, compared to analyst estimates of $9.62 billion. During the same period in the prior year, the company posted $0.69 EPS. The business’s revenue was up 5.5% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. On average, equities analysts expect that Starbucks will post 2.99 EPS for the current year.

Insider Buying and Selling at Starbucks

In other news, Director Jorgen Vig Knudstorp bought 11,700 shares of the firm’s stock in a transaction that occurred on Monday, November 10th. The shares were acquired at an average cost of $85.00 per share, with a total value of $994,500.00. Following the completion of the transaction, the director directly owned 53,096 shares in the company, valued at $4,513,160. This represents a 28.26% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.09% of the company’s stock.

Institutional Trading of Starbucks

Several hedge funds have recently modified their holdings of SBUX. Norges Bank acquired a new stake in Starbucks during the 2nd quarter valued at $1,246,316,000. Capital Research Global Investors lifted 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 valued at $7,229,968,000 after purchasing an additional 8,774,198 shares during the period. Corient Private Wealth LLC boosted its stake in shares of Starbucks by 146.6% in the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock valued at $553,201,000 after purchasing an additional 3,596,014 shares during the last quarter. Capital International Investors boosted its stake in shares of Starbucks by 22.5% in the 3rd quarter. Capital International Investors now owns 14,691,772 shares of the coffee company’s stock valued at $1,243,104,000 after purchasing an additional 2,699,479 shares during the last quarter. Finally, Ameriprise Financial Inc. grew its position in shares of Starbucks by 80.6% during the 3rd quarter. Ameriprise Financial Inc. now owns 5,105,164 shares of the coffee company’s stock worth $433,923,000 after buying an additional 2,277,792 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q1 top‑line beat and comps rebound — Revenue of $9.92B topped estimates and global comparable‑store sales rose ~4%, including the first U.S. transaction growth in two years, evidence the “Back to Starbucks” initiatives are driving traffic. Starbucks Reports Q1 Fiscal Year 2026 Results
• Positive Sentiment: Digital and operations momentum — Management emphasized digital platforms and technology fixes (mobile order flow, staffing mixes, AI tools) as central to sustaining the turnaround and improving throughput/transactions. This supports revenue durability if execution continues. Starbucks Says Digital Platforms Are Key Piece of Turnaround Strategy
• Positive Sentiment: Investor day as a near‑term catalyst — Starbucks is hosting an investor day to lay out a long‑term outlook and milestones for the turnaround; that presentation could provide fresh guidance or visibility that moves the stock. Starbucks to unveil long-term outlook at investor day, as Niccol says turnaround is just beginning
• Neutral Sentiment: Guidance and valuation nuance — FY‑2026 EPS guide (2.15–2.40) leaves room vs. consensus and analysts are split; some raised targets (e.g., Mizuho), others warn margins could lag while investments run. The range creates more catalyst dependence on execution. Mizuho Boosts Starbucks (NASDAQ:SBUX) Price Target to $95.00
• Negative Sentiment: EPS miss and margin pressure — EPS of $0.56 missed estimates while net margin remains under pressure as the company re‑invests in stores and staffing; investors should watch margin progression vs. revenue gains. Starbucks (SBUX) Misses Q1 Earnings Estimates
• Negative Sentiment: Governance/optics risks — The company removed the $250k cap on CEO Niccol’s personal use of the corporate jet (cited for security) and a shareholder‑law firm launched a probe into director conduct; both create short‑term reputational and potential legal noise. Starbucks removes cap on CEO’s use of company’s private jet, citing security concerns Legal Investigation Launched: Johnson Fistel Scrutinizes Starbucks (SBUX) Directors

About Starbucks

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.