Starbucks (NASDAQ:SBUX) Shares Gap Up After Analyst Upgrade

Starbucks Corporation (NASDAQ:SBUX) gapped up prior to trading on Wednesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock had previously closed at $95.72, but opened at $102.30. Starbucks shares last traded at $98.0930, with a volume of 11,793,784 shares traded.

Several other research analysts have also issued reports on the company. Guggenheim reissued a “buy” rating and set a $90.00 target price on shares of Starbucks in a research report on Monday. Citigroup raised Starbucks from a “neutral” rating to a “positive” rating in a report on Thursday, January 15th. William Blair upgraded shares of Starbucks from a “market perform” rating to an “outperform” rating in a research report on Thursday, January 22nd. Wells Fargo & Company set a $110.00 price objective on Starbucks in a research note on Wednesday. Finally, New Street Research set a $90.00 target price on Starbucks in a research note on Tuesday. Nineteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $104.74.

Insiders Place Their Bets

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

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Investor Day and early-operational wins — management showcased the “Back to Starbucks” turnaround (new store designs, AI initiatives, beverage innovation) and reported revenue and comp-sales gains, evidence that traffic and transactions are improving. Starbucks Gets a Jolt After Earnings, But Will the Buzz Last?
• Positive Sentiment: Rewards relaunch to drive frequency — Starbucks announced a three-tiered Rewards program (Green, Gold, Reserve) to encourage repeat visits and personalization, which could lift transactions if adoption matches management’s plan. Starbucks Unveils Reimagined Loyalty Program to Deliver More Meaningful Value, Personalization and Engagement for Members
• Neutral Sentiment: CEO tone and public comments — Brian Niccol signaled willingness to negotiate with union organizers and discussed security and stock‑price questions in media appearances; these comments reduce headline uncertainty but leave execution and labor outcomes unresolved. Starbucks CEO says he is willing to negotiate with unionizers
• Neutral Sentiment: Growth vs. guidance — management updated long‑term targets (FY2028 EPS range) and reiterated growth levers; the guidance shows progress but contains mixed signals versus consensus, so investors are awaiting concrete margin improvements and forward execution. Starbucks CEO on Growth Plans, Pricing and China Market
• Negative Sentiment: Mixed earnings: EPS miss and margin pressure — Starbucks beat on revenue but missed EPS, and management warned margins remain pressured (higher input/labor costs). That combination helped pull back earlier post‑earnings gains and weighs on near‑term stock performance. Why Starbucks (SBUX) Shares Are Down After A Mixed Earnings Report
• Negative Sentiment: Governance/PR headwinds — a shareholder‑rights law firm announced an investigation into officers/directors, and the company removed a cap on the CEO’s private jet use citing security, both creating short‑term reputational and governance risk for the stock. Halper Sadeh LLC Encourages Starbucks Corporation Shareholders To Contact The Firm To Discuss Their Rights Starbucks removes cap on CEO’s use of company’s private jet, citing security concerns

Institutional Investors Weigh In On Starbucks

Several institutional investors and hedge funds have recently modified their holdings of SBUX. Game Plan Financial Advisors LLC purchased a new stake in shares of Starbucks during the second quarter worth $25,000. Transce3nd LLC increased its holdings in Starbucks by 270.3% during the 2nd quarter. Transce3nd LLC now owns 274 shares of the coffee company’s stock worth $25,000 after purchasing an additional 200 shares during the period. Collier Financial purchased a new stake in Starbucks during the 3rd quarter worth about $25,000. Rachor Investment Advisory Services LLC acquired a new stake in Starbucks in the 4th quarter valued at about $25,000. Finally, Y.D. More Investments Ltd purchased a new position in shares of Starbucks in the 3rd quarter valued at about $26,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Stock Down 2.1%

The stock has a 50-day moving average price of $87.96 and a 200 day moving average price of $87.17. The firm has a market capitalization of $104.56 billion, a price-to-earnings ratio of 75.99, a P/E/G ratio of 1.98 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released 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 3.63% and a negative return on equity of 28.66%. The business had revenue of $9.92 billion during the quarter, compared to analysts’ expectations of $9.62 billion. During the same quarter in the previous year, the company posted $0.69 EPS. The company’s revenue was up 5.5% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. As a group, equities analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Friday, February 13th will be issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, February 13th. Starbucks’s payout ratio is currently 151.22%.

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.