Starbucks Corporation (NASDAQ:SBUX) Given Consensus Recommendation of “Moderate Buy” by Analysts

Shares of Starbucks Corporation (NASDAQ:SBUX) have earned an average rating of “Moderate Buy” from the thirty-three research firms that are presently covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, ten have given a hold recommendation, twenty have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $107.9286.

Several equities research analysts recently issued reports on SBUX shares. BTIG Research cut shares of Starbucks from a “buy” rating to a “neutral” rating in a research report on Thursday, May 14th. Weiss Ratings reissued a “hold (c)” rating on shares of Starbucks in a research report on Wednesday, April 22nd. JPMorgan Chase & Co. raised their target price on shares of Starbucks from $95.00 to $100.00 and gave the stock an “overweight” rating in a research report on Friday, April 24th. DA Davidson raised their target price on shares of Starbucks from $97.00 to $102.00 and gave the stock a “neutral” rating in a research report on Wednesday, April 29th. Finally, Tigress Financial assumed coverage on shares of Starbucks in a report on Wednesday, April 15th. They issued a “buy” rating and a $122.00 price target on the stock.

Insider Activity at Starbucks

In other news, EVP Sara Kelly sold 2,000 shares of Starbucks stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total transaction 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer owned 81,559 shares in the company, valued at $8,548,198.79. This represents a 2.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,099 shares of company stock worth $804,907 in the last 90 days. 0.03% of the stock is currently owned by insiders.

Institutional Trading of Starbucks

Hedge funds have recently made changes to their positions in the stock. Rachor Investment Advisory Services LLC acquired a new stake in shares of Starbucks during the fourth quarter worth approximately $25,000. Phillip James Consulting Co. acquired a new stake in shares of Starbucks during the fourth quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks during the fourth quarter worth approximately $25,000. Y.D. More Investments Ltd acquired a new stake in shares of Starbucks during the third quarter worth approximately $26,000. Finally, Entrust Financial LLC acquired a new stake in shares of Starbucks during the fourth quarter worth approximately $26,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Reports say Tata Starbucks plans to add as many as 100 stores per year in India, signaling continued international expansion and another avenue for long-term unit growth. Tata Starbucks to add up to 100 stores annually in India – report
• Positive Sentiment: Starbucks is reportedly evaluating sale and IPO options for its Japan operations, which could unlock value, simplify the business, and provide capital for other priorities. Starbucks Evaluates Sale and IPO Options for Japanese Operations (SBUX)
• Positive Sentiment: Investor and trader interest appears to be rising, with unusual call-option activity and multiple “trending stock” articles suggesting renewed bullish attention on SBUX. Is Trending Stock Starbucks Corporation (SBUX) a Buy Now?
• Neutral Sentiment: Several articles are analyst-style commentary asking whether Starbucks is a good buy now; these reinforce attention on the name but do not add new fundamental information. Is Starbucks Corporation (SBUX) A Good Stock To Buy Now?
• Neutral Sentiment: The Bearista cup promotion tied to the World Cup may help merchandise buzz and traffic, but it is a smaller, less material catalyst than the Japan and India expansion news. The Bearista Cup Returns for the World Cup, Starbucks Stock (NASDAQ:SBUX) Gains

Starbucks Stock Performance

Shares of SBUX opened at $103.04 on Wednesday. The company has a market capitalization of $117.43 billion, a price-to-earnings ratio of 78.06, a PEG ratio of 2.03 and a beta of 0.98. The company’s 50 day simple moving average is $100.27 and its 200 day simple moving average is $94.72. Starbucks has a 1 year low of $77.99 and a 1 year high of $108.88.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business had revenue of $9.53 billion for the quarter, compared to analysts’ expectations of $9.17 billion. During the same period last year, the company earned $0.41 earnings per share. The company’s quarterly revenue was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Equities analysts expect that Starbucks will post 2.42 EPS for the current fiscal year.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were issued a $0.62 dividend. The ex-dividend date was Friday, May 15th. This represents a $2.48 annualized dividend and a yield of 2.4%. Starbucks’s dividend payout ratio (DPR) is presently 187.88%.

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.