Starbucks (NASDAQ:SBUX) Given Neutral Rating at DA Davidson

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating reaffirmed by equities researchers at DA Davidson in a report issued on Friday, Benzinga reports. They currently have a $110.00 target price on the coffee company’s stock. DA Davidson‘s target price indicates a potential upside of 5.00% from the company’s current price.

A number of other research firms have also recently commented on SBUX. Morgan Stanley cut shares of Starbucks from an “overweight” rating to an “underweight” rating in a research note on Monday, August 3rd. BMO Capital Markets reaffirmed an “outperform” rating on shares of Starbucks in a research note on Friday. Melius Research set a $110.00 price objective on Starbucks in a report on Monday, August 3rd. Compass Point initiated coverage on shares of Starbucks in a report on Monday, August 3rd. They issued a “buy” rating for the company. Finally, Raymond James Financial reissued an “outperform” rating on shares of Starbucks in a research note on Friday, October 9th. Twenty-three equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $110.53.

Starbucks Price Performance

NASDAQ:SBUX traded down $0.75 during trading hours on Friday, hitting $104.76. The stock had a trading volume of 9,054,310 shares, compared to its average volume of 8,119,042. Starbucks has a one year low of $77.99 and a one year high of $110.51. The firm has a market capitalization of $119.42 billion, a price-to-earnings ratio of 60.22, a P/E/G ratio of 1.57 and a beta of 0.98. The company has a 50 day simple moving average of $99.26 and a two-hundred day simple moving average of $99.63.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, October 29th. The coffee company reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.08. The firm had revenue of $9.14 billion for the quarter, compared to analysts’ expectations of $9.22 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%. The company’s revenue was down 4.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.52 EPS. Equities research analysts anticipate that Starbucks will post 2.64 earnings per share for the current year.

Insiders Place Their Bets

In other Starbucks news, CEO Brady Brewer sold 588 shares of the company’s stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $100.00, for a total transaction of $58,800.00. Following the transaction, the chief executive officer owned 70,920 shares in the company, valued at approximately $7,092,000. This represents a 0.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 6,687 shares of company stock worth $685,935. Insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Starbucks

A number of institutional investors have recently added to or reduced their stakes in SBUX. Robinhood Asset Management LLC bought a new position in Starbucks in the 2nd quarter worth approximately $10,187,000. Nykredit A S bought a new position in shares of Starbucks during the 2nd quarter valued at approximately $29,524,000. The Manufacturers Life Insurance Company purchased a new position in shares of Starbucks in the second quarter valued at $61,404,000. Bank of America Corp DE bought a new stake in Starbucks in the second quarter worth $1,581,287,000. Finally, Saudi Central Bank raised its stake in Starbucks by 90.0% during the second quarter. Saudi Central Bank now owns 79,751 shares of the coffee company’s stock valued at $8,150,000 after purchasing an additional 37,779 shares in the last quarter. Institutional investors own 72.29% of the company’s stock.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks reported adjusted earnings of $0.80 per share, above the roughly $0.72 consensus estimate and up 54% year over year. Adjusted operating margin expanded by approximately 450 basis points to 14%, supported by sales leverage, cost savings and easier comparisons. Starbucks Q4 Earnings Beat Estimates
• Positive Sentiment: Demand improved in the core U.S. business: global comparable sales rose 7.2%, while U.S. comparable sales increased 7.7%. Higher average ticket, food additions, product mix and stronger merchandise sales contributed, including continued momentum in matcha and cold beverages. Starbucks’ strong comps driven by ticket growth
• Positive Sentiment: CEO Brian Niccol said the “Back to Starbucks” turnaround is becoming a growth plan and is ahead of schedule. Management sees room for substantial international expansion, approximately 1,200 net new stores in fiscal 2027, more than 2,000 North American store upgrades and the resumption of share repurchases. BTIG reaffirmed its Buy rating with a $115 target, while Bank of America raised its target to $141. Analyst Maintains Buy on Starbucks
• Neutral Sentiment: The reported 4.5% revenue decline to $9.14 billion was largely caused by Starbucks’ restructuring of its China retail operations into a licensed joint venture. That transition reduces reported sales but shifts the business toward royalties and product revenue; North American revenue grew approximately 6%.
• Negative Sentiment: Revenue missed expectations of about $9.22 billion, international comparable transactions declined, and fiscal 2027 North American comparable-sales guidance of roughly 4% implies slower growth. Fourth-quarter U.S. transaction growth was 2.4%, versus 5.2% average-ticket growth, raising questions about whether future gains will rely too heavily on pricing and larger orders. Starbucks international business disappoints but U.S. stores outperform

About Starbucks

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.