Starbucks (NASDAQ:SBUX) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research lowered shares of Starbucks (NASDAQ:SBUX) from a hold rating to a strong sell rating in a report issued on Monday, MarketBeat.com reports.

A number of other equities analysts have also recently issued reports on the stock. TD Cowen reaffirmed a “hold” rating and issued a $84.00 price objective on shares of Starbucks in a research note on Monday, December 1st. Citigroup reduced their price target on Starbucks from $84.00 to $83.00 and set a “neutral” rating on the stock in a research report on Thursday, October 30th. Wells Fargo & Company set a $100.00 price objective on Starbucks and gave the company an “overweight” rating in a report on Thursday, October 16th. UBS Group set a $94.00 target price on Starbucks and gave the company a “neutral” rating in a research note on Tuesday, October 21st. Finally, Piper Sandler decreased their target price on Starbucks from $105.00 to $100.00 and set an “overweight” rating for the company in a research report on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $101.44.

Starbucks Stock Down 0.4%

Shares of SBUX stock opened at $85.25 on Monday. The firm has a market cap of $96.94 billion, a price-to-earnings ratio of 51.98, a PEG ratio of 1.78 and a beta of 0.98. Starbucks has a 12 month low of $75.50 and a 12 month high of $117.46. The stock has a 50-day moving average price of $84.84 and a 200 day moving average price of $87.40.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Wednesday, October 29th. The coffee company reported $0.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.55 by ($0.03). Starbucks had a net margin of 4.99% and a negative return on equity of 31.32%. The business had revenue of $9.57 billion during the quarter, compared to the consensus estimate of $9.41 billion. During the same period last year, the business posted $0.80 EPS. The firm’s revenue for the quarter was up 5.5% compared to the same quarter last year. Sell-side analysts predict that Starbucks will post 2.99 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be given a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, February 13th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.9%. Starbucks’s dividend payout ratio (DPR) is currently 151.22%.

Insider Buying and Selling at Starbucks

In other Starbucks news, Director Jorgen Vig Knudstorp acquired 11,700 shares of the firm’s stock in a transaction that occurred on Monday, November 10th. The stock was acquired at an average cost of $85.00 per share, for a total transaction of $994,500.00. Following the transaction, the director owned 53,096 shares of the company’s stock, valued at $4,513,160. This trade represents a 28.26% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.09% of the stock is owned by company insiders.

Institutional Trading of Starbucks

Several hedge funds have recently bought and sold shares of SBUX. Game Plan Financial Advisors LLC bought a new stake in shares of Starbucks during the second quarter worth $25,000. Transce3nd LLC boosted its stake in Starbucks by 270.3% in 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. Chelsea Counsel Co. acquired a new position in Starbucks in the 2nd quarter worth $26,000. CBIZ Investment Advisory Services LLC increased its holdings in Starbucks by 125.2% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 286 shares of the coffee company’s stock worth $28,000 after purchasing an additional 159 shares in the last quarter. Finally, Collier Financial acquired a new stake in shares of Starbucks in the 3rd quarter valued at about $25,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: CEO Brian Niccol says Reddit feedback shows early signs of a service‑culture turnaround, supporting the narrative that operational fixes are beginning to stick. Starbucks CEO Brian Niccol Points To Reddit Feedback As Proof Of Service Culture Revival
• Positive Sentiment: Company is focusing U.S. store footprint on profitability and customer experience—closing underperforming locations now but planning targeted openings and remodels in 2026, which could improve margins over time. Starbucks trims its US store base…
• Positive Sentiment: Reports say Starbucks will add and remodel stores after closing about 400 U.S. locations this year—management shifting capex toward higher‑return sites. Starbucks Plans to Add and Remodel Stores After Closing 400 This Year
• Positive Sentiment: Coverage argues Starbucks is faring better vs. unionization efforts, which could reduce labor disruption risk and margin pressure if sustained. Starbucks Winning Battle Against Labor
• Neutral Sentiment: New tie‑ups and marketing efforts—like a MrBeast partnership—are getting attention but produced only modest share reactions so far; could help engagement but not an immediate earnings driver. Starbucks Stock Slips Slightly With New MrBeast Partnership
• Neutral Sentiment: Options‑market “whale” activity was flagged by outlets—interesting for short‑term flows but not a clear directional signal on fundamentals. Check Out What Whales Are Doing With SBUX
• Neutral Sentiment: Profile pieces on CEO vision (e.g., aiming for a friendlier, “Friends”-style coffeehouse vibe) reinforce brand repositioning but are execution stories rather than immediate catalysts. Brian Niccol said he wants Starbucks to feel like the coffee shop from ‘Friends’
• Negative Sentiment: Zacks Research downgraded SBUX from “hold” to “strong sell,” a direct negative to sentiment that can pressure the stock and trigger selling by some funds. Zacks.com
• Negative Sentiment: Technical analysts warn SBUX has repeatedly failed breakouts, suggesting near‑term downside risk for traders trying to pick a bottom. SBUX Stock Analysis: Why Starbucks Keeps Failing Breakouts

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.