Starbucks Corporation (NASDAQ:SBUX) Receives $107.48 Average Price Target from Analysts

Starbucks Corporation (NASDAQ:SBUX) has been given an average rating of “Moderate Buy” by the thirty-three analysts that are currently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, twenty have issued a buy rating and one has given a strong buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $107.4828.

A number of research firms have recently issued reports on SBUX. BNP Paribas Exane began coverage on shares of Starbucks in a report on Thursday, May 14th. They issued an “underperform” rating on the stock. Morgan Stanley upgraded shares of Starbucks from an “overweight” rating to an “overweight” rating in a report on Thursday, May 14th. Robert W. Baird lifted their price objective on shares of Starbucks from $112.00 to $117.00 and gave the company an “outperform” rating in a report on Wednesday, April 29th. New Street Research set a $90.00 price objective on shares of Starbucks in a report on Tuesday, January 27th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Starbucks from $95.00 to $100.00 and gave the stock an “overweight” rating in a report on Friday, April 24th.

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction 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 transaction, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,500 shares of the business’s stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $242,800.00. Following the transaction, the executive vice president owned 59,609 shares in the company, valued at approximately $5,789,226.08. The trade was a 4.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 11,187 shares of company stock worth $1,111,085. 0.03% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Starbucks

A number of institutional investors have recently added to or reduced their stakes in the company. Wellington Grp LLC increased its holdings in Starbucks by 61.2% during the first quarter. Wellington Grp LLC now owns 5,892 shares of the coffee company’s stock worth $528,000 after buying an additional 2,237 shares during the last quarter. Vestor Capital LLC increased its holdings in Starbucks by 67.6% during the first quarter. Vestor Capital LLC now owns 1,322 shares of the coffee company’s stock worth $118,000 after buying an additional 533 shares during the last quarter. Hobbs Group Advisors LLC increased its holdings in Starbucks by 117.3% during the first quarter. Hobbs Group Advisors LLC now owns 6,426 shares of the coffee company’s stock worth $576,000 after buying an additional 3,469 shares during the last quarter. FinArc Investments Inc. acquired a new position in Starbucks during the first quarter worth $1,872,000. Finally, TrueWealth Financial Partners acquired a new position in Starbucks during the first quarter worth $318,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Stock Down 1.0%

NASDAQ SBUX opened at $103.11 on Friday. Starbucks has a 12-month low of $77.99 and a 12-month high of $108.88. The company has a market capitalization of $117.51 billion, a PE ratio of 78.11, a price-to-earnings-growth ratio of 2.10 and a beta of 1.01. The firm’s 50 day moving average is $98.65 and its 200-day moving average is $93.10.

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

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be issued a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, May 15th. Starbucks’s payout ratio is presently 187.88%.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Negative Sentiment: Starbucks abandoned its AI inventory tool after finding counting errors and mislabeled items, suggesting a setback in its technology rollout and potential operational inefficiency. Starbucks scraps AI inventory tool after nine months
• Negative Sentiment: Reuters-based reports say the company paused the tool after workers reported stocking problems, reinforcing concerns that the AI system was not ready for broad use. Starbucks scraps AI inventory tool across North America: Reuters
• Neutral Sentiment: Starbucks also announced it will participate in the Bernstein 42nd Annual Strategic Decisions Conference next week, giving management another opportunity to address the turnaround, cost cuts, and operating changes. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Neutral Sentiment: The company’s latest China joint-venture restructuring is also shifting revenue recognition and improving margins, but that news is more of a longer-term financial reset than a direct same-day stock driver. Starbucks’ China JV Shift Reshapes Revenue and Margin Outlook

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.