Starbucks’ (SBUX) Buy Rating Reaffirmed at BTIG Research

BTIG Research reiterated their buy rating on shares of Starbucks (NASDAQ:SBUX) in a research note issued to investors on Friday morning,Benzinga reports. They currently have a $115.00 price objective on the coffee company’s stock.

Several other research firms also recently weighed in on SBUX. Morgan Stanley downgraded Starbucks from an “overweight” rating to an “underweight” rating in a research report on Monday, August 3rd. KeyCorp restated a “sector weight” rating on shares of Starbucks in a report on Friday. Guggenheim initiated coverage on shares of Starbucks in a research note on Monday, August 3rd. They issued a “buy” rating on the stock. Argus lifted their price objective on shares of Starbucks from $112.00 to $120.00 and gave the company a “buy” rating in a report on Friday, July 31st. Finally, BMO Capital Markets reiterated an “outperform” rating on shares of Starbucks in a report on Friday. Twenty-three equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $110.53.

Starbucks Stock Performance

Shares of NASDAQ SBUX opened at $103.67 on Friday. The business’s 50 day moving average price is $99.26 and its 200-day moving average price is $99.70. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $110.51. The company has a market cap of $118.18 billion, a price-to-earnings ratio of 46.91, a PEG ratio of 1.60 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Thursday, October 29th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.08. Starbucks had a negative return on equity of 38.01% and a net margin of 6.66%. The firm had revenue of $9.14 billion during the quarter, compared to analyst estimates of $9.22 billion. During the same period last year, the company earned $0.52 EPS. Starbucks’s quarterly revenue was down 4.5% compared to the same quarter last year. Sell-side analysts predict that Starbucks will post 3.17 earnings per share for the current year.

Starbucks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be given a dividend of $0.63 per share. This is a boost from Starbucks’s previous quarterly dividend of $0.62. The ex-dividend date of this dividend is Friday, November 13th. This represents a $2.52 dividend on an annualized basis and a yield of 2.4%. Starbucks’s dividend payout ratio is presently 114.03%.

Insider Buying and Selling at Starbucks

In other Starbucks news, CEO Brady Brewer sold 588 shares of the company’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $100.00, for a total value of $58,800.00. Following the completion of the sale, the chief executive officer directly owned 70,920 shares in the company, valued at approximately $7,092,000. This represents a 0.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 6,687 shares of company stock valued at $685,935. 0.03% of the stock is currently owned by corporate insiders.

Institutional Trading of Starbucks

Several institutional investors and hedge funds have recently made changes to their positions in SBUX. Ascent Group LLC boosted its position in Starbucks by 1.0% in the third quarter. Ascent Group LLC now owns 35,469 shares of the coffee company’s stock valued at $3,333,000 after buying an additional 336 shares during the last quarter. Caldwell Trust Co increased its holdings in Starbucks by 530.1% in the 3rd quarter. Caldwell Trust Co now owns 17,900 shares of the coffee company’s stock worth $1,682,000 after buying an additional 15,059 shares during the period. 3Chopt Investment Partners LLC increased its holdings in Starbucks by 3.1% in the 3rd quarter. 3Chopt Investment Partners LLC now owns 5,950 shares of the coffee company’s stock worth $559,000 after buying an additional 179 shares during the period. Team Financial Group LLC purchased a new position in Starbucks during the 3rd quarter worth approximately $47,000. Finally, Rakuten Investment Management Inc. raised its position in Starbucks by 10.5% during the 3rd quarter. Rakuten Investment Management Inc. now owns 303,491 shares of the coffee company’s stock worth $28,962,000 after buying an additional 28,922 shares during the last quarter. 72.29% of the stock is currently owned by institutional investors.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks reported fiscal fourth-quarter adjusted EPS of $0.80, above the approximately $0.72 consensus. Adjusted operating margin expanded by roughly 450 basis points to 14% as sales leverage, cost savings and lower labor-related expenses supported profitability. Starbucks posts slight revenue miss and earnings beat
• Positive Sentiment: U.S. comparable sales increased 7.7%, ahead of management’s target, helped by higher average tickets, product mix, food attachments and improving customer traffic. Management said the turnaround is transitioning into a growth plan. Starbucks strong comps driven by ticket growth
• Positive Sentiment: Analysts remain constructive, with BTIG reaffirming a Buy rating and a $115 target, while Bank of America raised its target to $141. Starbucks also plans to test AI-powered drive-through tools, renovate more than 2,000 North American stores and add about 1,200 locations globally. Analyst raises Starbucks price target
• Neutral Sentiment: Management said Starbucks could eventually become a multibrand company and sees room for substantial international and North American expansion, but acquisitions are not currently the focus. Execution on store improvements and service remains the near-term priority. Starbucks CEO discusses future acquisitions
• Negative Sentiment: Revenue fell about 4.5% to $9.14 billion, missing estimates near $9.22 billion. The decline largely reflects Starbucks’ shift of nearly 8,000 China stores to a licensed joint venture, but international comparable sales and transactions remained weak. Starbucks international business disappoints
• Negative Sentiment: Fiscal 2027 guidance calls for roughly 4% North American comparable-sales growth, below fiscal 2026’s 6.6%, while revenue is expected to decline about 1%. Fourth-quarter ticket growth outpaced transaction growth, raising concerns that future gains may rely more on pricing and larger orders than on customer visits. Starbucks margins jump as store visits slow

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.