Starbucks (NASDAQ:SBUX) Research Coverage Started at Stephens

Stephens began coverage on shares of Starbucks (NASDAQ:SBUX) in a report issued on Tuesday,FinViz reports. The firm issued an equal weight rating and a $39.00 price target on the coffee company’s stock.

Several other research firms have also recently issued reports on SBUX. BNP Paribas Exane lifted their price objective on Starbucks from $87.00 to $92.00 and gave the stock an “underperform” rating in a report on Thursday, July 30th. Mizuho reduced their target price on Starbucks from $115.00 to $105.00 and set a “neutral” rating for the company in a report on Friday, October 23rd. Seaport Research Partners initiated coverage on Starbucks in a report on Wednesday, September 16th. They set a “neutral” rating for the company. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $126.00 target price (up from $120.00) on shares of Starbucks in a research report on Thursday, July 30th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $115.00 price target (up from $110.00) on shares of Starbucks in a research note on Thursday, July 30th. Twenty-one investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $108.74.

Starbucks Stock Performance

Starbucks stock opened at $106.16 on Tuesday. The company’s fifty day moving average price is $99.18 and its 200 day moving average price is $99.99. Starbucks has a 1 year low of $81.76 and a 1 year high of $111.50. The stock has a market capitalization of $121.02 billion, a P/E ratio of 48.04, a P/E/G ratio of 1.81 and a beta of 1.01.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Thursday, October 29th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.08. The business had revenue of $9.14 billion for the quarter, compared to analyst estimates of $9.22 billion. Starbucks had a net margin of 6.66% and a negative return on equity of 38.61%. The company’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same quarter last year, the business earned $0.52 earnings per share. Sell-side analysts predict that Starbucks will post 3.22 EPS for the current year.

Starbucks Increases Dividend

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

Insider Transactions at Starbucks

In other 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 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 $7,092,000. This represents a 0.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 4,458 shares of company stock worth $449,684. 0.03% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SBUX. BlackRock Inc. acquired a new stake in Starbucks in the second quarter valued at approximately $8,504,509,000. Bank of America Corp DE bought a new position in shares of Starbucks during the 2nd quarter valued at $1,581,287,000. Bank of New York Mellon Corp bought a new position in shares of Starbucks during the 2nd quarter valued at $779,790,000. Legal & General Group Plc bought a new position in shares of Starbucks during the 2nd quarter valued at $649,622,000. Finally, Corient Private Wealth LP acquired a new stake in shares of Starbucks in the 2nd quarter valued at $289,019,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Deutsche Bank expressed confidence in Starbucks’ growth prospects, offering support for the company’s recovery narrative. Starbucks Shows Confidence in Growth Prospects, Deutsche Bank Says
• Positive Sentiment: The latest quarter showed adjusted momentum: EPS rose to $0.80 from $0.52 a year earlier and beat estimates. An article characterizes the results as evidence the sales slowdown may be easing, though revenue was weaker. Starbucks Served Up a 54% Earnings Jump
• Positive Sentiment: Stephens analysts’ renewed attention to SBUX adds to the recent positive analyst focus, although the report listing provides no details on the action. Starbucks Stock Picked Up by Analysts at Stephens
• Neutral Sentiment: Starbucks is promoting its holiday menu and seasonal campaign, which could help attract customers, but the coverage does not indicate its likely sales impact. Starbucks is ready for the holidays with its new seasonal menu
• Negative Sentiment: Management’s fiscal 2027 guidance calls for about a 1% consolidated revenue decline, largely reflecting the China licensing transition and a calendar effect. The shift changes how China revenue is recorded, even as the company pursues cost savings and margin improvements. Is China Licensing Shift Altering The Investment Case For Starbucks?

Starbucks Company Profile

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.