Zacks Research Downgrades Starbucks (NASDAQ:SBUX) to Strong Sell

Starbucks (NASDAQ:SBUX) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday, Marketbeat Ratings reports.

Other analysts have also recently issued research reports about the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Starbucks in a report on Monday. Piper Sandler lowered their target price on shares of Starbucks from $105.00 to $100.00 and set an “overweight” rating for the company in a research note on Thursday, October 30th. Wells Fargo & Company set a $100.00 target price on Starbucks and gave the company an “overweight” rating in a report on Thursday, October 16th. Barclays cut their price target on Starbucks from $115.00 to $95.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 22nd. Finally, Dbs Bank cut Starbucks from a “hold” rating to a “strong sell” rating in a research report on Friday, November 7th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $101.44.

Starbucks Trading Down 0.4%

Shares of NASDAQ:SBUX opened at $85.25 on Monday. The company has a market capitalization 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 business has a 50-day moving average price of $84.84 and a 200 day moving average price of $87.40.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Wednesday, October 29th. The coffee company reported $0.52 earnings per share for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). The company had revenue of $9.57 billion for the quarter, compared to analyst estimates of $9.41 billion. Starbucks had a net margin of 4.99% and a negative return on equity of 31.32%. Starbucks’s revenue was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.80 earnings per share. As a group, equities research analysts predict that Starbucks will post 2.99 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Jorgen Vig Knudstorp bought 11,700 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were acquired at an average price of $85.00 per share, for a total transaction of $994,500.00. Following the completion of the transaction, the director owned 53,096 shares of the company’s stock, valued at approximately $4,513,160. This trade represents a 28.26% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.09% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Large investors have recently modified their holdings of the company. PUREfi Wealth LLC acquired a new stake in shares of Starbucks in the second quarter worth approximately $286,000. Narwhal Capital Management raised its stake in Starbucks by 39.6% during the second quarter. Narwhal Capital Management now owns 32,738 shares of the coffee company’s stock worth $3,000,000 after purchasing an additional 9,282 shares during the period. Morningstar Investment Management LLC acquired a new position in shares of Starbucks in the 2nd quarter valued at $653,000. Pegasus Asset Management Inc. purchased a new stake in shares of Starbucks during the 2nd quarter valued at $1,289,000. Finally, Conning Inc. increased its holdings in shares of Starbucks by 22.3% during the 2nd quarter. Conning Inc. now owns 386,106 shares of the coffee company’s stock worth $35,379,000 after buying an additional 70,468 shares during the last quarter. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks News Roundup

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

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.