Starbucks’ (SBUX) Neutral Rating Reiterated at DA Davidson

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating restated by equities research analysts at DA Davidson in a research report issued on Friday, Benzinga reports. They currently have a $110.00 price objective on the coffee company’s stock. DA Davidson’s price objective indicates a potential upside of 20.46% from the company’s current price.

Several other research firms have also recently commented on SBUX. Zacks Research cut Starbucks from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Citigroup upped their price objective on Starbucks from $108.00 to $112.00 and gave the stock a “neutral” rating in a research note on Thursday, July 30th. William Blair reiterated an “outperform” rating on shares of Starbucks in a research note on Thursday. Royal Bank Of Canada reiterated a “sector perform” rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Thursday, July 30th. Finally, JPMorgan Chase & Co. dropped their price objective on Starbucks from $112.00 to $105.00 and set an “overweight” rating on the stock in a research note on Tuesday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, Starbucks currently has an average rating of “Hold” and a consensus target price of $110.22.

Starbucks Stock Performance

NASDAQ SBUX traded down $1.89 during trading on Friday, hitting $91.32. The stock had a trading volume of 1,351,735 shares, compared to its average volume of 8,025,308. The company has a market capitalization of $104.10 billion, a PE ratio of 52.52, a P/E/G ratio of 1.35 and a beta of 0.98. The company’s 50-day moving average price is $101.54 and its two-hundred day moving average price is $100.98. Starbucks has a 12 month low of $77.99 and a 12 month high of $110.51.

Starbucks (NASDAQ:SBUX) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, beating the consensus estimate of $0.66 by $0.19. The firm had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The business’s quarterly revenue was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, equities analysts anticipate that Starbucks will post 2.59 earnings per share for the current fiscal year.

Insider Buying and Selling at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $105.60, for a total transaction of $235,382.40. Following the transaction, the chief executive officer directly owned 73,149 shares of the company’s stock, valued at approximately $7,724,534.40. The trade was a 2.96% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 6,099 shares of company stock worth $627,135. 0.03% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new position in shares of Starbucks during the 2nd quarter worth approximately $8,504,509,000. State Street Corp grew its holdings in Starbucks by 3.2% in the 2nd quarter. State Street Corp now owns 49,260,268 shares of the coffee company’s stock valued at $5,033,907,000 after buying an additional 1,530,497 shares in the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in Starbucks by 65.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock valued at $1,637,704,000 after buying an additional 7,725,547 shares in the last quarter. Bank of America Corp DE acquired a new position in Starbucks in the 2nd quarter valued at $1,581,287,000. Finally, Invesco Ltd. grew its holdings in Starbucks by 7.5% in the 4th quarter. Invesco Ltd. now owns 14,607,392 shares of the coffee company’s stock valued at $1,230,088,000 after buying an additional 1,016,898 shares in the last quarter. 72.29% of the stock is owned by institutional investors and hedge funds.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Citigroup sees strategic potential in combining the two restaurant brands, particularly through Niccol’s prior experience leading Chipotle and possible international expansion opportunities. However, the report remains exploratory and no deal has been confirmed. Citi Sees Strategic Potential in Starbucks-Chipotle Takeover
• Positive Sentiment: DA Davidson reaffirmed its Neutral rating but maintained a $110 price target, implying meaningful upside from the stock’s recent level. Investors may view the target as support for Starbucks’ standalone turnaround potential. DA Davidson Starbucks Rating
• Neutral Sentiment: Starbucks raised its quarterly dividend from $0.62 to $0.63 per share, bringing the annualized payout to $2.52. The increase signals confidence in cash generation, although the company’s elevated valuation and payout ratio remain important considerations. Starbucks Announces Dividend Increase
• Neutral Sentiment: Starbucks is scheduled to report fourth-quarter and full-year fiscal 2026 results after the market close on October 29. Its latest quarter beat earnings and revenue estimates, but revenue declined 1.4% year over year, leaving investors focused on evidence that the recovery is sustainable. Starbucks Fiscal 2026 Results Conference Call
• Negative Sentiment: Analysts warn that purchasing Chipotle could saddle Starbucks with substantial debt and integration costs while it is still closing underperforming stores and rebuilding customer traffic. Several reports describe the probability of a completed deal as low, increasing the risk that the rumor creates volatility without a clear strategic outcome. Why a Starbucks Takeover of Chipotle Would and Wouldn’t Make Sense
• Negative Sentiment: The reported takeover interest has pushed Starbucks shares lower as investors favor management concentrating on the core coffee business and turnaround rather than pursuing a record-sized restaurant acquisition. Starbucks Explored Chipotle Takeover

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company that operates coffeehouses and sells coffee, tea and other beverages, along with food products and merchandise. Its menu includes brewed coffee, espresso-based drinks, cold beverages, teas, bakery items and ready-to-eat food. Starbucks also markets packaged coffee, ready-to-drink beverages and related products through retail and grocery channels, often through licensing and other business partnerships.

Founded in Seattle in 1971, Starbucks expanded from a local coffee retailer into an international brand.