Starbucks’ (SBUX) “Neutral” Rating Reiterated at DA Davidson

DA Davidson reaffirmed their neutral rating on shares of Starbucks (NASDAQ:SBUX) in a report published on Friday morning,Benzinga reports. They currently have a $110.00 target price on the coffee company’s stock.

Several other equities research analysts have also commented on SBUX. Citigroup reissued a “neutral” rating and set a $104.00 price target (down from $112.00) on shares of Starbucks in a research note on Tuesday, October 20th. TD Cowen restated a “buy” rating and issued a $120.00 price target on shares of Starbucks in a research note on Friday. BTIG Research reissued a “buy” rating and set a $115.00 target price on shares of Starbucks in a research note on Friday. Needham & Company LLC set a $120.00 target price on Starbucks in a report on Tuesday, August 18th. Finally, BMO Capital Markets restated 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 issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $110.53.

Starbucks Stock Performance

Shares of SBUX opened at $103.67 on Friday. The firm has a market cap of $118.18 billion, a P/E ratio of 46.91, a price-to-earnings-growth ratio of 1.55 and a beta of 1.01. Starbucks has a 12-month low of $77.99 and a 12-month high of $110.51. The company’s 50-day moving average price is $99.26 and its 200 day moving average price is $99.70.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data 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 analysts’ expectations of $9.22 billion. Starbucks had a negative return on equity of 38.61% and a net margin of 6.66%. The company’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period last year, the firm earned $0.52 earnings per share. Equities research analysts forecast that Starbucks will post 3.21 earnings per share for the current year.

Starbucks Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be given a dividend of $0.63 per share. This is a positive change from Starbucks’s previous quarterly dividend of $0.62. This represents a $2.52 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, November 13th. Starbucks’s payout ratio is currently 112.22%.

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $105.60, for a total transaction of $235,382.40. Following the completion of the transaction, the chief executive officer owned 73,149 shares in the company, valued at approximately $7,724,534.40. This trade represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock worth $685,935 in the last 90 days. 0.03% of the stock is currently owned by insiders.

Institutional Trading of Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. BlackRock Inc. bought a new stake in shares of Starbucks during the second quarter valued at approximately $8,504,509,000. State Street Corp lifted its holdings in Starbucks by 3.2% during the second quarter. State Street Corp now owns 49,260,268 shares of the coffee company’s stock valued at $5,033,907,000 after purchasing an additional 1,530,497 shares during the last quarter. Bank of America Corp DE lifted its position in shares of Starbucks by 9.0% during the first quarter. Bank of America Corp DE now owns 15,761,355 shares of the coffee company’s stock worth $1,412,060,000 after acquiring an additional 1,300,085 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Starbucks by 26.2% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,506,482 shares of the coffee company’s stock worth $869,277,000 after purchasing an additional 1,767,530 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Starbucks during the 2nd quarter worth approximately $779,790,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks News Roundup

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

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.