Starbucks (NASDAQ:SBUX) Stock Keeps Neutral Rating at DA Davidson

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating reissued by stock analysts at DA Davidson in a report issued on Friday, Benzinga reports. They currently have a $110.00 price objective on the coffee company’s stock. DA Davidson’s target price would suggest a potential upside of 21.21% from the company’s current price.

A number of other brokerages also recently issued reports on SBUX. Robert W. Baird upgraded shares of Starbucks to a “strong-buy” rating in a report on Monday, August 24th. Morgan Stanley downgraded shares of Starbucks from an “overweight” rating to an “underweight” rating in a report on Monday, August 3rd. Zacks Research downgraded shares of Starbucks from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $126.00 price target on shares of Starbucks in a report on Thursday, July 30th. Finally, Sanford C. Bernstein downgraded shares of Starbucks from an “outperform” rating to a “market perform” rating in a report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Starbucks currently has an average rating of “Hold” and an average target price of $110.22.

Starbucks Trading Down 2.6%

Shares of SBUX traded down $2.46 during trading hours on Friday, reaching $90.75. 12,762,341 shares of the stock traded hands, compared to its average volume of 8,085,155. Starbucks has a 52-week low of $77.99 and a 52-week high of $110.51. The company’s 50-day moving average price is $101.25 and its two-hundred day moving average price is $100.91. The company has a market cap of $103.46 billion, a P/E ratio of 52.16, a price-to-earnings-growth ratio of 1.35 and a beta of 0.98.

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

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 1,641 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $94.76, for a total value of $155,501.16. Following the sale, the chief executive officer directly owned 71,508 shares in the company, valued at $6,776,098.08. The trade was a 2.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 6,099 shares of company stock valued at $627,135. Insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several hedge funds have recently added to or reduced their stakes in SBUX. BlackRock Inc. bought a new position in Starbucks during the 2nd quarter valued at about $8,504,509,000. Bank of America Corp DE bought a new position in Starbucks during the 2nd quarter valued at about $1,581,287,000. T. Rowe Price Investment Management Inc. grew its holdings in Starbucks by 65.9% during 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 purchasing an additional 7,725,547 shares during the last quarter. Bank of New York Mellon Corp bought a new position in Starbucks during the 2nd quarter valued at about $779,790,000. Finally, Legal & General Group Plc bought a new position in Starbucks during the 2nd quarter valued at about $649,622,000. 72.29% of the stock is currently owned by institutional investors.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Some analysts see strategic benefits, including Niccol’s experience leading Chipotle and the possibility of using Starbucks’ international infrastructure to support Chipotle’s expansion. Citi also sees potential strategic rationale, although the deal remains unconfirmed. Citi Sees Strategic Potential in Starbucks-Chipotle Takeover Despite Investor Doubts
• Positive Sentiment: DA Davidson reaffirmed its neutral rating but maintained a $110 price target, implying meaningful upside from recent trading levels. Starbucks also raised its quarterly dividend to $0.63 per share, supporting the income-investment case.
• Neutral Sentiment: The takeover is only exploratory, and DA Davidson estimates approximately a 20% probability that a Starbucks-Chipotle deal will be completed. Neither company has confirmed an agreement, so the immediate market reaction is being driven primarily by speculation. DA Davidson Sees Limited Odds of Starbucks-Chipotle Deal
• Neutral Sentiment: Starbucks is scheduled to report fourth-quarter and full-year fiscal 2026 results after the market close on October 29. Investors will likely seek updates on the turnaround, store growth, margins and management’s capital-allocation priorities. Starbucks Announces Q4 and Full Fiscal Year 2026 Results Conference Call
• Negative Sentiment: Investors fear that acquiring Chipotle would burden Starbucks with substantial new debt and financing costs while its own turnaround remains unfinished. Analysts also question whether management should devote attention to a complex integration rather than improving Starbucks’ traffic, store operations and profitability. Why Buying Chipotle Would Be a Mistake for Starbucks
• Negative Sentiment: The concerns are amplified by Starbucks’ elevated valuation, recent store-closure and growth adjustments, and the company’s need to prove that its turnaround can produce sustainable revenue growth. The reported deal therefore appears to investors as a potentially costly distraction, explaining why SBUX has traded lower while Chipotle rallied on takeover hopes. Wall Street Warns Starbucks Chipotle Takeover Could Backfire

About Starbucks

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.