Starbucks Corporation (NASDAQ:SBUX) Stock Has Consensus Target Price of $110.80

Shares of Starbucks Corporation (NASDAQ:SBUX) have been assigned a consensus recommendation of “Hold” from the forty ratings firms that are presently covering the stock, MarketBeat reports. Five research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twenty-three have issued a buy rating on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $110.80.

Several brokerages have recently weighed in on SBUX. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $126.00 price target (up from $120.00) on shares of Starbucks in a report on Thursday, July 30th. Melius Research set a $110.00 price target on shares of Starbucks in a research note on Monday, August 3rd. Gordon Haskett upped their price target on shares of Starbucks from $110.00 to $118.00 and gave the stock a “hold” rating in a research note on Thursday, July 30th. Royal Bank Of Canada reissued a “sector perform” rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research report on Thursday, July 30th. Finally, DA Davidson restated a “neutral” rating and set a $110.00 price objective on shares of Starbucks in a research note on Friday, October 9th.

Starbucks Trading Up 3.9%

Shares of NASDAQ:SBUX opened at $96.88 on Tuesday. The stock has a fifty day simple moving average of $100.34 and a two-hundred day simple moving average of $101.04. The stock has a market capitalization of $110.44 billion, a price-to-earnings ratio of 38.37, a PEG ratio of 1.35 and a beta of 0.98. 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, topping the consensus estimate of $0.66 by $0.19. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%. The business had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. During the same period in the previous year, the company posted $0.50 earnings per share. The company’s revenue for the quarter was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, equities research analysts predict that Starbucks will post 2.59 EPS for the current year.

Starbucks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 2.6%. This is a boost from Starbucks’s previous quarterly dividend of $0.62. The ex-dividend date of this dividend is Friday, November 13th. Starbucks’s dividend payout ratio is presently 142.53%.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks raised its dividend by 1.6%, extending its record to 16 consecutive annual increases. The payout supports the stock’s income appeal and signals management’s confidence in future cash generation. Starbucks dividend increase article
• Positive Sentiment: Starbucks’ gift-card program holds approximately $1.8 billion in customer balances, providing low-cost working capital and potential breakage revenue when balances go unused. Starbucks gift card article
• Positive Sentiment: A limited-time drinkware and cake-pop collection exclusive to Target could generate incremental merchandise sales and attract customers to Starbucks products, although the financial impact is likely modest. Starbucks Target collection article
• Neutral Sentiment: Starbucks denied speculation that it would acquire Chipotle Mexican Grill. Avoiding a potentially expensive restaurant acquisition removes execution and financing risks, while the company says it remains focused on its “Back to Starbucks” turnaround plan. Starbucks Chipotle acquisition denial
• Negative Sentiment: Analysts and commentators question whether the dividend is sustainable if earnings do not accelerate. Starbucks trades at a high earnings multiple, while recent revenue declined year over year and shares have lagged the broader market. Starbucks dividend sustainability article

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $105.60, for a total transaction of $235,382.40. Following the sale, the chief executive officer owned 73,149 shares in the company, valued at $7,724,534.40. This represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,099 shares of company stock valued at $627,135 in the last 90 days. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Starbucks during the 2nd quarter valued at $8,504,509,000. State Street Corp increased its holdings in shares of Starbucks by 3.2% in the 2nd quarter. State Street Corp now owns 49,260,268 shares of the coffee company’s stock worth $5,033,907,000 after purchasing an additional 1,530,497 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in shares of 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 worth $1,637,704,000 after purchasing an additional 7,725,547 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Starbucks by 9.0% in 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 purchasing an additional 1,300,085 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Starbucks by 7.5% in the fourth quarter. Invesco Ltd. now owns 14,607,392 shares of the coffee company’s stock worth $1,230,088,000 after purchasing an additional 1,016,898 shares during the last quarter. Institutional investors own 72.29% of the company’s stock.

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.