Starbucks (NASDAQ:SBUX) Reaches New 52-Week High – Here’s Why

Starbucks Corporation (NASDAQ:SBUX)’s stock price reached a new 52-week high on Thursday . The stock traded as high as $109.83 and last traded at $109.7860, with a volume of 235194 shares traded. The stock had previously closed at $108.49.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Starbucks in a research report on Monday, July 20th. Compass Point initiated coverage on Starbucks in a research note on Monday, August 3rd. They issued a “buy” rating on the stock. BNP Paribas Exane lifted their price objective on Starbucks from $87.00 to $92.00 and gave the company an “underperform” rating in a report on Thursday, July 30th. Piper Sandler reiterated an “overweight” rating and set a $110.00 target price on shares of Starbucks in a report on Wednesday, April 29th. Finally, UBS Group increased their target price on Starbucks from $105.00 to $112.00 and gave the company a “neutral” rating in a research report on Thursday, July 30th. Nineteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $109.92.

Starbucks Price Performance

The business has a fifty day simple moving average of $103.78 and a 200 day simple moving average of $99.97. The firm has a market cap of $122.77 billion, a price-to-earnings ratio of 61.89, a PEG ratio of 1.87 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 EPS 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 during the quarter, compared to the consensus estimate of $9.17 billion. During the same quarter in the prior year, the firm earned $0.50 EPS. Starbucks’s quarterly revenue 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 anticipate that Starbucks Corporation will post 2.64 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks’s dividend payout ratio is 142.53%.

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total value of $236,251.71. Following the completion of the sale, the chief executive officer directly owned 75,135 shares of the company’s stock, valued at approximately $7,963,558.65. The trade was a 2.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,687 shares of company stock worth $681,663 in the last ninety days. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several institutional investors have recently bought and sold shares of the company. Rachor Investment Advisory Services LLC acquired a new position in shares of Starbucks in the fourth quarter valued at approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in Starbucks during the 4th quarter worth approximately $25,000. Phillip James Consulting Co. purchased a new position in Starbucks in the 4th quarter valued at approximately $25,000. Meeder Asset Management Inc. purchased a new position in Starbucks in the second quarter valued at $25,000. Finally, Entrust Financial LLC purchased a new position in shares of Starbucks in the 4th quarter valued at about $26,000. 72.29% of the stock is owned by institutional investors and hedge funds.

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.