Starbucks Corporation (NASDAQ:SBUX) Given Average Rating of “Hold” by Brokerages

Starbucks Corporation (NASDAQ:SBUX) has earned a consensus rating of “Hold” from the thirty-four ratings firms that are covering the firm, Marketbeat reports. Four investment analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation, eighteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $110.2963.

A number of analysts recently weighed in on SBUX shares. Evercore reiterated an “outperform” rating on shares of Starbucks in a research report on Thursday, July 30th. Guggenheim initiated coverage on Starbucks in a report on Monday, August 3rd. They set a “buy” rating on the stock. TD Cowen restated a “buy” rating on shares of Starbucks in a report on Tuesday, August 18th. Robert W. Baird upgraded Starbucks to a “strong-buy” rating in a research report on Monday, August 24th. Finally, Compass Point assumed coverage on shares of Starbucks in a report on Monday, August 3rd. They issued a “buy” rating for the company.

Starbucks Price Performance

Shares of NASDAQ:SBUX opened at $107.85 on Monday. The stock has a market cap of $122.95 billion, a price-to-earnings ratio of 61.98, a P/E/G ratio of 1.86 and a beta of 0.97. The company has a 50 day moving average of $105.10 and a 200-day moving average of $100.79. Starbucks has a one year low of $77.99 and a one year high of $110.51.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (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 firm had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. During the same period last year, the firm earned $0.50 earnings per share. The business’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. Equities research analysts anticipate that Starbucks will post 2.64 earnings per share for the current year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Friday, August 14th. Starbucks’s dividend payout ratio (DPR) is currently 142.53%.

Insider Activity

In related news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $105.99, for a total value of $236,251.71. Following the completion of the transaction, the chief executive officer owned 75,135 shares of the company’s stock, valued at approximately $7,963,558.65. This trade represents a 2.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 valued at $681,663 in the last 90 days. 0.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC increased its holdings in Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock worth $16,126,000 after buying an additional 81,952 shares during the last quarter. Schnieders Capital Management LLC. grew its holdings in Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company’s stock worth $334,000 after purchasing an additional 1,164 shares during the period. Flow Traders U.S. LLC bought a new stake in Starbucks in the second quarter valued at approximately $288,000. Gamco Investors INC. ET AL boosted its stake in shares of Starbucks by 92.8% during the 2nd quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company’s stock worth $479,000 after acquiring an additional 2,515 shares during the period. Finally, NewEdge Advisors LLC raised its stake in Starbucks by 7.6% in the 2nd quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company’s stock valued at $10,328,000 after acquiring an additional 7,978 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Company Profile

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.