Starbucks Corporation (NASDAQ:SBUX) Receives Average Recommendation of “Hold” from Analysts

Shares of Starbucks Corporation (NASDAQ:SBUX) have received a consensus recommendation of “Hold” from the thirty-four analysts that are presently covering the company, MarketBeat.com reports. Four equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating, eighteen have given a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $110.2963.

Several analysts have commented on the company. BNP Paribas Exane upped their price objective on Starbucks from $87.00 to $92.00 and gave the company an “underperform” rating in a research note on Thursday, July 30th. Robert W. Baird raised shares of Starbucks to a “strong-buy” rating in a research note on Monday, August 24th. Zacks Research downgraded shares of Starbucks from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Melius Research set a $110.00 target price on shares of Starbucks in a report on Monday, August 3rd. Finally, Raymond James Financial cut shares of Starbucks to an “outperform” rating in a report on Monday, August 3rd.

Starbucks Price Performance

Shares of NASDAQ:SBUX opened at $95.11 on Friday. Starbucks has a 12 month low of $77.99 and a 12 month high of $110.51. The firm has a market capitalization of $108.43 billion, a P/E ratio of 54.66, a P/E/G ratio of 1.64 and a beta of 0.97. The company’s fifty day moving average price is $103.96 and its 200 day moving average price is $101.27.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, topping analysts’ consensus estimates of $0.66 by $0.19. The business had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The business’s revenue was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, sell-side analysts anticipate that Starbucks will post 2.64 EPS for the current year.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks plans to establish a global technology and capability hub in Chennai, India, initially creating approximately 800 jobs. The center could improve technology capabilities and support long-term operating efficiency, although the immediate financial impact is likely limited. Starbucks to build India technology hub in Chennai
• Positive Sentiment: CEO Brian Niccol’s “Back to Starbucks” strategy appears to be restoring customer momentum, with comparable sales reportedly rising 7.9% in the fiscal third quarter for a fourth consecutive quarter of improvement. This supports the recovery narrative and helps explain the stock’s year-long advance. Starbucks CEO Niccol customer recovery
• Neutral Sentiment: Starbucks settled a lawsuit in Florida involving its diversity policies. The resolution may remove some legal uncertainty, but the available report does not provide financial terms or indicate a material effect on earnings. Starbucks settles Florida lawsuit
• Negative Sentiment: Investors are increasingly focused on whether Starbucks can convert improved sales into stronger cash flow and margins. Store remodels, labor investments and the broader turnaround are raising costs, while the stock’s valuation leaves less room for execution disappointments. Starbucks valuation and margin pressure
• Negative Sentiment: A reformulated chai recipe has triggered complaints and petitions from loyal customers. Although the issue may not materially affect companywide sales, it highlights the reputational and customer-retention risks associated with menu changes. Starbucks chai recipe backlash

Insider Buying and Selling

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction 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 directly owned 73,149 shares in the company, valued at approximately $7,724,534.40. The trade was a 2.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,687 shares of company stock valued at $703,450 over the last three months. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Meeder Asset Management Inc. bought a new position in Starbucks during the second quarter worth about $25,000. Black Cypress Capital Management LLC acquired a new stake in shares of Starbucks during the second quarter worth $27,000. Phillip James Consulting Co. acquired a new position in Starbucks in the 4th quarter worth $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks in the 4th quarter valued at about $25,000. Finally, Financial Freedom LLC boosted its position in shares of Starbucks by 296.2% during the first quarter. Financial Freedom LLC now owns 313 shares of the coffee company’s stock worth $28,000 after buying an additional 234 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

About Starbucks

Starbucks Corporation is a global coffeehouse company that roasts, markets and sells specialty coffee, tea, cold beverages, food and other related products. Its offerings include brewed coffee, espresso-based beverages, cold drinks, teas, pastries, breakfast items and packaged coffee and tea products. Starbucks also sells branded merchandise, including drinkware and related accessories.

Founded in 1971 in Seattle, Starbucks has grown from a local coffee retailer into an international business.