DA Davidson Reaffirms “Neutral” Rating for Starbucks (NASDAQ:SBUX)

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating restated by analysts at DA Davidson in a research note issued on Friday, Benzinga reports. They presently have a $110.00 price objective on the coffee company’s stock. DA Davidson’s price objective points to a potential upside of 20.25% from the company’s current price.

A number of other research analysts have also recently weighed in on SBUX. Robert W. Baird raised shares of Starbucks to a “strong-buy” rating in a report on Monday, August 24th. Raymond James Financial downgraded Starbucks to an “outperform” rating in a research report on Monday, August 3rd. Wells Fargo & Company lowered shares of Starbucks from an “overweight” rating to an “underweight” rating in a research report on Monday, August 3rd. UBS Group reaffirmed a “neutral” rating and issued a $105.00 price objective (down from $112.00) on shares of Starbucks in a research note on Thursday. Finally, Evercore reaffirmed an “outperform” rating on shares of Starbucks in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $110.22.

Starbucks Trading Down 1.9%

Shares of Starbucks stock traded down $1.73 during trading hours on Friday, reaching $91.48. 2,539,206 shares of the company’s stock were exchanged, compared to its average volume of 8,029,993. The company has a 50 day moving average of $101.54 and a two-hundred day moving average of $100.98. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $110.51. The stock has a market cap of $104.28 billion, a P/E ratio of 52.74, a P/E/G ratio of 1.35 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last issued its quarterly 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 analyst estimates of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.Starbucks’s quarterly revenue was down 1.4% compared to the same quarter last year. During the same period last year, the company posted $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, analysts expect that Starbucks will post 2.59 earnings per share for the current fiscal year.

Insider Transactions at Starbucks

In other news, CEO Brady Brewer sold 1,641 shares of the company’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $94.76, for a total transaction of $155,501.16. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 6,099 shares of company stock worth $627,135. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SBUX. BlackRock Inc. purchased a new stake in Starbucks during the second quarter valued at $8,504,509,000. Bank of America Corp DE purchased a new position in Starbucks in the second quarter worth $1,581,287,000. T. Rowe Price Investment Management Inc. increased its stake in Starbucks by 65.9% in the fourth 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 purchased a new position in shares of Starbucks during the 2nd quarter valued at approximately $779,790,000. Finally, Legal & General Group Plc bought a new position in shares of Starbucks during the second quarter worth about $649,622,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Citigroup sees strategic potential in combining the two restaurant brands, particularly through Niccol’s prior experience leading Chipotle and possible international expansion opportunities. However, the report remains exploratory and no deal has been confirmed. Citi Sees Strategic Potential in Starbucks-Chipotle Takeover
• Positive Sentiment: DA Davidson reaffirmed its Neutral rating but maintained a $110 price target, implying meaningful upside from the stock’s recent level. Investors may view the target as support for Starbucks’ standalone turnaround potential. DA Davidson Starbucks Rating
• Neutral Sentiment: Starbucks raised its quarterly dividend from $0.62 to $0.63 per share, bringing the annualized payout to $2.52. The increase signals confidence in cash generation, although the company’s elevated valuation and payout ratio remain important considerations. Starbucks Announces Dividend Increase
• Neutral Sentiment: Starbucks is scheduled to report fourth-quarter and full-year fiscal 2026 results after the market close on October 29. Its latest quarter beat earnings and revenue estimates, but revenue declined 1.4% year over year, leaving investors focused on evidence that the recovery is sustainable. Starbucks Fiscal 2026 Results Conference Call
• Negative Sentiment: Analysts warn that purchasing Chipotle could saddle Starbucks with substantial debt and integration costs while it is still closing underperforming stores and rebuilding customer traffic. Several reports describe the probability of a completed deal as low, increasing the risk that the rumor creates volatility without a clear strategic outcome. Why a Starbucks Takeover of Chipotle Would and Wouldn’t Make Sense
• Negative Sentiment: The reported takeover interest has pushed Starbucks shares lower as investors favor management concentrating on the core coffee business and turnaround rather than pursuing a record-sized restaurant acquisition. Starbucks Explored Chipotle Takeover

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.