Starbucks’ (SBUX) Neutral Rating Reaffirmed at DA Davidson

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating reissued by stock analysts at DA Davidson in a research note issued to investors on Friday, Benzinga reports. They presently have a $110.00 price target on the coffee company’s stock. DA Davidson’s target price points to a potential upside of 20.51% from the stock’s previous close.

A number of other research firms also recently commented on SBUX. Raymond James Financial downgraded Starbucks to an “outperform” rating in a report on Monday, August 3rd. BMO Capital Markets reiterated an “outperform” rating and issued a $130.00 price target (up from $120.00) on shares of Starbucks in a research note on Thursday, July 30th. Wells Fargo & Company downgraded Starbucks from an “overweight” rating to an “underweight” rating in a research note on Monday, August 3rd. Seaport Research Partners assumed coverage on Starbucks in a research report on Wednesday, September 16th. They set a “neutral” rating for the company. Finally, Citigroup raised their target price on Starbucks from $108.00 to $112.00 and gave the company a “neutral” rating in a research note on Thursday, July 30th. Twenty-three investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $110.80.

Starbucks Trading Down 1.1%

Shares of NASDAQ SBUX traded down $1.01 during trading hours on Friday, reaching $91.28. The stock had a trading volume of 4,508,152 shares, compared to its average volume of 8,080,454. The firm has a market cap of $104.06 billion, a price-to-earnings ratio of 52.46, a PEG ratio of 1.31 and a beta of 0.98. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $110.51. The firm has a 50-day moving average of $101.02 and a 200-day moving average of $100.96.

Starbucks (NASDAQ:SBUX) last released its earnings results 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. 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%. The company’s revenue for the quarter was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities analysts predict that Starbucks will post 2.59 EPS for the current year.

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $105.60, for a total value of $235,382.40. Following the sale, the chief executive officer owned 73,149 shares in the company, valued at approximately $7,724,534.40. This trade represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 6,099 shares of company stock worth $627,135. 0.03% of the stock is currently owned by insiders.

Institutional Trading of Starbucks

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SBUX. Robinhood Asset Management LLC acquired a new stake in shares of Starbucks in the 2nd quarter worth $10,187,000. Nykredit A S purchased a new position in shares of Starbucks in the second quarter worth about $29,524,000. The Manufacturers Life Insurance Company acquired a new stake in Starbucks during the 2nd quarter valued at approximately $61,404,000. Bank of America Corp DE purchased a new stake in shares of Starbucks in the 2nd quarter valued at $1,581,287,000. Finally, Saudi Central Bank boosted its holdings in Starbucks by 90.0% in the second quarter. Saudi Central Bank now owns 79,751 shares of the coffee company’s stock valued at $8,150,000 after purchasing an additional 37,779 shares during the last quarter. Institutional investors own 72.29% of the company’s stock.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks’ denial of takeover reports reduces the risk of substantial acquisition costs, added debt, and management distraction. Investors appear to have viewed the statement as supportive of Starbucks’ focus on improving its core coffee business. Starbucks says it is not buying Chipotle after takeover speculation
• Positive Sentiment: The company’s dividend increase provides an additional shareholder-return signal, although investors are weighing that benefit against Starbucks’ ongoing turnaround needs. 3 Stocks Raise Dividends, But Which Has Room to Keep Growing?

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.