Starbucks (NASDAQ:SBUX) Stock Gets Price Target Reduction from Wells Fargo & Company

Starbucks (NASDAQ:SBUX) had its target price cut by Wells Fargo & Company from $125.00 to $120.00 in a research note published on Wednesday morning,Benzinga reports. They currently have an overweight rating on the coffee company’s stock.

Several other research firms have also recently issued reports on SBUX. Robert W. Baird reduced their target price on Starbucks from $124.00 to $115.00 and set an “outperform” rating on the stock in a research note on Friday, October 2nd. Compass Point initiated coverage on Starbucks in a report on Monday, August 3rd. They set a “buy” rating for the company. TD Cowen reissued a “buy” rating on shares of Starbucks in a research report on Monday, September 21st. Guggenheim initiated coverage on shares of Starbucks in a report on Monday, August 3rd. They issued a “buy” rating for the company. Finally, Rothschild & Co Redburn upped their price objective on shares of Starbucks from $81.00 to $82.00 and gave the stock a “sell” rating in a report on Wednesday, September 30th. Twenty-four equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $110.14.

Starbucks Trading Down 1.1%

Starbucks stock opened at $100.80 on Wednesday. The firm has a market cap of $114.91 billion, a P/E ratio of 41.94, a P/E/G ratio of 1.47 and a beta of 0.98. Starbucks has a 1-year low of $77.99 and a 1-year high of $110.51. The firm has a 50-day moving average of $99.44 and a 200-day moving average of $101.38.

Starbucks (NASDAQ:SBUX) last announced its quarterly 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 company had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%. Starbucks’s revenue was down 1.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Research analysts forecast that Starbucks will post 2.65 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 2.5%. This is a positive change from Starbucks’s previous quarterly dividend of $0.62. The ex-dividend date is Friday, November 13th. Starbucks’s dividend payout ratio is currently 142.53%.

Insider Buying and Selling

In other 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 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 filing with the SEC, 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 worth $685,935 over the last ninety days. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Starbucks

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in Starbucks in the second quarter worth about $8,504,509,000. State Street Corp increased its stake in shares of Starbucks by 3.2% during the second quarter. State Street Corp now owns 49,260,268 shares of the coffee company’s stock valued at $5,033,907,000 after purchasing an additional 1,530,497 shares in the last quarter. Bank of America Corp DE increased its stake in shares of Starbucks by 9.0% during the first quarter. Bank of America Corp DE now owns 15,761,355 shares of the coffee company’s stock valued at $1,412,060,000 after purchasing an additional 1,300,085 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Starbucks by 26.2% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,506,482 shares of the coffee company’s stock valued at $869,277,000 after purchasing an additional 1,767,530 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Starbucks during the second quarter valued at approximately $779,790,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks is expected to report fiscal fourth-quarter results next week, with analysts anticipating double-digit year-over-year EPS growth. A beat or stronger-than-expected outlook could support the shares, particularly after the company’s previous quarter exceeded earnings and revenue estimates. What to Expect From Starbucks’ Next Earnings Report
• Positive Sentiment: Starbucks China plans to invest approximately 300 million yuan, or $45 million, in staffing and store upgrades. The spending could improve customer service and the store experience, potentially supporting sales and traffic over time. Starbucks China Invests in Store Experience
• Positive Sentiment: The company’s quarterly dividend recently increased to $0.63 per share, reinforcing Starbucks’ appeal to income-oriented investors. The next dividend is scheduled for November 27 for shareholders of record on November 13. Starbucks Dividend Schedule
• Neutral Sentiment: Starbucks China will require customers to make a purchase before using seating areas. The policy may increase seat turnover and store productivity, but it could also affect customer perception; the financial impact is not yet clear. Starbucks China Launches New Rules
• Neutral Sentiment: Reports indicate Starbucks has abandoned a potential Chipotle transaction. Avoiding a costly or distracting acquisition may benefit the turnaround, although investors lose a possible diversification catalyst. Starbucks Ditches Chipotle Deal
• Negative Sentiment: Mizuho lowered its Starbucks price target from $115 to $105 and maintained a neutral rating, signaling limited expected upside at current valuation levels. Wells Fargo has also reduced its target, while the shares trade at a demanding earnings multiple. Mizuho Starbucks Rating
• Negative Sentiment: Polen Capital trimmed its Starbucks position, suggesting that progress from the turnaround is increasingly reflected in the stock’s valuation and that future gains may require stronger fundamental improvement. Polen Capital Trims Starbucks
• Negative Sentiment: CEO Brady Brewer sold 588 shares for $58,800 under a pre-arranged Rule 10b5-1 plan. The transaction was small relative to his remaining holdings, limiting its significance, but insider selling can add modest investor caution. Starbucks CEO Stock Sale

About Starbucks

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.