Starbucks’ (SBUX) Neutral Rating Reiterated at DA Davidson

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating reiterated by equities research analysts at DA Davidson in a research report issued to clients and investors on Friday, Benzinga reports. They currently have a $110.00 target price on the coffee company’s stock. DA Davidson’s price objective would indicate a potential upside of 19.97% from the stock’s current price.

Other equities research analysts have also issued reports about the stock. 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. Evercore reiterated an “outperform” rating on shares of Starbucks in a research report on Thursday, July 30th. Robert W. Baird upgraded shares of Starbucks to a “strong-buy” rating in a research report on Monday, August 24th. Guggenheim started coverage on shares of Starbucks in a research report on Monday, August 3rd. They set a “buy” rating on the stock. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $126.00 target price on shares of Starbucks in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Starbucks currently has an average rating of “Hold” and an average price target of $110.22.

Starbucks Stock Performance

Shares of NASDAQ:SBUX traded down $1.52 during trading on Friday, reaching $91.69. The stock had a trading volume of 3,570,518 shares, compared to its average volume of 8,036,461. The firm’s fifty day moving average is $101.54 and its 200 day moving average is $100.98. Starbucks has a 52 week low of $77.99 and a 52 week high of $110.51. The stock has a market cap of $104.53 billion, a price-to-earnings ratio of 52.69, a P/E/G ratio of 1.35 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 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 company had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same period in the prior year, the firm posted $0.50 EPS. The company’s quarterly revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, research analysts forecast that Starbucks will post 2.59 earnings per share for the current fiscal year.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks 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 transaction, the chief executive officer directly owned 73,149 shares of the company’s stock, valued at $7,724,534.40. The trade was a 2.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,099 shares of company stock valued at $627,135 over the last quarter. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Moody National Bank Trust Division boosted its holdings in Starbucks by 3.4% in the third quarter. Moody National Bank Trust Division now owns 23,341 shares of the coffee company’s stock valued at $2,193,000 after acquiring an additional 771 shares in the last quarter. QRG Capital Management Inc. boosted its stake in Starbucks by 10.5% in the 2nd quarter. QRG Capital Management Inc. now owns 159,617 shares of the coffee company’s stock worth $16,311,000 after purchasing an additional 15,211 shares in the last quarter. State Street Corp raised its position in Starbucks by 3.2% in the 2nd quarter. State Street Corp now owns 49,260,268 shares of the coffee company’s stock worth $5,033,907,000 after buying an additional 1,530,497 shares during the last quarter. Smith Chas P & Associates PA Cpas purchased a new stake in shares of Starbucks during the 2nd quarter valued at about $204,000. Finally, Marathon Wealth Advisors LLC increased its position in shares of Starbucks by 1.9% during the 2nd quarter. Marathon Wealth Advisors LLC now owns 13,128 shares of the coffee company’s stock valued at $1,342,000 after purchasing an additional 246 shares during the last quarter. 72.29% of the stock is 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 potential strategic benefits from combining the two restaurant brands, including international expansion opportunities and the relationship between Starbucks CEO Brian Niccol and his former company, Chipotle. However, the report remains speculative. Citi Sees Strategic Potential in Starbucks-Chipotle Takeover
• Positive Sentiment: Starbucks raised its quarterly dividend from $0.62 to $0.63 per share, bringing the annualized payout to $2.52. The increase signals continued confidence in cash generation, although the reported payout ratio is elevated. Starbucks Announces Increase in Quarterly Cash Dividend
• Neutral Sentiment: DA Davidson reaffirmed a “neutral” rating while maintaining a $110 price target. The target implies meaningful upside from recent trading levels, but the unchanged rating reflects uncertainty around execution and valuation.
• Neutral Sentiment: Investor attention has intensified ahead of Starbucks’ fiscal fourth-quarter and full-year 2026 results, scheduled for October 29 after the market close. The company’s latest quarter beat earnings and revenue estimates, but revenue declined year over year. Starbucks Announces Fiscal 2026 Results Conference Call
• Negative Sentiment: Investors worry that financing a potential Chipotle acquisition could require substantial new debt and increase execution risk while Starbucks is still restructuring its core business. Analysts have described the deal as potentially distracting and unlikely, while the market reaction has favored Chipotle rather than Starbucks. Why a Starbucks Takeover of Chipotle Would and Wouldn’t Make Sense
• Negative Sentiment: Starbucks’ turnaround still includes store closures and a reduced store-opening outlook, raising concerns about near-term growth. A proposed class-action lawsuit over allegedly misrepresented “sugar-free” protein drinks adds potential legal and reputational risk.

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.