Starbucks (NASDAQ:SBUX) Earns “Neutral” Rating from DA Davidson

Starbucks (NASDAQ:SBUX)‘s stock had its “neutral” rating reissued by analysts at DA Davidson in a research note issued on Friday, Benzinga reports. They currently have a $110.00 target price on the coffee company’s stock. DA Davidson‘s price target indicates a potential upside of 5.00% from the stock’s previous close.

Other analysts also recently issued reports about the company. BMO Capital Markets restated an “outperform” rating on shares of Starbucks in a report on Friday. Melius Research set a $110.00 price target on shares of Starbucks in a report on Monday, August 3rd. Morgan Stanley cut shares of Starbucks from an “overweight” rating to an “underweight” rating in a research report on Monday, August 3rd. UBS Group reiterated a “neutral” rating and set a $105.00 price objective (down from $112.00) on shares of Starbucks in a research note on Thursday, October 8th. Finally, William Blair reissued an “outperform” rating on shares of Starbucks in a research note on Friday. Twenty-three analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $110.53.

Starbucks Stock Performance

SBUX stock traded down $0.75 during midday trading on Friday, reaching $104.76. The company’s stock had a trading volume of 9,054,310 shares, compared to its average volume of 8,119,042. The firm has a market capitalization of $119.42 billion, a price-to-earnings ratio of 60.22, a PEG ratio of 1.57 and a beta of 0.98. Starbucks has a 1 year low of $77.99 and a 1 year high of $110.51. The stock has a fifty day simple moving average of $99.26 and a two-hundred day simple moving average of $99.63.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Thursday, October 29th. The coffee company reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.72 by $0.08. The business had revenue of $9.14 billion for the quarter, compared to the consensus estimate of $9.22 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The company’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.52 EPS. As a group, analysts forecast that Starbucks will post 2.64 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Brady Brewer sold 588 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $100.00, for a total transaction of $58,800.00. Following the completion of the sale, the chief executive officer owned 70,920 shares of the company’s stock, valued at $7,092,000. This represents a 0.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,687 shares of company stock worth $685,935 over the last three months. Corporate insiders own 0.03% of the company’s stock.

Institutional Trading of Starbucks

Hedge funds and other institutional investors have recently made changes to their positions in the business. Meeder Asset Management Inc. acquired a new stake in Starbucks in the second quarter worth about $25,000. Black Cypress Capital Management LLC acquired a new stake in Starbucks in the 2nd quarter worth approximately $27,000. Center for Financial Planning Inc. boosted its stake in Starbucks by 125.2% in the 3rd quarter. Center for Financial Planning Inc. now owns 295 shares of the coffee company’s stock worth $28,000 after purchasing an additional 164 shares in the last quarter. Financial Freedom LLC grew its position in Starbucks by 296.2% during the 1st quarter. Financial Freedom LLC now owns 313 shares of the coffee company’s stock worth $28,000 after purchasing an additional 234 shares during the last quarter. Finally, Bangor Savings Bank grew its position in Starbucks by 207.5% during the 2nd quarter. Bangor Savings Bank now owns 326 shares of the coffee company’s stock worth $33,000 after purchasing an additional 220 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks reported adjusted earnings of $0.80 per share, above the roughly $0.72 consensus estimate and up 54% year over year. Adjusted operating margin expanded by approximately 450 basis points to 14%, supported by sales leverage, cost savings and easier comparisons. Starbucks Q4 Earnings Beat Estimates
• Positive Sentiment: Demand improved in the core U.S. business: global comparable sales rose 7.2%, while U.S. comparable sales increased 7.7%. Higher average ticket, food additions, product mix and stronger merchandise sales contributed, including continued momentum in matcha and cold beverages. Starbucks’ strong comps driven by ticket growth
• Positive Sentiment: CEO Brian Niccol said the “Back to Starbucks” turnaround is becoming a growth plan and is ahead of schedule. Management sees room for substantial international expansion, approximately 1,200 net new stores in fiscal 2027, more than 2,000 North American store upgrades and the resumption of share repurchases. BTIG reaffirmed its Buy rating with a $115 target, while Bank of America raised its target to $141. Analyst Maintains Buy on Starbucks
• Neutral Sentiment: The reported 4.5% revenue decline to $9.14 billion was largely caused by Starbucks’ restructuring of its China retail operations into a licensed joint venture. That transition reduces reported sales but shifts the business toward royalties and product revenue; North American revenue grew approximately 6%.
• Negative Sentiment: Revenue missed expectations of about $9.22 billion, international comparable transactions declined, and fiscal 2027 North American comparable-sales guidance of roughly 4% implies slower growth. Fourth-quarter U.S. transaction growth was 2.4%, versus 5.2% average-ticket growth, raising questions about whether future gains will rely too heavily on pricing and larger orders. Starbucks international business disappoints but U.S. stores outperform

Starbucks Company Profile

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.