Starbucks (NASDAQ:SBUX) Coverage Initiated at Wolfe Research

Equities researchers at Wolfe Research started coverage on shares of Starbucks (NASDAQ:SBUX) in a note issued to investors on Monday. The brokerage set a “peer perform” rating on the coffee company’s stock.

A number of other brokerages also recently weighed in on SBUX. BMO Capital Markets reaffirmed an “outperform” rating and set a $120.00 price target on shares of Starbucks in a research report on Friday, January 30th. William Blair raised shares of Starbucks from a “market perform” rating to an “outperform” rating in a research report on Thursday, January 22nd. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $113.00 price objective on shares of Starbucks in a research note on Thursday, January 29th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Starbucks in a research note on Monday, December 29th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $105.00 price target on shares of Starbucks in a report on Thursday, January 29th. Seventeen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $104.22.

Starbucks Trading Down 1.6%

Shares of SBUX stock traded down $1.57 during trading hours on Monday, hitting $97.42. 1,709,743 shares of the company were exchanged, compared to its average volume of 9,451,644. Starbucks has a 52 week low of $75.50 and a 52 week high of $106.00. The business has a 50 day moving average of $93.71 and a two-hundred day moving average of $87.87. The company has a market capitalization of $110.99 billion, a PE ratio of 80.51, a PEG ratio of 2.21 and a beta of 0.93.

Starbucks (NASDAQ:SBUX) last released its earnings results on Wednesday, January 28th. The coffee company reported $0.56 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.03). Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. The firm had revenue of $9.92 billion during the quarter, compared to the consensus estimate of $9.62 billion. During the same quarter in the previous year, the firm posted $0.69 EPS. The company’s revenue was up 5.5% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. On average, research analysts forecast that Starbucks will post 2.99 EPS for the current year.

Hedge Funds Weigh In On Starbucks

Hedge funds have recently added to or reduced their stakes in the stock. Transce3nd LLC raised its stake in Starbucks by 270.3% in the second quarter. Transce3nd LLC now owns 274 shares of the coffee company’s stock valued at $25,000 after purchasing an additional 200 shares in the last quarter. Collier Financial acquired a new stake in Starbucks during the third quarter worth about $25,000. Rachor Investment Advisory Services LLC acquired a new stake in Starbucks during the fourth quarter worth about $25,000. Cornerstone Financial Management LLC bought a new position in Starbucks in the 4th quarter valued at about $25,000. Finally, Phillip James Consulting Co. acquired a new position in shares of Starbucks in the 4th quarter valued at approximately $25,000. Institutional investors own 72.29% of the company’s stock.

Starbucks Company Profile

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.