Starbucks (NASDAQ:SBUX) Research Coverage Started at Stifel Nicolaus

Stifel Nicolaus initiated coverage on shares of Starbucks (NASDAQ:SBUX) in a report released on Monday morning. The brokerage issued a buy rating and a $115.00 price target on the coffee company’s stock.

Several other equities research analysts also recently issued reports on SBUX. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $115.00 price target (up from $110.00) on shares of Starbucks in a report on Thursday, July 30th. JPMorgan Chase & Co. reduced their price objective on shares of Starbucks from $112.00 to $105.00 and set an “overweight” rating for the company in a research report on Tuesday, September 29th. Needham & Company LLC set a $120.00 price objective on shares of Starbucks in a report on Tuesday, August 18th. Rothschild & Co Redburn increased their price objective on shares of Starbucks from $81.00 to $82.00 and gave the company a “sell” rating in a research report on Wednesday, September 30th. Finally, Bank of America restated a “buy” rating on shares of Starbucks in a research note on Monday, November 2nd. Twenty-one equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Starbucks has an average rating of “Hold” and a consensus price target of $108.83.

Starbucks Stock Performance

Shares of NASDAQ:SBUX opened at $109.89 on Monday. Starbucks has a 52-week low of $81.97 and a 52-week high of $111.50. The company has a market capitalization of $125.27 billion, a P/E ratio of 49.72, a price-to-earnings-growth ratio of 1.82 and a beta of 1.01. The company has a 50-day simple moving average of $99.33 and a 200 day simple moving average of $100.24.

Starbucks (NASDAQ:SBUX) last posted its quarterly 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. Starbucks had a negative return on equity of 38.61% and a net margin of 6.66%. The business had revenue of $9.14 billion during the quarter, compared to analysts’ expectations of $9.22 billion. During the same quarter last year, the company posted $0.52 earnings per share. Starbucks’s quarterly revenue was down 4.5% on a year-over-year basis. As a group, equities analysts forecast that Starbucks will post 3.22 earnings per share for the current 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. The ex-dividend date of this dividend is Friday, November 13th. This represents a $2.52 dividend on an annualized basis and a yield of 2.3%. This is a positive change from Starbucks’s previous quarterly dividend of $0.62. Starbucks’s payout ratio is currently 114.03%.

Insider Buying and Selling

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Thursday, November 5th. The stock was sold at an average price of $110.00, for a total transaction of $245,190.00. Following the transaction, the chief executive officer owned 68,691 shares in the company, valued at $7,556,010. This trade represents a 3.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 6,687 shares of company stock valued at $694,874. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Starbucks

A number of institutional investors have recently modified their holdings of SBUX. Avantax Planning Partners Inc. raised its stake in Starbucks by 158.7% in the third quarter. Avantax Planning Partners Inc. now owns 8,181 shares of the coffee company’s stock valued at $769,000 after purchasing an additional 5,019 shares in the last quarter. Robinhood Asset Management LLC acquired a new stake in Starbucks during the second quarter worth about $10,187,000. Nykredit A S acquired a new stake in Starbucks during the second quarter worth about $29,524,000. The Manufacturers Life Insurance Company acquired a new stake in Starbucks during the second quarter worth about $61,404,000. Finally, Bank of America Corp DE bought a new position in Starbucks in the 2nd quarter valued at about $1,581,287,000. Institutional investors own 72.29% of the company’s stock.

Trending Headlines about Starbucks

Investors following SBUX have been watching these headlines:

• Positive Sentiment: The company raised its quarterly dividend to $0.63 per share from $0.62, a modest increase that may appeal to income-focused investors.
• Negative Sentiment: Fiscal 2027 guidance anticipates revenue declining about 1% as Starbucks shifts its China business model. That outlook may concern investors, particularly after the stock’s recent strong gains. Starbucks outlook and valuation
• Negative Sentiment: Recent valuation commentary questions whether the rally has run ahead of the company’s growth and cash-flow prospects, leaving the shares vulnerable if execution or guidance disappoints.

About Starbucks

Starbucks Corporation is a global coffee company that roasts, markets and sells coffee and other beverages, along with food and related merchandise. Its offerings include brewed coffee, espresso-based drinks, teas and packaged coffee products. The company serves customers through company-operated and licensed stores, as well as through retail and food-service partnerships. Its stores also sell items such as mugs and coffee-making equipment. Founded in Seattle in 1971, Starbucks operates in North America and international markets, including China.