Starbucks (NASDAQ:SBUX) Raised to Hold at Melius Research

by · The Markets Daily

Starbucks (NASDAQ:SBUX – Get Free Report) was upgraded by investment analysts at Melius Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday, Marketbeat reports.

A number of other research analysts have also recently commented on the company. Royal Bank Of Canada reissued a “sector perform” rating and issued a $115.00 price target (up from $110.00) on shares of Starbucks in a report on Thursday. BTIG Research reissued a “buy” rating and issued a $115.00 target price on shares of Starbucks in a report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Starbucks in a research report on Monday, July 20th. Tigress Financial started coverage on Starbucks in a report on Wednesday, April 15th. They issued a “buy” rating and a $122.00 target price for the company. Finally, Scotiabank lowered shares of Starbucks from a “market perform” rating to an “underperform” rating in a report on Thursday, May 14th. Nineteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $112.04.

Check Out Our Latest Research Report on SBUX

Starbucks Price Performance

Shares of SBUX opened at $105.25 on Monday. The business has a fifty day moving average of $102.23 and a 200 day moving average of $99.15. The firm has a market capitalization of $119.98 billion, a P/E ratio of 60.49, a PEG ratio of 1.84 and a beta of 0.98. Starbucks has a one year low of $77.99 and a one year high of $109.23.

Starbucks (NASDAQ:SBUX – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The business had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. During the same quarter last year, the company posted $0.50 EPS. The company’s revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Analysts expect that Starbucks will post 2.6 EPS for the current fiscal year.

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $104.00, for a total value of $231,816.00. Following the sale, the chief executive officer directly owned 77,364 shares in the company, valued at approximately $8,045,856. This trade represents a 2.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock worth $679,033 over the last ninety days. Corporate insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Starbucks by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company’s stock valued at $9,634,523,000 after acquiring an additional 971,773 shares in the last quarter. Capital World Investors boosted its position in shares of Starbucks by 9.0% in the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock worth $7,135,228,000 after purchasing an additional 7,007,268 shares in the last quarter. State Street Corp boosted its position in shares of Starbucks by 0.7% in the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company’s stock worth $4,031,053,000 after purchasing an additional 327,161 shares in the last quarter. Geode Capital Management LLC grew its stake in Starbucks by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock worth $2,212,153,000 after buying an additional 225,168 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its stake in Starbucks by 65.9% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock worth $1,637,704,000 after buying an additional 7,725,547 shares during the last quarter. Institutional investors own 72.29% of the company’s stock.

About Starbucks

(Get Free Report)

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.

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