Zacks Research Decreases Earnings Estimates for Starbucks

Starbucks Co. (NASDAQ:SBUX) – Zacks Research dropped their FY2025 EPS estimates for shares of Starbucks in a report released on Wednesday, November 20th. Zacks Research analyst H. Ray now expects that the coffee company will post earnings of $3.11 per share for the year, down from their prior forecast of $3.56. The consensus estimate for Starbucks’ current full-year earnings is $3.12 per share.

A number of other research analysts have also issued reports on the company. BTIG Research lifted their target price on Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. Deutsche Bank Aktiengesellschaft upgraded shares of Starbucks from a “hold” rating to a “buy” rating and boosted their target price for the stock from $85.00 to $118.00 in a report on Wednesday, August 14th. Robert W. Baird upgraded shares of Starbucks from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $81.00 to $110.00 in a report on Tuesday, August 13th. BMO Capital Markets lifted their price target on shares of Starbucks from $100.00 to $110.00 and gave the stock an “outperform” rating in a research report on Monday, September 9th. Finally, Morgan Stanley increased their price objective on Starbucks from $98.00 to $115.00 and gave the company an “overweight” rating in a research report on Wednesday, October 16th. Three analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $103.77.

Starbucks Price Performance

SBUX opened at $100.68 on Monday. Starbucks has a 1-year low of $71.55 and a 1-year high of $103.32. The company has a market capitalization of $114.15 billion, a price-to-earnings ratio of 30.42, a price-to-earnings-growth ratio of 3.00 and a beta of 0.97. The business has a 50 day moving average price of $97.30 and a two-hundred day moving average price of $87.55.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.80. The business had revenue of $9.07 billion for the quarter, compared to analysts’ expectations of $9.60 billion. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The company’s revenue was down 3.2% on a year-over-year basis. During the same period in the previous year, the business earned $1.06 earnings per share.

Starbucks Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be paid a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 2.42%. The ex-dividend date of this dividend is Friday, November 15th. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s payout ratio is presently 73.72%.

Insider Buying and Selling

In other Starbucks news, CFO Rachel Ruggeri sold 1,491 shares of the business’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $99.54, for a total transaction of $148,414.14. Following the completion of the transaction, the chief financial officer now owns 80,124 shares of the company’s stock, valued at $7,975,542.96. The trade was a 1.83 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jorgen Vig Knudstorp purchased 380 shares of the stock in a transaction dated Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the completion of the transaction, the director now owns 36,242 shares of the company’s stock, valued at $3,316,143. The trade was a 1.06 % increase in their position. The disclosure for this purchase can be found here. 1.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently bought and sold shares of the stock. Quent Capital LLC increased its position in shares of Starbucks by 9.6% during the first quarter. Quent Capital LLC now owns 4,389 shares of the coffee company’s stock valued at $401,000 after purchasing an additional 385 shares during the period. Waverly Advisors LLC lifted its holdings in shares of Starbucks by 128.8% during the 1st quarter. Waverly Advisors LLC now owns 11,994 shares of the coffee company’s stock worth $1,096,000 after acquiring an additional 6,753 shares during the period. Industrial Alliance Investment Management Inc. lifted its holdings in shares of Starbucks by 4.4% during the 1st quarter. Industrial Alliance Investment Management Inc. now owns 3,395 shares of the coffee company’s stock worth $310,000 after acquiring an additional 143 shares during the period. Fairbanks Capital Management Inc. bought a new position in shares of Starbucks during the 1st quarter worth about $767,000. Finally, Sweeney & Michel LLC acquired a new stake in shares of Starbucks during the 1st quarter valued at about $621,000. Institutional investors own 72.29% of the company’s stock.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.