Starbucks (NASDAQ:SBUX) Shares Gap Up on Analyst Upgrade

Starbucks Corporation (NASDAQ:SBUX) shares gapped up prior to trading on Wednesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock had previously closed at $95.72, but opened at $102.30. Starbucks shares last traded at $98.0930, with a volume of 11,793,784 shares changing hands.

A number of other brokerages have also recently issued reports on SBUX. Susquehanna set a $114.00 price objective on shares of Starbucks in a report on Wednesday, January 21st. Wells Fargo & Company set a $110.00 price objective on Starbucks in a report on Wednesday. TD Cowen reissued a “hold” rating and issued a $84.00 price objective on shares of Starbucks in a research note on Monday, December 1st. BMO Capital Markets reaffirmed an “outperform” rating on shares of Starbucks in a research report on Thursday, October 30th. Finally, Bank of America raised their price objective on Starbucks from $106.00 to $114.00 and gave the company a “buy” rating in a research note on Wednesday, January 21st. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $104.74.

Insider Buying and Selling at Starbucks

In related news, Director Jorgen Vig Knudstorp purchased 11,700 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The shares were bought at an average cost of $85.00 per share, with a total value of $994,500.00. Following the acquisition, the director owned 53,096 shares of the company’s stock, valued at $4,513,160. This represents a 28.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.09% of the company’s stock.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Investor Day and early-operational wins — management showcased the “Back to Starbucks” turnaround (new store designs, AI initiatives, beverage innovation) and reported revenue and comp-sales gains, evidence that traffic and transactions are improving. Starbucks Gets a Jolt After Earnings, But Will the Buzz Last?
• Positive Sentiment: Rewards relaunch to drive frequency — Starbucks announced a three-tiered Rewards program (Green, Gold, Reserve) to encourage repeat visits and personalization, which could lift transactions if adoption matches management’s plan. Starbucks Unveils Reimagined Loyalty Program to Deliver More Meaningful Value, Personalization and Engagement for Members
• Neutral Sentiment: CEO tone and public comments — Brian Niccol signaled willingness to negotiate with union organizers and discussed security and stock?price questions in media appearances; these comments reduce headline uncertainty but leave execution and labor outcomes unresolved. Starbucks CEO says he is willing to negotiate with unionizers
• Neutral Sentiment: Growth vs. guidance — management updated long?term targets (FY2028 EPS range) and reiterated growth levers; the guidance shows progress but contains mixed signals versus consensus, so investors are awaiting concrete margin improvements and forward execution. Starbucks CEO on Growth Plans, Pricing and China Market
• Negative Sentiment: Mixed earnings: EPS miss and margin pressure — Starbucks beat on revenue but missed EPS, and management warned margins remain pressured (higher input/labor costs). That combination helped pull back earlier post?earnings gains and weighs on near?term stock performance. Why Starbucks (SBUX) Shares Are Down After A Mixed Earnings Report
• Negative Sentiment: Governance/PR headwinds — a shareholder?rights law firm announced an investigation into officers/directors, and the company removed a cap on the CEO’s private jet use citing security, both creating short?term reputational and governance risk for the stock. Halper Sadeh LLC Encourages Starbucks Corporation Shareholders To Contact The Firm To Discuss Their Rights Starbucks removes cap on CEO’s use of company’s private jet, citing security concerns

Institutional Investors Weigh In On Starbucks

Several large investors have recently modified their holdings of SBUX. Game Plan Financial Advisors LLC purchased a new position in shares of Starbucks during the 2nd quarter valued at $25,000. Transce3nd LLC lifted its holdings in Starbucks by 270.3% during 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 during the last quarter. Collier Financial bought a new position in Starbucks during the third quarter worth about $25,000. Rachor Investment Advisory Services LLC purchased a new position in shares of Starbucks in the fourth quarter worth about $25,000. Finally, Y.D. More Investments Ltd purchased a new position in shares of Starbucks in the third quarter worth about $26,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Stock Down 2.1%

The company has a market cap of $104.56 billion, a P/E ratio of 75.99, a price-to-earnings-growth ratio of 1.98 and a beta of 0.97. The firm’s 50-day moving average price is $87.96 and its 200-day moving average price is $87.17.

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

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be given a dividend of $0.62 per share. The ex-dividend date is Friday, February 13th. This represents a $2.48 annualized dividend and a dividend yield of 2.7%. Starbucks’s dividend payout ratio is currently 151.22%.

About Starbucks

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.