Starbucks (NASDAQ:SBUX) Lowered to “Hold” Rating by Zacks Research

Zacks Research downgraded shares of Starbucks (NASDAQ:SBUX) from a strong-buy rating to a hold rating in a research report report published on Monday morning,Zacks.com reports.

Several other equities research analysts have also recently issued reports on the stock. Robert W. Baird raised their price objective on shares of Starbucks from $112.00 to $117.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 29th. DA Davidson boosted their target price on shares of Starbucks from $97.00 to $102.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Citigroup increased their price target on shares of Starbucks from $99.00 to $101.00 and gave the company a “neutral” rating in a research note on Wednesday, April 29th. The Goldman Sachs Group downgraded shares of Starbucks from a “neutral” rating to a “neutral” rating in a report on Thursday, May 14th. Finally, Scotiabank lowered shares of Starbucks from a “market perform” rating to an “underperform” rating in a research report on Thursday, May 14th. Nineteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $108.92.

Starbucks Stock Performance

NASDAQ SBUX opened at $102.19 on Monday. The stock’s fifty day moving average is $101.65 and its two-hundred day moving average is $96.13. The firm has a market capitalization of $116.47 billion, a P/E ratio of 77.42, a price-to-earnings-growth ratio of 2.07 and a beta of 0.98. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $108.88.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.44 by $0.06. The business had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The company’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same period last year, the company earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, sell-side analysts forecast that Starbucks will post 2.4 EPS for the current year.

Insider Buying and Selling at Starbucks

In related news, EVP Sara Kelly sold 2,000 shares of the stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the transaction, the executive vice president owned 57,653 shares of the company’s stock, valued at approximately $6,053,565. This represents a 3.35% decrease in their position. The transaction was disclosed in a legal 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. Also, CEO Brady Brewer sold 588 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $100.00, for a total value of $58,800.00. Following the transaction, the chief executive officer owned 79,593 shares of the company’s stock, valued at $7,959,300. This trade represents a 0.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,687 shares of company stock worth $863,707 in the last quarter. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Rachor Investment Advisory Services LLC acquired a new stake in Starbucks during the 4th quarter worth approximately $25,000. Phillip James Consulting Co. acquired a new position in shares of Starbucks in the fourth quarter worth $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Starbucks during the fourth quarter worth $25,000. Entrust Financial LLC purchased a new stake in shares of Starbucks during the fourth quarter worth $26,000. Finally, Financial Freedom LLC raised its stake in shares of Starbucks by 296.2% in the first quarter. Financial Freedom LLC now owns 313 shares of the coffee company’s stock valued at $28,000 after acquiring an additional 234 shares in the last quarter. Hedge funds and other 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.