Starbucks (NASDAQ:SBUX) Coverage Initiated by Analysts at Stephens

Analysts at Stephens began coverage on shares of Starbucks (NASDAQ:SBUX) in a report issued on Tuesday, FinViz reports. The firm set an “equal weight” rating and a $39.00 price target on the coffee company’s stock. Stephens‘s price objective indicates a potential downside of 62.64% from the company’s previous close.

SBUX has been the topic of a number of other research reports. Morgan Stanley lowered Starbucks from an “overweight” rating to an “underweight” rating in a report on Monday, August 3rd. Mizuho reduced their target price on Starbucks from $115.00 to $105.00 and set a “neutral” rating for the company in a report on Friday, October 23rd. Raymond James Financial restated an “outperform” rating on shares of Starbucks in a report on Friday, October 9th. William Blair reaffirmed an “outperform” rating on shares of Starbucks in a research report on Friday. Finally, Evercore reiterated an “outperform” rating on shares of Starbucks in a report on Friday. Twenty-one investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $108.74.

Starbucks Trading Up 0.7%

SBUX stock opened at $104.40 on Tuesday. The firm has a market cap of $119.02 billion, a PE ratio of 47.24, a PEG ratio of 1.57 and a beta of 0.98. Starbucks has a 1 year low of $77.99 and a 1 year high of $110.51. The company has a fifty day simple moving average of $99.20 and a 200 day simple moving average of $99.77.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Thursday, October 29th. The coffee company reported $0.80 EPS for the quarter, topping the consensus estimate of $0.72 by $0.08. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The firm had revenue of $9.14 billion for the quarter, compared to the consensus estimate of $9.22 billion. During the same period in the prior year, the business posted $0.52 earnings per share. The business’s quarterly revenue was down 4.5% on a year-over-year basis. As a group, analysts forecast that Starbucks will post 3.21 EPS for the current fiscal year.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 588 shares of the firm’s stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $100.00, for a total value of $58,800.00. Following the sale, the chief executive officer directly owned 70,920 shares in the company, valued at $7,092,000. This trade represents a 0.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 6,687 shares of company stock valued at $685,935. Company insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in Starbucks in the 2nd quarter worth about $8,504,509,000. Bank of America Corp DE purchased a new position in Starbucks in the 2nd quarter worth about $1,581,287,000. Bank of New York Mellon Corp bought a new stake in Starbucks during the 2nd quarter valued at about $779,790,000. Legal & General Group Plc bought a new stake in shares of Starbucks during the second quarter valued at approximately $649,622,000. Finally, Corient Private Wealth LP bought a new stake in Starbucks during the 2nd quarter valued at $289,019,000. Institutional investors own 72.29% of the company’s stock.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: U.S. customers spent 5.2% more per visit last quarter, according to Morgan Stanley. The increase was attributed to higher-priced beverages, food purchases, premium customization and stronger engagement with Starbucks’ loyalty program, reinforcing confidence in the company’s U.S. recovery. Why Morgan Stanley sees customers spending more at Starbucks
• Positive Sentiment: Management reported continued North American growth in customer visits and spending. New menu items, stronger digital engagement and the Green Apron Service operating initiative helped improve same-store sales and margins, supporting the view that Starbucks’ turnaround is gaining traction. Five insightful analyst questions from Starbucks’s earnings call
• Positive Sentiment: Starbucks exceeded earnings expectations with adjusted EPS of $0.80 versus the $0.72 consensus. BTIG reiterated its Buy rating, while a Seeking Alpha analysis argued that the bearish case is weakening as U.S. operations improve. Starbucks Buy Rating Reiterated at BTIG Research
• Neutral Sentiment: Citigroup raised its price target from $104 to $107 but maintained a Neutral rating, suggesting limited near-term upside and a more cautious view of the recovery. Citigroup raises Starbucks price target
• Neutral Sentiment: Starbucks’ decision to reduce employee coverage for GLP-1 weight-loss medications could lower benefit costs, but may create employee-relations and reputational risks. Employers dropping GLP-1 coverage
• Negative Sentiment: Fiscal fourth-quarter revenue fell 4.5% year over year to $9.14 billion and missed Wall Street expectations. Slower international growth—particularly the transition of China operations to a licensed model—offset stronger U.S. performance and remains the main overhang on the stock. Starbucks fiscal fourth-quarter deep dive

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.