Starbucks (NASDAQ:SBUX) Upgraded at Melius Research

Melius Research upgraded shares of Starbucks (NASDAQ:SBUX) from a sell rating to a hold rating in a research note released on Monday, MarketBeat reports.

Other equities research analysts also recently issued reports about the stock. Royal Bank Of Canada reissued a “sector perform” rating and issued a $115.00 price objective (up from $110.00) on shares of Starbucks in a research report on Thursday, July 30th. Citigroup lifted their price objective on shares of Starbucks from $108.00 to $112.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. BMO Capital Markets reiterated an “outperform” rating and set a $130.00 target price on shares of Starbucks in a research note on Thursday, July 30th. Evercore reissued an “outperform” rating on shares of Starbucks in a report on Thursday, July 30th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Starbucks in a report on Monday, July 20th. Nineteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $111.96.

Starbucks Stock Performance

Shares of Starbucks stock opened at $106.00 on Monday. Starbucks has a one year low of $77.99 and a one year high of $109.23. The company has a market cap of $120.84 billion, a PE ratio of 60.92, a P/E/G ratio of 1.81 and a beta of 0.97. The business has a 50-day simple moving average of $102.38 and a 200-day simple moving average of $99.42.

Starbucks (NASDAQ:SBUX) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.19. The firm had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The business’s quarterly revenue was down 1.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, sell-side analysts predict that Starbucks will post 2.64 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 dividend on an annualized basis and a yield of 2.3%. Starbucks’s dividend payout ratio (DPR) is presently 142.53%.

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the company’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $104.00, for a total value of $231,816.00. Following the completion of the transaction, the chief executive officer owned 77,364 shares in the company, valued at approximately $8,045,856. This represents a 2.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 4,458 shares of company stock worth $445,412. 0.03% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Starbucks

Several hedge funds and other institutional investors have recently bought and sold shares of SBUX. Rachor Investment Advisory Services LLC purchased a new position in shares of Starbucks during the fourth quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Starbucks in the 4th quarter valued at about $25,000. Phillip James Consulting Co. acquired a new stake in shares of Starbucks in the 4th quarter valued at about $25,000. Entrust Financial LLC acquired a new stake in shares of Starbucks in the 4th quarter valued at about $26,000. Finally, Tucker Asset Management LLC purchased a new position in Starbucks during the 4th quarter worth approximately $27,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Coverage of Brian Niccol’s turnaround points to improving operating performance and argues that long-term Starbucks investors have been rewarded. The recovery narrative is supporting continued optimism about the company’s growth prospects. Brian Niccol’s Turnaround Is Working, and Starbucks Has Rewarded Long-Term Believers
• Positive Sentiment: Starbucks is bringing back its Pumpkin Spice Latte this month alongside new fall beverages, food and merchandise. The seasonal launch could provide a traffic and sales boost during an important promotional period. Starbucks announces Pumpkin Spice Latte return date
• Positive Sentiment: The company is broadening its menu and reviving a popular customer favorite as it seeks to defend traffic against increasingly aggressive rivals. Starbucks Revives Fan Favorite as Traffic Slips
• Neutral Sentiment: Melius Research raised Starbucks to a “Hold” rating, an improvement in stance but not a bullish recommendation. Another analysis said the business is recovering while warning that the stock may already reflect much of the turnaround. Starbucks Raised to Hold at Melius Research
• Negative Sentiment: Starbucks Korea’s headquarters was reportedly raided in connection with its “Tank Day” marketing campaign, creating potential reputational and regulatory concerns. Starbucks Korea provided a statement in the updated report. Starbucks Korea Headquarters Raided
• Negative Sentiment: Reporting on Niccol’s compensation—more than $120 million since he joined in late 2024—could draw shareholder criticism over pay relative to performance. What makes a CEO worth $31 million a year?
• Negative Sentiment: Analysts and commentators also caution that Starbucks’ recovery may be fully valued, while potential store closures and competition from Dutch Bros could limit future upside.

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.