Starbucks (NASDAQ:SBUX) Stock Gets Price Target Reduction from Mizuho

Starbucks (NASDAQ:SBUX) had its target price cut by Mizuho from $115.00 to $105.00 in a research report report published on Friday morning, MarketBeat reports. They currently have a neutral rating on the coffee company’s stock.

Several other equities analysts also recently commented on SBUX. Royal Bank Of Canada reiterated a “sector perform” rating and set a $115.00 price target (up from $110.00) on shares of Starbucks in a report on Thursday, July 30th. Wells Fargo & Company decreased their price objective on shares of Starbucks from $125.00 to $120.00 and set an “overweight” rating for the company in a research note on Wednesday, October 21st. Rothschild & Co Redburn boosted their target price on Starbucks from $81.00 to $82.00 and gave the company a “sell” rating in a research report on Wednesday, September 30th. Argus boosted their target price on Starbucks from $112.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Piper Sandler upped their target price on Starbucks from $110.00 to $120.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. Twenty-four investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $110.14.

Starbucks Price Performance

NASDAQ SBUX opened at $100.80 on Friday. Starbucks has a 52 week low of $77.99 and a 52 week high of $110.51. The firm has a market capitalization of $114.91 billion, a price-to-earnings ratio of 57.93, a PEG ratio of 1.44 and a beta of 0.98. The company has a fifty day moving average of $99.44 and a two-hundred day moving average of $101.43.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.19. The business had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The business’s revenue for the quarter was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Equities research analysts anticipate that Starbucks will post 2.65 EPS for the current year.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a dividend of $0.63 per share. This is an increase from Starbucks’s previous quarterly dividend of $0.62. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, November 13th. Starbucks’s payout ratio is presently 142.53%.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $105.60, for a total value of $235,382.40. Following the transaction, the chief executive officer owned 73,149 shares of the company’s stock, valued at $7,724,534.40. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock valued at $685,935 in the last quarter. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Meeder Asset Management Inc. bought a new stake in shares of Starbucks during the second quarter valued at approximately $25,000. Black Cypress Capital Management LLC purchased a new stake in shares of Starbucks in the second quarter valued at approximately $27,000. Financial Freedom LLC grew its stake in Starbucks by 296.2% in the first quarter. Financial Freedom LLC now owns 313 shares of the coffee company’s stock worth $28,000 after purchasing an additional 234 shares in the last quarter. Bangor Savings Bank grew its stake in Starbucks by 207.5% in the second quarter. Bangor Savings Bank now owns 326 shares of the coffee company’s stock worth $33,000 after purchasing an additional 220 shares in the last quarter. Finally, BOK Financial Private Wealth Inc. bought a new position in Starbucks in the second quarter worth approximately $34,000. 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: Starbucks is expected to report fiscal fourth-quarter results next week, with analysts anticipating double-digit year-over-year EPS growth. A beat or stronger-than-expected outlook could support the shares, particularly after the company’s previous quarter exceeded earnings and revenue estimates. What to Expect From Starbucks’ Next Earnings Report
• Positive Sentiment: Starbucks China plans to invest approximately 300 million yuan, or $45 million, in staffing and store upgrades. The spending could improve customer service and the store experience, potentially supporting sales and traffic over time. Starbucks China Invests in Store Experience
• Positive Sentiment: The company’s quarterly dividend recently increased to $0.63 per share, reinforcing Starbucks’ appeal to income-oriented investors. The next dividend is scheduled for November 27 for shareholders of record on November 13. Starbucks Dividend Schedule
• Neutral Sentiment: Starbucks China will require customers to make a purchase before using seating areas. The policy may increase seat turnover and store productivity, but it could also affect customer perception; the financial impact is not yet clear. Starbucks China Launches New Rules
• Neutral Sentiment: Reports indicate Starbucks has abandoned a potential Chipotle transaction. Avoiding a costly or distracting acquisition may benefit the turnaround, although investors lose a possible diversification catalyst. Starbucks Ditches Chipotle Deal
• Negative Sentiment: Mizuho lowered its Starbucks price target from $115 to $105 and maintained a neutral rating, signaling limited expected upside at current valuation levels. Wells Fargo has also reduced its target, while the shares trade at a demanding earnings multiple. Mizuho Starbucks Rating
• Negative Sentiment: Polen Capital trimmed its Starbucks position, suggesting that progress from the turnaround is increasingly reflected in the stock’s valuation and that future gains may require stronger fundamental improvement. Polen Capital Trims Starbucks
• Negative Sentiment: CEO Brady Brewer sold 588 shares for $58,800 under a pre-arranged Rule 10b5-1 plan. The transaction was small relative to his remaining holdings, limiting its significance, but insider selling can add modest investor caution. Starbucks CEO Stock Sale

About Starbucks

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.