Starbucks (NASDAQ:SBUX – Get Free Report) was upgraded by equities research analysts at Robert W. Baird to a “strong-buy” rating in a research report issued on Monday,Zacks.com reports.
SBUX has been the topic of a number of other reports. Wedbush initiated coverage on Starbucks in a research report on Thursday, May 14th. They set an “outperform” rating on the stock. Citigroup lifted their target price on Starbucks from $108.00 to $112.00 and gave the stock a “neutral” rating in a report on Thursday, July 30th. Wells Fargo & Company downgraded Starbucks from an “overweight” rating to an “underweight” rating in a research report on Monday, August 3rd. Royal Bank Of Canada restated a “sector perform” rating and issued a $115.00 price target (up from $110.00) on shares of Starbucks in a research report on Thursday, July 30th. Finally, Jefferies Financial Group initiated coverage on shares of Starbucks in a research note on Thursday, May 14th. They set a “buy” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $110.30.
Get Our Latest Analysis on SBUX
Starbucks Stock Down 1.6%
Starbucks (NASDAQ:SBUX – Get Free Report) last announced its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The firm had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. During the same period in the prior year, the company earned $0.50 EPS. The business’s revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, analysts expect that Starbucks will post 2.64 earnings per share for the current year.
Insider Activity
In related news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total transaction of $236,251.71. Following the completion of the sale, the chief executive officer directly owned 75,135 shares of the company’s stock, valued at approximately $7,963,558.65. This trade represents a 2.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 6,687 shares of company stock worth $681,663. 0.03% of the stock is currently owned by company insiders.
Institutional Trading of Starbucks
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. First Eagle Investment Management LLC lifted its position in shares of Starbucks by 3.8% during the second quarter. First Eagle Investment Management LLC now owns 17,002 shares of the coffee company’s stock worth $1,737,000 after purchasing an additional 626 shares during the last quarter. California State Teachers Retirement System grew its holdings in shares of Starbucks by 10,101.1% in the second quarter. California State Teachers Retirement System now owns 179,138,252 shares of the coffee company’s stock worth $18,306,138,000 after purchasing an additional 177,382,188 shares during the last quarter. Trans Canada Capital Inc. purchased a new position in Starbucks in the 2nd quarter worth about $25,022,000. Ameritas Advisory Services LLC lifted its holdings in Starbucks by 357.9% during the 2nd quarter. Ameritas Advisory Services LLC now owns 18,511 shares of the coffee company’s stock valued at $1,892,000 after buying an additional 14,468 shares in the last quarter. Finally, Wedmont Private Capital lifted its holdings in Starbucks by 9.2% during the 2nd quarter. Wedmont Private Capital now owns 17,457 shares of the coffee company’s stock valued at $1,851,000 after buying an additional 1,467 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.
Key Headlines Impacting Starbucks
Here are the key news stories impacting Starbucks this week:
- Positive Sentiment: Fall menu and promotions support traffic prospects. Starbucks launched its fall menu, including the returning Pumpkin Spice Latte and new seasonal food and beverages. Recent limited-time offerings, including the Unicorn Frappuccino, reportedly generated a 28.5% traffic lift versus a typical Saturday, suggesting menu innovation is helping the “Back to Starbucks” strategy. Starbucks launches fall menu
- Positive Sentiment: Analyst optimism remains intact. Baird initiated coverage with an Outperform rating and a $124 price target, implying additional upside based on expected traffic, margin and execution improvements. Baird initiates coverage on Starbucks
- Neutral Sentiment: Restructuring is continuing. Starbucks plans to eliminate more than 200 corporate positions, primarily in Seattle, while expanding or shifting operations to Nashville. The cuts could improve efficiency and support the $2 billion turnaround, although they also highlight the scale of the company’s operational reset. Starbucks job cuts and Nashville expansion
- Negative Sentiment: Union boycott raises near-term sales risk. Starbucks Workers United, representing more than 12,000 baristas, is urging customers to boycott the chain until management reaches a contract agreement. The timing—at the start of Pumpkin Spice season—could weigh on customer traffic and distract from the turnaround, though the financial impact will depend on the boycott’s participation and duration. Starbucks union calls for boycott
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.
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