Starbucks (NASDAQ:SBUX) Stock Rating Lowered by Zacks Research

Starbucks (NASDAQ:SBUX) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on SBUX. Wall Street Zen raised Starbucks from a “sell” rating to a “hold” rating in a research report on Saturday, November 22nd. BTIG Research reiterated a “buy” rating and issued a $105.00 price target on shares of Starbucks in a research note on Thursday, October 30th. Morgan Stanley set a $105.00 price objective on shares of Starbucks and gave the stock an “overweight” rating in a report on Monday, October 20th. Weiss Ratings restated a “hold (c-)” rating on shares of Starbucks in a report on Monday. Finally, Royal Bank Of Canada set a $100.00 target price on shares of Starbucks and gave the company an “outperform” rating in a research report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, Starbucks has a consensus rating of “Hold” and a consensus price target of $101.44.

Starbucks Trading Down 0.4%

Shares of NASDAQ:SBUX opened at $85.25 on Monday. Starbucks has a 52 week low of $75.50 and a 52 week high of $117.46. The company’s 50 day moving average is $84.84 and its two-hundred day moving average is $87.40. The company has a market cap of $96.94 billion, a PE ratio of 51.98, a P/E/G ratio of 1.78 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Wednesday, October 29th. The coffee company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). The firm had revenue of $9.57 billion for the quarter, compared to analyst estimates of $9.41 billion. Starbucks had a negative return on equity of 31.32% and a net margin of 4.99%.The business’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.80 EPS. As a group, equities research analysts expect that Starbucks will post 2.99 EPS for the current year.

Insider Buying and Selling

In other Starbucks news, Director Jorgen Vig Knudstorp purchased 11,700 shares of Starbucks stock in a transaction that occurred on Monday, November 10th. The stock was purchased at an average price of $85.00 per share, for a total transaction of $994,500.00. Following the transaction, the director directly owned 53,096 shares in the company, valued at $4,513,160. This trade represents a 28.26% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.09% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SBUX. Vanguard Group Inc. boosted its stake in shares of Starbucks by 0.5% during the third quarter. Vanguard Group Inc. now owns 113,438,902 shares of the coffee company’s stock worth $9,596,931,000 after buying an additional 577,279 shares during the period. Capital Research Global Investors raised its stake in Starbucks by 11.4% during the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock valued at $7,229,968,000 after acquiring an additional 8,774,198 shares during the last quarter. Capital World Investors lifted its position in Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company’s stock worth $6,575,430,000 after acquiring an additional 1,462,874 shares during the period. State Street Corp grew its stake in shares of Starbucks by 1.2% in the 2nd quarter. State Street Corp now owns 47,513,332 shares of the coffee company’s stock valued at $4,353,647,000 after purchasing an additional 544,534 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Starbucks by 0.4% in the second quarter. Geode Capital Management LLC now owns 25,846,634 shares of the coffee company’s stock valued at $2,357,815,000 after purchasing an additional 99,983 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Key Stores Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks announced a partnership with YouTube star MrBeast that aims to boost brand relevance with younger audiences and drive short‑term traffic/marketing buzz. Article Title
• Positive Sentiment: News that Starbucks is positioning AI as a “co‑pilot” for operations and service lifted sentiment by suggesting potential efficiency gains and labor‑cost mitigation without wholesale job displacement. This narrative has supported recent intraday gains. Article Title
• Positive Sentiment: Coverage suggesting Starbucks has largely blunted unionization progress (management winning the labor battle) supports outlook for margin stability and lower near‑term labor cost risk. Article Title
• Neutral Sentiment: CEO Brian Niccol is steering the brand toward a friendlier, neighborhood “coffee shop” feel — a strategic repositioning that could help traffic but will take time to show in results. Article Title
• Neutral Sentiment: Starbucks is pruning locations in major metros (less emphasis on being on every corner in NYC/LA) and, along with other chains, closed stores in 2025 — a mix of portfolio optimization and demand response. That can improve unit economics over time but signals softer traffic. Article Title
• Negative Sentiment: Technical and sentiment pieces warn SBUX has repeatedly failed breakouts, making it risky for momentum traders and pressuring the stock in the near term. Article Title
• Negative Sentiment: At least one consumer‑stocks roundup lists Starbucks among names to avoid, reflecting bearish analyst commentary on growth and valuation risks (SBUX trades at a premium multiple). Article Title

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.