Starbucks (NASDAQ:SBUX) Reaches New 52-Week High – Still a Buy?

Shares of Starbucks Corporation (NASDAQ:SBUX) hit a new 52-week high on Wednesday . The company traded as high as $107.55 and last traded at $107.3990, with a volume of 4750942 shares. The stock had previously closed at $104.94.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on SBUX shares. Tigress Financial started coverage on Starbucks in a report on Wednesday, April 15th. They issued a “buy” rating and a $122.00 target price for the company. Wells Fargo & Company reaffirmed an “overweight” rating and set a $115.00 price target (up from $110.00) on shares of Starbucks in a research note on Wednesday, April 29th. BMO Capital Markets reiterated an “outperform” rating and issued a $120.00 price target on shares of Starbucks in a report on Friday, January 30th. Citizens Jmp initiated coverage on shares of Starbucks in a research note on Monday, March 30th. They issued an “underperform” rating and a $84.00 price objective for the company. Finally, Jefferies Financial Group raised shares of Starbucks from an “underperform” rating to a “hold” rating in a report on Tuesday, April 28th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $107.00.

Starbucks Stock Up 0.6%

The company has a market cap of $119.55 billion, a price-to-earnings ratio of 79.49, a price-to-earnings-growth ratio of 2.11 and a beta of 1.01. The company has a fifty day simple moving average of $97.07 and a two-hundred day simple moving average of $91.54.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06. The business had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business’s revenue was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, research analysts predict that Starbucks Corporation will post 2.41 EPS for the current year.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be given a $0.62 dividend. The ex-dividend date is Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. Starbucks’s dividend payout ratio is currently 187.88%.

Insider Buying and Selling

In other Starbucks news, EVP Sara Kelly sold 2,500 shares of the firm’s stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $242,800.00. Following the completion of the transaction, the executive vice president owned 59,609 shares of the company’s stock, valued at approximately $5,789,226.08. This trade represents a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the transaction, the chief executive officer directly owned 81,559 shares of the company’s stock, valued at approximately $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 11,187 shares of company stock valued at $1,111,085. Corporate insiders own 0.03% of the company’s stock.

Institutional Trading of Starbucks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Oslo Pensjonsforsikring AS purchased a new stake in shares of Starbucks during the first quarter worth about $183,000. Long Road Investment Counsel LLC lifted its stake in shares of Starbucks by 5.5% during the first quarter. Long Road Investment Counsel LLC now owns 68,570 shares of the coffee company’s stock valued at $6,143,000 after buying an additional 3,600 shares during the period. Florida Financial Advisors LLC boosted its position in Starbucks by 5.7% during the first quarter. Florida Financial Advisors LLC now owns 3,401 shares of the coffee company’s stock worth $305,000 after acquiring an additional 183 shares during the last quarter. Beta Wealth Group Inc. boosted its position in Starbucks by 1.7% during the first quarter. Beta Wealth Group Inc. now owns 6,114 shares of the coffee company’s stock worth $548,000 after acquiring an additional 103 shares during the last quarter. Finally, Paul R. Ried Financial Group LLC grew its stake in Starbucks by 0.9% in the 1st quarter. Paul R. Ried Financial Group LLC now owns 21,641 shares of the coffee company’s stock worth $1,939,000 after acquiring an additional 185 shares during the period. Hedge funds and other institutional investors own 72.29% of the company’s stock.

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.