Starbucks (NASDAQ:SBUX) Upgraded to Strong-Buy at Robert W. Baird

Robert W. Baird upgraded shares of Starbucks (NASDAQ:SBUX) to a strong-buy rating in a research report report published on Monday morning,Zacks.com reports.

A number of other equities analysts have also recently commented on the stock. BTIG Research reaffirmed a “buy” rating and set a $115.00 price target on shares of Starbucks in a research note on Friday, July 31st. BMO Capital Markets restated an “outperform” rating and set a $130.00 target price on shares of Starbucks in a research report on Thursday, July 30th. Stifel Nicolaus set a $117.00 price target on Starbucks and gave the stock a “buy” rating in a report on Wednesday, May 6th. Citigroup boosted their price objective on Starbucks from $108.00 to $112.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Finally, UBS Group increased their target price on Starbucks from $105.00 to $112.00 and gave the stock a “neutral” rating in a research note on Thursday, July 30th. One 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $110.30.

Starbucks Stock Performance

NASDAQ:SBUX opened at $105.76 on Monday. The firm has a market capitalization of $120.57 billion, a PE ratio of 60.78, a PEG ratio of 1.86 and a beta of 0.97. The stock’s fifty day moving average is $104.65 and its 200 day moving average is $100.59. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $110.51.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, topping 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 company had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.17 billion. During the same period in the previous year, the firm earned $0.50 earnings per share. Starbucks’s quarterly 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. Equities analysts forecast that Starbucks will post 2.64 EPS for the current year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, August 14th. Starbucks’s dividend payout ratio is currently 142.53%.

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction 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 transaction, the chief executive officer owned 75,135 shares in the company, valued at approximately $7,963,558.65. This trade represents a 2.88% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 6,687 shares of company stock worth $681,663. 0.03% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SBUX. Jefferies Financial Group Inc. boosted its holdings in Starbucks by 94.5% in the 4th quarter. Jefferies Financial Group Inc. now owns 94,260 shares of the coffee company’s stock valued at $7,938,000 after purchasing an additional 45,794 shares during the last quarter. Swiss Life Asset Management Ltd lifted its holdings in Starbucks by 20.4% in the fourth quarter. Swiss Life Asset Management Ltd now owns 518,405 shares of the coffee company’s stock valued at $43,655,000 after acquiring an additional 87,926 shares during the last quarter. Norges Bank purchased a new position in Starbucks in the fourth quarter worth approximately $1,232,650,000. Brighton Jones LLC increased its stake in Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock worth $16,126,000 after acquiring an additional 81,952 shares during the last quarter. Finally, Parkside Investments LLC acquired a new position in shares of Starbucks in the 4th quarter valued at $842,000. 72.29% of the stock is currently owned by institutional investors.

Starbucks News Summary

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

About Starbucks

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.