Starbucks (NASDAQ:SBUX) Hits New 12-Month High – Here’s Why
by Amy Steele · The Cerbat GemStarbucks Corporation (NASDAQ:SBUX – Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $108.04 and last traded at $105.74, with a volume of 6497916 shares traded. The stock had previously closed at $104.93.
Wall Street Analyst Weigh In
A number of brokerages have weighed in on SBUX. Bank of America set a $114.00 price target on Starbucks in a research report on Wednesday, January 21st. William Blair raised Starbucks from a “market perform” rating to an “outperform” rating in a research report on Thursday, January 22nd. JPMorgan Chase & Co. boosted their price target on Starbucks from $95.00 to $100.00 and gave the stock an “overweight” rating in a research report on Friday, April 24th. Stifel Nicolaus set a $117.00 price target on Starbucks and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Finally, UBS Group reissued a “neutral” rating and set a $105.00 price target (up from $100.00) on shares of Starbucks in a research report on Wednesday, April 29th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $107.00.
View Our Latest Stock Report on SBUX
Starbucks Stock Up 0.8%
The firm has a market capitalization of $120.51 billion, a P/E ratio of 80.11, a PEG ratio of 2.12 and a beta of 1.01. The firm has a 50 day moving average of $97.36 and a 200-day moving average of $91.82.
Starbucks (NASDAQ:SBUX – Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.06. The business had revenue of $9.53 billion during the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, research analysts expect that Starbucks Corporation will post 2.41 EPS for the current year.
Starbucks Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be paid a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, May 15th. Starbucks’s payout ratio is 187.88%.
Insider Activity at Starbucks
In related news, EVP Sara Kelly sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total value of $210,000.00. Following the completion of the sale, the executive vice president directly owned 57,653 shares in the company, valued at approximately $6,053,565. The trade was a 3.35% 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. Also, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the sale, the chief executive officer 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 11,187 shares of company stock valued at $1,111,085. 0.03% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Starbucks
Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in Starbucks by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company’s stock worth $9,634,523,000 after purchasing an additional 971,773 shares during the last quarter. Capital Research Global Investors lifted its stake in Starbucks by 11.4% during the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock worth $7,229,968,000 after purchasing an additional 8,774,198 shares during the last quarter. Capital World Investors lifted its stake in Starbucks by 9.0% during the fourth quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock worth $7,135,228,000 after purchasing an additional 7,007,268 shares during the last quarter. State Street Corp lifted its stake in Starbucks by 0.7% during the fourth quarter. State Street Corp now owns 47,869,056 shares of the coffee company’s stock worth $4,031,053,000 after purchasing an additional 327,161 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Starbucks by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock worth $2,212,153,000 after purchasing an additional 225,168 shares during the last quarter. 72.29% of the stock is currently owned by institutional investors.
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.