Zacks Research Downgrades Starbucks (NASDAQ:SBUX) to Strong Sell

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

Other equities analysts have also issued research reports about the company. Dbs Bank lowered Starbucks from a “hold” rating to a “strong sell” rating in a research note on Friday, November 7th. Mizuho upgraded Starbucks to a “hold” rating in a research report on Tuesday, October 28th. Piper Sandler cut their target price on shares of Starbucks from $105.00 to $100.00 and set an “overweight” rating on the stock in a research report on Thursday, October 30th. Morgan Stanley set a $105.00 target price on shares of Starbucks and gave the company an “overweight” rating in a research note on Monday, October 20th. Finally, Royal Bank Of Canada set a $100.00 price target on shares of Starbucks and gave the stock an “outperform” rating in a research report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $101.44.

Starbucks Price Performance

Shares of SBUX opened at $85.25 on Monday. The company has a market capitalization of $96.94 billion, a P/E ratio of 51.98, a PEG ratio of 1.78 and a beta of 0.98. Starbucks has a one year low of $75.50 and a one year high of $117.46. The business’s 50 day simple moving average is $84.84 and its 200-day simple moving average is $87.40.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, October 29th. The coffee company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.55 by ($0.03). The company had revenue of $9.57 billion during the quarter, compared to the consensus estimate 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 last year, the firm earned $0.80 EPS. On average, sell-side analysts anticipate that Starbucks will post 2.99 EPS for the current fiscal year.

Insider Activity at Starbucks

In other news, Director Jorgen Vig Knudstorp purchased 11,700 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The shares were acquired at an average cost of $85.00 per share, for a total transaction of $994,500.00. Following the transaction, the director directly owned 53,096 shares of the company’s stock, valued at approximately $4,513,160. The trade was a 28.26% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. 0.09% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Starbucks

Hedge funds have recently bought and sold shares of the company. Cape Investment Advisory Inc. grew its holdings in shares of Starbucks by 2.1% in the 3rd quarter. Cape Investment Advisory Inc. now owns 14,868 shares of the coffee company’s stock valued at $1,258,000 after buying an additional 309 shares during the period. Triumph Capital Management bought a new position in Starbucks during the third quarter worth about $289,000. AIA Group Ltd lifted its holdings in Starbucks by 13.0% during the third quarter. AIA Group Ltd now owns 129,880 shares of the coffee company’s stock worth $10,988,000 after acquiring an additional 14,955 shares in the last quarter. Painted Porch Advisors LLC grew its stake in Starbucks by 85.2% in the third quarter. Painted Porch Advisors LLC now owns 1,802 shares of the coffee company’s stock valued at $152,000 after acquiring an additional 829 shares during the period. Finally, Saranac Partners Ltd bought a new stake in shares of Starbucks in the third quarter worth about $29,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

More Starbucks News

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

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.