Wedbush Has Pessimistic View of Starbucks FY2025 Earnings

Starbucks Co. (NASDAQ:SBUX) – Equities research analysts at Wedbush reduced their FY2025 earnings per share estimates for shares of Starbucks in a report issued on Thursday, October 31st. Wedbush analyst N. Setyan now expects that the coffee company will post earnings of $2.88 per share for the year, down from their prior estimate of $3.35. Wedbush currently has a “Neutral” rating and a $95.00 target price on the stock. The consensus estimate for Starbucks’ current full-year earnings is $3.42 per share.

Several other analysts also recently issued reports on the stock. JPMorgan Chase & Co. raised their price objective on shares of Starbucks from $90.00 to $105.00 and gave the stock an “overweight” rating in a research note on Monday, September 30th. Oppenheimer restated a “market perform” rating on shares of Starbucks in a report on Monday, August 26th. Piper Sandler raised Starbucks from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $85.00 to $103.00 in a research report on Tuesday, August 13th. Jefferies Financial Group downgraded Starbucks from a “hold” rating to an “underperform” rating and decreased their target price for the stock from $80.00 to $76.00 in a research report on Tuesday, September 24th. Finally, Barclays cut their price target on shares of Starbucks from $110.00 to $108.00 and set an “overweight” rating on the stock in a report on Thursday. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $103.32.

Starbucks Trading Up 1.2 %

SBUX stock opened at $98.87 on Monday. The stock has a market cap of $112.04 billion, a PE ratio of 29.87, a P/E/G ratio of 2.66 and a beta of 0.97. Starbucks has a 12 month low of $71.55 and a 12 month high of $107.66. The company has a 50-day moving average price of $95.98 and a 200 day moving average price of $85.46.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 EPS for the quarter, hitting the consensus estimate of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The company had revenue of $9.07 billion during the quarter, compared to analyst estimates of $9.60 billion. During the same period in the previous year, the firm earned $1.06 earnings per share. Starbucks’s quarterly revenue was down 3.2% compared to the same quarter last year.

Starbucks Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a $0.61 dividend. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.47%. This is an increase from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s payout ratio is presently 73.72%.

Insider Buying and Selling

In other news, Director Jorgen Vig Knudstorp bought 380 shares of the stock in a transaction on Friday, September 6th. The stock was bought at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the completion of the purchase, the director now directly owns 36,242 shares in the company, valued at approximately $3,316,143. The trade was a 0.00 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, Director Jorgen Vig Knudstorp acquired 380 shares of the business’s stock in a transaction dated Friday, September 6th. The shares were purchased at an average price of $91.50 per share, for a total transaction of $34,770.00. Following the completion of the acquisition, the director now directly owns 36,242 shares in the company, valued at $3,316,143. The trade was a 0.00 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Rachel Ruggeri sold 3,290 shares of the firm’s stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total transaction of $299,916.40. Following the completion of the transaction, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at approximately $5,697,682.32. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. 1.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Starbucks

Large investors have recently bought and sold shares of the company. Quent Capital LLC lifted its position in Starbucks by 9.6% during the first quarter. Quent Capital LLC now owns 4,389 shares of the coffee company’s stock valued at $401,000 after purchasing an additional 385 shares during the period. Salomon & Ludwin LLC lifted its holdings in shares of Starbucks by 11.9% in the 1st quarter. Salomon & Ludwin LLC now owns 2,309 shares of the coffee company’s stock valued at $209,000 after buying an additional 245 shares during the period. Mutual Advisors LLC boosted its stake in shares of Starbucks by 7.0% in the first quarter. Mutual Advisors LLC now owns 45,029 shares of the coffee company’s stock worth $4,115,000 after buying an additional 2,936 shares during the last quarter. Whittier Trust Co. of Nevada Inc. grew its holdings in Starbucks by 0.7% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 51,791 shares of the coffee company’s stock worth $4,733,000 after acquiring an additional 370 shares during the period. Finally, Proficio Capital Partners LLC raised its position in Starbucks by 6.9% during the first quarter. Proficio Capital Partners LLC now owns 8,267 shares of the coffee company’s stock valued at $756,000 after acquiring an additional 531 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.