Zacks Research Reduces Earnings Estimates for Starbucks

Starbucks Co. (NASDAQ:SBUX) – Stock analysts at Zacks Research lowered their FY2025 earnings estimates for shares of Starbucks in a report issued on Wednesday, November 20th. Zacks Research analyst H. Ray now anticipates that the coffee company will post earnings per share of $3.11 for the year, down from their prior forecast of $3.56. The consensus estimate for Starbucks’ current full-year earnings is $3.12 per share.

SBUX has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft upgraded shares of Starbucks from a “hold” rating to a “buy” rating and upped their price target for the stock from $85.00 to $118.00 in a research report on Wednesday, August 14th. UBS Group increased their price target on shares of Starbucks from $85.00 to $95.00 and gave the company a “neutral” rating in a research note on Wednesday, October 23rd. TD Cowen reaffirmed a “buy” rating and set a $110.00 price objective on shares of Starbucks in a report on Monday, November 11th. Robert W. Baird raised Starbucks from a “neutral” rating to an “outperform” rating and lifted their target price for the company from $81.00 to $110.00 in a research note on Tuesday, August 13th. Finally, Baird R W raised Starbucks from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 13th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $103.77.

Starbucks Stock Performance

Starbucks stock opened at $100.68 on Monday. Starbucks has a 52 week low of $71.55 and a 52 week high of $103.32. The firm has a market cap of $114.15 billion, a P/E ratio of 30.42, a P/E/G ratio of 3.00 and a beta of 0.97. The business’s fifty day moving average is $97.30 and its two-hundred day moving average is $87.55.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 earnings per share 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 quarter last year, the business posted $1.06 earnings per share. The company’s revenue was down 3.2% on a year-over-year basis.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Friday, November 15th will be issued a dividend of $0.61 per share. This is an increase from Starbucks’s previous quarterly dividend of $0.57. This represents a $2.44 annualized dividend and a yield of 2.42%. The ex-dividend date of this dividend is Friday, November 15th. Starbucks’s dividend payout ratio (DPR) is 73.72%.

Insider Transactions at Starbucks

In other news, CFO Rachel Ruggeri sold 1,491 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $99.54, for a total transaction of $148,414.14. Following the completion of the transaction, the chief financial officer now directly owns 80,124 shares of the company’s stock, valued at $7,975,542.96. This trade represents a 1.83 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jorgen Vig Knudstorp acquired 380 shares of the business’s stock in a transaction dated Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the transaction, the director now owns 36,242 shares of the company’s stock, valued at $3,316,143. This represents a 1.06 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 1.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Starbucks

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SBUX. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Starbucks in the 2nd quarter valued at approximately $25,000. New Millennium Group LLC bought a new position in shares of Starbucks in the 2nd quarter valued at about $26,000. Stephens Consulting LLC increased its stake in shares of Starbucks by 498.2% during the 2nd quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after purchasing an additional 279 shares during the last quarter. Hobbs Group Advisors LLC bought a new stake in shares of Starbucks in the 2nd quarter valued at about $27,000. Finally, Olistico Wealth LLC acquired a new stake in Starbucks in the 2nd quarter valued at about $31,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Company Profile

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.