Bank of America Issues Positive Forecast for Starbucks (NASDAQ:SBUX) Stock Price

Starbucks (NASDAQ:SBUX) had its price target upped by Bank of America from $106.00 to $114.00 in a report issued on Wednesday,Benzinga reports. Bank of America currently has a buy rating on the coffee company’s stock.

Several other equities research analysts have also commented on the stock. BTIG Research reiterated a “buy” rating and set a $105.00 price target on shares of Starbucks in a research note on Thursday, October 30th. Royal Bank Of Canada set a $100.00 price objective on shares of Starbucks and gave the company an “outperform” rating in a research note on Thursday, October 30th. Morgan Stanley set a $105.00 target price on Starbucks and gave the stock an “overweight” rating in a research report on Monday, October 20th. Weiss Ratings reissued a “hold (c-)” rating on shares of Starbucks in a report on Monday, December 29th. Finally, Barclays reissued an “overweight” rating and issued a $110.00 target price (up from $95.00) on shares of Starbucks in a research report on Wednesday, January 7th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Starbucks presently has a consensus rating of “Hold” and a consensus price target of $103.15.

Starbucks Stock Performance

NASDAQ:SBUX opened at $96.43 on Wednesday. Starbucks has a 1 year low of $75.50 and a 1 year high of $117.46. The stock has a market cap of $109.65 billion, a P/E ratio of 58.80, a P/E/G ratio of 1.97 and a beta of 0.97. The stock has a 50-day simple moving average of $86.56 and a 200-day simple moving average of $87.08.

Starbucks (NASDAQ:SBUX) last posted its earnings results 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 business had revenue of $9.57 billion for the quarter, compared to analysts’ expectations of $9.41 billion. Starbucks had a negative return on equity of 31.32% and a net margin of 4.99%.Starbucks’s revenue for the quarter was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.80 EPS. On average, equities research analysts predict that Starbucks will post 2.99 EPS for the current year.

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be paid a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, February 13th. Starbucks’s dividend payout ratio is 151.22%.

Insiders Place Their Bets

In other news, Director Jorgen Vig Knudstorp acquired 11,700 shares of the stock in a transaction that occurred on Monday, November 10th. The shares were purchased 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 in the company, valued at approximately $4,513,160. This represents a 28.26% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. 0.09% of the stock is currently owned by company insiders.

Institutional Trading of Starbucks

Several hedge funds have recently made changes to their positions in SBUX. Game Plan Financial Advisors LLC purchased a new stake in shares of Starbucks in the second quarter valued at approximately $25,000. Transce3nd LLC boosted its position in shares of Starbucks by 270.3% during the 2nd quarter. Transce3nd LLC now owns 274 shares of the coffee company’s stock worth $25,000 after purchasing an additional 200 shares in the last quarter. Collier Financial purchased a new stake in shares of Starbucks during the 3rd quarter worth $25,000. Chelsea Counsel Co. acquired a new position in shares of Starbucks during the 2nd quarter worth $26,000. Finally, Y.D. More Investments Ltd purchased a new position in shares of Starbucks in the 3rd quarter valued at about $26,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Bank of America raised its price target on SBUX to $114 and kept a “buy” rating, signaling institutional confidence and providing a clear upside thesis for investors. This analyst upgrade supports demand for the shares. Benzinga: Bank of America raises price target
• Positive Sentiment: Reports indicate Starbucks may have reduced exposure in China by selling a large stake in its Chinese operations; investors interpret this as de‑risking a troubled market and potentially crystallizing value or improving cash flow. That narrative is helping the stock. TipRanks: Starbucks Notches Up as China Proves Troublesome
• Neutral Sentiment: Multiple valuation/idea pieces are highlighting SBUX as a potential opportunity amid the company’s turnaround narrative; these stories raise investor interest but don’t add fresh financial catalysts. Yahoo: Is There Now An Opportunity In Starbucks?
• Neutral Sentiment: Coverage assessing Starbucks’ valuation as its turnaround gains attention provides context for longer‑term investors weighing whether current multiples justify ownership, but it doesn’t change near‑term fundamentals. Yahoo: Assessing Starbucks Valuation
• Neutral Sentiment: Calendar/news reminders note that Starbucks is expected to report earnings this week; the upcoming report increases volatility risk but is itself a routine catalyst. AmericanBankingNews: Starbucks Expected to Announce Earnings
• Negative Sentiment: Zacks highlights analyst expectations for a decline in earnings for the coming quarter and says Starbucks currently lacks the key drivers that typically produce an earnings beat—this raises downside risk into the print. Zacks: Analysts Estimate Decline in Earnings
• Negative Sentiment: Coverage spotlighting an undervalued Chinese rival (Chagee) reminds investors competition in China could pressure market share and margins over time, a potential headwind. Benzinga: Undervalued Chinese Rival Enters Top Tier

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.