Starbucks (NASDAQ:SBUX) Upgraded to “Hold” at Jefferies Financial Group

Jefferies Financial Group upgraded shares of Starbucks (NASDAQ:SBUX) from an underperform rating to a hold rating in a research note published on Monday morning, Marketbeat reports. The firm currently has $92.00 price target on the coffee company’s stock, up from their previous price target of $86.00.

A number of other research firms have also issued reports on SBUX. Evercore restated an “outperform” rating on shares of Starbucks in a report on Wednesday, January 28th. Bank of America set a $114.00 target price on Starbucks in a report on Wednesday, January 21st. William Blair upgraded Starbucks from a “market perform” rating to an “outperform” rating in a report on Thursday, January 22nd. TD Cowen restated a “hold” rating and issued a $89.00 target price (up from $84.00) on shares of Starbucks in a report on Friday, January 30th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Starbucks in a report on Monday, December 29th. Fifteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $103.67.

Starbucks Stock Up 0.9%

SBUX opened at $97.48 on Monday. The stock has a fifty day moving average of $95.67 and a 200-day moving average of $89.53. The firm has a market capitalization of $111.06 billion, a P/E ratio of 80.56, a PEG ratio of 2.15 and a beta of 0.95. Starbucks has a 12-month low of $75.50 and a 12-month high of $104.82.

Starbucks (NASDAQ:SBUX) last released its earnings results on Wednesday, January 28th. The coffee company reported $0.56 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.03). The business had revenue of $9.92 billion during the quarter, compared to analysts’ expectations of $9.62 billion. Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. Starbucks’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.69 EPS. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. On average, analysts expect that Starbucks will post 2.99 earnings per share for the current fiscal year.

Insider Buying and Selling at Starbucks

In related news, EVP Sara Kelly sold 2,500 shares of the stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $242,800.00. Following the completion of the sale, the executive vice president directly owned 59,609 shares in the company, valued at approximately $5,789,226.08. This trade represents a 4.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brady Brewer sold 1,641 shares of the stock in a transaction on Monday, April 6th. The stock was sold at an average price of $90.00, for a total value of $147,690.00. Following the sale, the chief executive officer owned 84,376 shares of the company’s stock, valued at approximately $7,593,840. This represents a 1.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 6,370 shares of company stock valued at $608,664. 0.03% of the stock is owned by corporate insiders.

Institutional Trading of Starbucks

Several hedge funds and other institutional investors have recently modified their holdings of SBUX. Collier Financial acquired a new position in Starbucks during the third quarter worth $25,000. Rachor Investment Advisory Services LLC acquired a new position in Starbucks during the fourth quarter worth $25,000. Cornerstone Financial Management LLC acquired a new position in Starbucks during the fourth quarter worth $25,000. Phillip James Consulting Co. acquired a new position in Starbucks during the fourth quarter worth $25,000. Finally, Y.D. More Investments Ltd acquired a new position in Starbucks during the third quarter worth $26,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks closed the deal to sell control of its China unit to Boyu, shifting China to a franchised/partnered model — investors see this as a de‑risking step that reduces capital intensity and exposure in a challenging market. Starbucks Sells Control of China Unit to Boyu in Growth Push, Reuters Reports
• Positive Sentiment: Jefferies upgraded SBUX to Hold (from Underperform), citing early signs of stabilization in the U.S. business and the reduced international risk profile after the China JV — a direct catalyst for today’s buying. Starbucks’ China franchise deal improves visibility into turnaround — Jefferies
• Neutral Sentiment: While upgraded, Jefferies raised its price target only to $92 (from $86) — still below the current share price — suggesting the firm sees improved risk but limited near‑term upside at SBUX’s current valuation. Jefferies Upgrades Starbucks to Hold as China Franchise Exit and U.S. Stabilization Improve Visibility
• Negative Sentiment: Competition for cold, fruit‑forward beverages is increasing as McDonald’s rolls out new fruit‑flavored drinks — a headwind for Starbucks’ growing cold‑drink mix and traffic trends. The Battle Over Refreshers Heats Up as McDonald’s Enters the Mix
• Negative Sentiment: Starbucks reported mounting losses in its UK business and cited higher minimum wages and taxes as contributing factors — a reminder that labor and regulatory costs remain a margin risk in certain markets. Starbucks blames minimum wage and taxes for mounting losses

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.