Starbucks Corporation (SBUX) has recently seen fluctuations in its stock performance as it ended the last trading session at $98.81, reflecting a modest increase of 0.84% from the previous day. This marginal gain stands out when compared against the broader market trends; the S&P 500 dropped by 0.29%, the Dow Jones fell 0.32%, and the tech-heavy Nasdaq saw declines of 0.5%. Over the past month, Starbucks shares have appreciated by 6.67%, outperforming the Retail-Wholesale sector, which grew by 3.53%, and the S&P 500's 2.52% increase.
Investors are eagerly awaiting the company’s upcoming earnings report, scheduled for January 28, 2025. Analysts forecast earnings per share (EPS) of $0.65, which would signify a substantial decrease of 27.78% compared to the same quarter last year. Revenue expectations sit at approximately $9.3 billion, representing a slight decline of 1.3% from the prior year. For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.08 per share and revenue totaling $37.18 billion, reflecting shifts of -6.95% and +2.78%, respectively, from the previous year.
The Zacks Consensus also notes movements within analyst estimates. Recently, there has been a reported 0.93% decrease in the Zacks Consensus EPS estimate, indicating potentially changing sentiments about Starbucks' short-term business prospects. Currently, the company holds a Zacks Rank of #4, classified as 'Sell'. Analysts suggest the forward price-to-earnings (P/E) ratio of 31.79 indicates the stock is trading at a premium relative to the industry average of 23.62.
Institutional investors are actively adjusting their positions as well. Notably, Toth Financial Advisory Corp increased its holdings by 12.6% during the fourth quarter, owning 50,674 shares valued at approximately $4.62 million as of their latest SEC filing. Other funds have also expanded their stakes: the Public Sector Pension Investment Board raised its shares by 73.1%, Fred Alger Management LLC added 3.7%, and MBB Public Markets I LLC increased its stake significantly, growing by 2,424.2% during the same period.
Insider trading activity has also been observed, with CFO Rachel Ruggeri selling 1,452 shares on November 15 at an average price of $99.07, amounting to $143,849.64 from the transaction. After this sale, Ruggeri's remaining ownership is comprised of 65,648 shares worth around $6.5 million.
The stock performance has been relatively stable; the price opened at $98.81 with 1-year metrics showcasing a low of $71.55 and a high at $103.32. The company demonstrates strong market metrics with its current market capitalization at $112.03 billion. Its 50-day and 200-day simple moving averages are reported at $95.66 and $92.25, respectively.
Starbucks’ recent quarterly results disclosed on October 30 showed earnings of $0.80 per share, aligning with analyst expectations. Despite this, total revenue hit $9.07 billion, falling short of forecasts of $9.60 billion and reflecting a 3.2% decline year-over-year. Analysts remain optimistic about Starbucks' future, expecting the business to achieve approximately 3.08 EPS for the current year.
Recent dividend announcements have also attracted attention with the company confirming a payout of $0.61 per share on February 28, 2025, following the record date of February 14. This signals investor confidence, promising an annualized return of $2.44 and yielding 2.47% based on current valuations.
Analysts have varied opinions on the stock as reflected across several reports. For example, UBS Group raised their price objective for Starbucks from $85.00 to $95.00, rating it as 'neutral'. Citigroup similarly lifted their target to $99.00, maintaining a 'neutral' stance, whereas Barclays provided a slightly more bullish outlook with their price target reduced from $110.00 to $108.00, keeping it at 'overweight'. Overall, analysts have assigned Starbucks a 'Moderate Buy' rating based on MarketBeat data, alongside an average target price of $103.92. With more than seven analysts rating the stock as holding and several rated as buying, optimism continues to linger.
Starbucks Corporation remains firmly established as a powerful player globally, not just as the largest coffee chain but also as part of the broader retail market. The company operates through North America, International, and Channel Development segments, offering coffee, tea beverages, and various food items. Its ability to navigate market challenges and analyst expectations will critically determine investor sentiment moving forward.