Wedbush Issues Pessimistic Estimate for Starbucks Earnings

Starbucks Co. (NASDAQ:SBUX) – Investment analysts at Wedbush lowered their FY2024 earnings per share (EPS) estimates for shares of Starbucks in a research report issued on Friday, October 25th. Wedbush analyst N. Setyan now anticipates that the coffee company will earn $3.31 per share for the year, down from their previous forecast of $3.55. Wedbush has a “Neutral” rating and a $80.00 price target on the stock. The consensus estimate for Starbucks’ current full-year earnings is $3.34 per share. Wedbush also issued estimates for Starbucks’ Q2 2025 earnings at $0.71 EPS and Q3 2025 earnings at $1.04 EPS.

SBUX has been the subject of several other reports. BMO Capital Markets boosted their price objective on shares of Starbucks from $100.00 to $110.00 and gave the company an “outperform” rating in a report on Monday, September 9th. Citigroup dropped their price target on Starbucks from $99.00 to $96.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 23rd. Robert W. Baird upgraded Starbucks from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $81.00 to $110.00 in a research note on Tuesday, August 13th. JPMorgan Chase & Co. lifted their target price on Starbucks from $90.00 to $105.00 and gave the stock an “overweight” rating in a report on Monday, September 30th. Finally, BTIG Research increased their price target on shares of Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. Two analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, Starbucks has an average rating of “Moderate Buy” and an average price target of $102.48.

Starbucks Trading Down 0.6 %

NASDAQ:SBUX opened at $97.39 on Monday. Starbucks has a twelve month low of $71.55 and a twelve month high of $107.66. The company has a market cap of $110.36 billion, a PE ratio of 27.28, a P/E/G ratio of 2.59 and a beta of 0.97. The company’s 50 day moving average is $95.68 and its two-hundred day moving average is $85.20.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Tuesday, July 30th. The coffee company reported $0.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.93. The firm had revenue of $9.11 billion for the quarter, compared to the consensus estimate of $9.25 billion. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The company’s revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.00 earnings per share.

Institutional Trading of Starbucks

Institutional investors and hedge funds have recently made changes to their positions in the stock. Founders Financial Securities LLC raised its stake in shares of Starbucks by 2.3% in the 1st quarter. Founders Financial Securities LLC now owns 6,250 shares of the coffee company’s stock valued at $571,000 after acquiring an additional 143 shares during the period. Mirador Capital Partners LP boosted its stake in Starbucks by 7.4% during the 1st quarter. Mirador Capital Partners LP now owns 2,916 shares of the coffee company’s stock valued at $267,000 after purchasing an additional 200 shares during the period. Aviance Capital Partners LLC bought a new position in Starbucks in the 1st quarter worth approximately $330,000. BKM Wealth Management LLC increased its holdings in shares of Starbucks by 276.3% during the first quarter. BKM Wealth Management LLC now owns 2,145 shares of the coffee company’s stock valued at $196,000 after purchasing an additional 1,575 shares during the period. Finally, Miracle Mile Advisors LLC increased its stake in Starbucks by 663.9% during the 1st quarter. Miracle Mile Advisors LLC now owns 52,630 shares of the coffee company’s stock valued at $4,810,000 after buying an additional 45,740 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

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

Starbucks Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Friday, November 15th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, November 15th. This is a boost from Starbucks’s previous quarterly dividend of $0.57. This represents a $2.44 dividend on an annualized basis and a yield of 2.51%. Starbucks’s dividend payout ratio is currently 63.87%.

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.