Wedbush Analysts Reduce Earnings Estimates for Starbucks Co. (NASDAQ:SBUX)

Starbucks Co. (NASDAQ:SBUX) – Wedbush decreased their FY2024 earnings per share (EPS) estimates for Starbucks in a report released on Wednesday, July 31st. Wedbush analyst N. Setyan now forecasts that the coffee company will earn $3.55 per share for the year, down from their previous forecast of $3.61. Wedbush currently has a “Neutral” rating and a $80.00 target price on the stock. The consensus estimate for Starbucks’ current full-year earnings is $3.55 per share. Wedbush also issued estimates for Starbucks’ Q1 2025 earnings at $0.96 EPS, Q2 2025 earnings at $0.79 EPS, Q3 2025 earnings at $1.06 EPS and FY2025 earnings at $3.95 EPS.

Several other analysts have also weighed in on the company. Piper Sandler lowered their target price on Starbucks from $88.00 to $85.00 and set a “neutral” rating on the stock in a report on Monday, May 6th. JPMorgan Chase & Co. lowered their target price on Starbucks from $92.00 to $90.00 and set an “overweight” rating on the stock in a report on Wednesday, July 10th. BTIG Research lowered their target price on Starbucks from $115.00 to $100.00 and set a “buy” rating on the stock in a report on Wednesday, May 1st. William Blair lowered Starbucks from an “outperform” rating to a “market perform” rating in a report on Wednesday, May 1st. Finally, Wells Fargo & Company decreased their price objective on Starbucks from $105.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 1st. Seventeen research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $90.88.

Starbucks Stock Performance

Starbucks stock opened at $75.37 on Monday. The firm has a market capitalization of $85.41 billion, a price-to-earnings ratio of 20.76, a price-to-earnings-growth ratio of 1.76 and a beta of 0.94. Starbucks has a fifty-two week low of $71.55 and a fifty-two week high of $107.66. The stock’s fifty day moving average is $77.51 and its two-hundred day moving average is $84.42.

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

Institutional Investors Weigh In On Starbucks

A number of hedge funds have recently bought and sold shares of SBUX. International Assets Investment Management LLC raised its stake in shares of Starbucks by 4,564.9% in the 4th quarter. International Assets Investment Management LLC now owns 773,811 shares of the coffee company’s stock worth $74,294,000 after buying an additional 757,223 shares in the last quarter. Allworth Financial LP grew its stake in Starbucks by 9.8% in the fourth quarter. Allworth Financial LP now owns 21,890 shares of the coffee company’s stock valued at $2,102,000 after purchasing an additional 1,949 shares in the last quarter. Stratos Wealth Advisors LLC lifted its position in shares of Starbucks by 2.8% in the fourth quarter. Stratos Wealth Advisors LLC now owns 9,268 shares of the coffee company’s stock worth $890,000 after buying an additional 253 shares during the last quarter. DekaBank Deutsche Girozentrale lifted its position in shares of Starbucks by 3.3% in the fourth quarter. DekaBank Deutsche Girozentrale now owns 394,167 shares of the coffee company’s stock worth $37,709,000 after buying an additional 12,635 shares during the last quarter. Finally, Souders Financial Advisors acquired a new stake in shares of Starbucks in the fourth quarter worth about $256,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Insider Transactions at Starbucks

In other news, CFO Rachel Ruggeri sold 3,750 shares of the firm’s stock in a transaction dated Wednesday, May 22nd. The stock was sold at an average price of $80.00, for a total value of $300,000.00. Following the transaction, the chief financial officer now directly owns 65,431 shares in the company, valued at approximately $5,234,480. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, CFO Rachel Ruggeri sold 3,750 shares of the firm’s stock in a transaction dated Wednesday, May 22nd. The stock was sold at an average price of $80.00, for a total transaction of $300,000.00. Following the sale, the chief financial officer now directly owns 65,431 shares in the company, valued at approximately $5,234,480. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Friday, June 14th. The shares were sold at an average price of $80.00, for a total value of $260,000.00. Following the sale, the chief executive officer now owns 78,304 shares in the company, valued at $6,264,320. The disclosure for this sale can be found here. Insiders have sold a total of 7,250 shares of company stock worth $579,375 in the last three months. 1.98% of the stock is currently owned by company insiders.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Friday, August 16th will be issued a $0.57 dividend. The ex-dividend date is Friday, August 16th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.03%. Starbucks’s dividend payout ratio (DPR) is 62.81%.

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.