William Blair Decreases Earnings Estimates for Starbucks

Starbucks Co. (NASDAQ:SBUX) – Stock analysts at William Blair dropped their FY2024 earnings per share estimates for Starbucks in a research note issued on Tuesday, October 22nd. William Blair analyst S. Zackfia now expects that the coffee company will post earnings of $3.31 per share for the year, down from their prior estimate of $3.59. The consensus estimate for Starbucks’ current full-year earnings is $3.55 per share. William Blair also issued estimates for Starbucks’ Q4 2024 earnings at $0.80 EPS, Q1 2025 earnings at $0.71 EPS, FY2025 earnings at $3.25 EPS and FY2026 earnings at $3.73 EPS.

Several other analysts have also weighed in on the company. Piper Sandler raised Starbucks from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $85.00 to $103.00 in a report on Tuesday, August 13th. JPMorgan Chase & Co. boosted their price target on Starbucks from $90.00 to $105.00 and gave the company an “overweight” rating in a report on Monday, September 30th. 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. DZ Bank lowered shares of Starbucks from a “hold” rating to a “sell” rating and set a $85.00 target price for the company. in a research note on Wednesday, August 21st. Finally, Baird R W upgraded shares of Starbucks from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 13th. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Starbucks presently has a consensus rating of “Moderate Buy” and an average price target of $102.48.

Starbucks Price Performance

Shares of SBUX stock opened at $97.15 on Friday. The firm has a market cap of $110.09 billion, a P/E ratio of 27.21, a P/E/G ratio of 2.14 and a beta of 0.97. The firm has a fifty day moving average of $95.38 and a two-hundred day moving average of $84.89. Starbucks has a 1-year low of $71.55 and a 1-year high of $107.66.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, July 30th. The coffee company reported $0.93 EPS for the quarter, meeting the consensus estimate of $0.93. The company 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%. The business’s revenue was down .6% on a year-over-year basis. During the same period in the prior year, the business posted $1.00 EPS.

Starbucks Increases Dividend

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

Insider Buying and Selling

In other news, CEO Rachel Ruggeri sold 3,290 shares of the company’s stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total transaction of $299,916.40. Following the completion of the sale, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at $5,697,682.32. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $94.03, for a total transaction of $305,597.50. Following the sale, the chief executive officer now directly owns 75,054 shares of the company’s stock, valued at $7,057,327.62. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Rachel Ruggeri sold 3,290 shares of the firm’s stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total value of $299,916.40. Following the completion of the sale, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at approximately $5,697,682.32. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders own 1.98% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Several hedge funds have recently bought and sold shares of the business. Strategic Investment Solutions Inc. IL acquired a new position in shares of Starbucks in the 2nd quarter valued at about $25,000. New Millennium Group LLC acquired a new position in Starbucks in the 2nd quarter valued at approximately $26,000. Stephens Consulting LLC lifted its position in Starbucks by 498.2% in the 2nd quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after buying an additional 279 shares in the last quarter. Hobbs Group Advisors LLC acquired a new stake in shares of Starbucks during the 2nd quarter valued at $27,000. Finally, Olistico Wealth LLC purchased a new position in shares of Starbucks during the 2nd quarter valued at $31,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

About Starbucks

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.