TLDR
- SBUX hit a 52-week high of $109.45, up 30% year-to-date
- Q3 FY2026 EPS came in at $0.85, beating the $0.66 estimate; revenue was $9.32 billion vs. $9.17 billion expected
- Starbucks raised its full-year EPS guidance to $2.55-$2.65
- Price targets raised by DA Davidson ($110), Morgan Stanley ($115), BMO Capital ($130), Evercore ISI ($120), and UBS ($112)
- CEO Brady Brewer sold 2,229 stock at $105.99 each on August 5th under a pre-arranged trading plan
Starbucks (SBUX) hit a 52-week high of $109.45 on August 13, with the stock trading around $109.04. That puts it up 30% year-to-date and roughly 17% over the past 12 months.
The rally follows a strong fiscal Q3 2026 earnings report. Starbucks posted adjusted EPS of $0.85, well ahead of the $0.66 analyst consensus. Revenue came in at $9.32 billion, topping the $9.17 billion estimate.
The one blemish: revenue was down 1.4% compared to the same quarter last year.
U.S. same-store sales grew 8%, a number that caught Wall Street’s attention. Management also raised full-year EPS guidance to $2.55-$2.65, continuing a pattern of upward revisions.
Analysts Lift Price Targets
The earnings beat triggered a wave of price target increases. DA Davidson moved its target to $110. Morgan Stanley went to $115, pointing to the same-store sales number. BMO Capital set the highest target of the group at $130. Evercore ISI landed at $120, citing margin outlook and stronger North America sales estimates. UBS lifted its target from $105 to $112 but kept a “neutral” rating.
Of 34 analysts covering the stock, 19 have a buy rating, 11 have a hold, and four have a sell. The average price target sits at $109.92, just above where the stock is currently trading.
BTIG reiterated its buy rating and $115 target on July 31. Jefferies also holds a buy. Scotiabank, however, downgraded SBUX to underperform back in May.
InvestingPro data flags the stock as potentially overvalued at current levels. The P/E ratio stands at 62.35, and the dividend payout ratio is 142.53%. The stock’s 50-day moving average is $103.24 and its 200-day moving average is $99.84.
Institutional Buying Picks Up
Mission Wealth Management nearly doubled its SBUX position in Q2, buying 17,336 additional stock to bring its total to 34,723, worth around $3.55 million. Several other firms also added to positions during the quarter.
Institutional investors now hold 72.29% of the company’s outstanding stock.
CEO Stock Sale
On August 5th, CEO Brady Brewer sold 2,229 stock at $105.99 each, totaling $236,251. The sale was executed under a pre-arranged Rule 10b5-1 trading plan. Brewer retained 75,135 stock following the transaction. Insiders collectively own just 0.03% of the company.
Starbucks declared a quarterly dividend of $0.62 per share, payable August 28. The ex-dividend date is August 14. That works out to an annualized $2.48 and a yield of roughly 2.3%.
19 analysts have revised their earnings estimates upward for the upcoming period, according to InvestingPro.
