Starbucks Corporation (NASDAQ:SBUX) Receives Average Rating of “Moderate Buy” from Brokerages

by · The Cerbat Gem

Shares of Starbucks Corporation (NASDAQ:SBUX – Get Free Report) have been given an average recommendation of “Moderate Buy” by the twenty-nine brokerages that are currently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, sixteen have issued a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $102.56.

SBUX has been the subject of several recent research reports. Mizuho set a $86.00 price target on shares of Starbucks and gave the stock a “neutral” rating in a research note on Friday, January 9th. Dbs Bank downgraded Starbucks from a “hold” rating to a “strong sell” rating in a report on Friday, November 7th. Weiss Ratings reissued a “hold (c-)” rating on shares of Starbucks in a research note on Monday, December 29th. UBS Group set a $94.00 price target on Starbucks and gave the stock a “neutral” rating in a research report on Tuesday, October 21st. Finally, BMO Capital Markets reiterated an “outperform” rating on shares of Starbucks in a research report on Thursday, October 30th.

View Our Latest Stock Report on Starbucks

Starbucks Stock Performance

SBUX traded down $0.29 during midday trading on Friday, hitting $92.99. The stock had a trading volume of 8,907,966 shares, compared to its average volume of 7,322,084. Starbucks has a 1 year low of $75.50 and a 1 year high of $117.46. The business has a fifty day moving average of $86.06 and a 200 day moving average of $87.08. The company has a market cap of $105.74 billion, a P/E ratio of 56.70, a price-to-earnings-growth ratio of 1.96 and a beta of 0.97.

Starbucks (NASDAQ:SBUX – Get Free Report) last posted its quarterly earnings results on Wednesday, October 29th. The coffee company reported $0.52 EPS for the quarter, missing the consensus estimate of $0.55 by ($0.03). Starbucks had a negative return on equity of 31.32% and a net margin of 4.99%.The business had revenue of $9.57 billion for the quarter, compared to analysts’ expectations of $9.41 billion. During the same period last year, the business posted $0.80 earnings per share. The company’s revenue was up 5.5% compared to the same quarter last year. On average, equities research analysts anticipate that Starbucks will post 2.99 earnings per share for the current year.

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be paid a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, February 13th. Starbucks’s dividend payout ratio is 151.22%.

Insider Buying and Selling at Starbucks

In other Starbucks news, Director Jorgen Vig Knudstorp bought 11,700 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The shares were bought at an average cost of $85.00 per share, with a total value of $994,500.00. Following the completion of the purchase, the director directly owned 53,096 shares of the company’s stock, valued at $4,513,160. This trade represents a 28.26% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 0.09% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several hedge funds and other institutional investors have recently modified their holdings of SBUX. PUREfi Wealth LLC bought a new stake in Starbucks in the second quarter worth $286,000. Narwhal Capital Management grew its stake in shares of Starbucks by 39.6% in the 2nd quarter. Narwhal Capital Management now owns 32,738 shares of the coffee company’s stock worth $3,000,000 after buying an additional 9,282 shares in the last quarter. Nordea Investment Management AB increased its holdings in shares of Starbucks by 3.2% in the 3rd quarter. Nordea Investment Management AB now owns 433,112 shares of the coffee company’s stock worth $36,576,000 after buying an additional 13,262 shares during the last quarter. Morningstar Investment Management LLC purchased a new stake in shares of Starbucks during the 2nd quarter valued at about $653,000. Finally, Asset Management One Co. Ltd. lifted its holdings in shares of Starbucks by 3.1% in the 3rd quarter. Asset Management One Co. Ltd. now owns 548,768 shares of the coffee company’s stock valued at $46,426,000 after acquiring an additional 16,428 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Company Profile

(Get Free Report)

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

Read More