Starbucks (NASDAQ:SBUX) Shares Down 0.3% Following Analyst Downgrade

by · The Cerbat Gem

Starbucks Co. (NASDAQ:SBUX – Get Free Report) shares were down 0.3% on Wednesday after Citigroup lowered their price target on the stock from $99.00 to $96.00. Citigroup currently has a neutral rating on the stock. Starbucks traded as low as $93.69 and last traded at $96.57. Approximately 8,624,725 shares traded hands during trading, a decline of 24% from the average daily volume of 11,329,097 shares. The stock had previously closed at $96.82.

A number of other equities analysts also recently issued reports on SBUX. Stifel Nicolaus cut their price target on shares of Starbucks from $110.00 to $105.00 and set a “buy” rating for the company in a report on Wednesday. Robert W. Baird raised shares of 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. upped their target price on Starbucks from $90.00 to $105.00 and gave the company an “overweight” rating in a research note on Monday, September 30th. Sanford C. Bernstein raised Starbucks from a “market perform” rating to an “outperform” rating and increased their price objective for the company from $92.00 to $115.00 in a research note on Thursday, September 26th. Finally, DZ Bank downgraded 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. Two research analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Starbucks has a consensus rating of “Moderate Buy” and an average target price of $102.48.

Check Out Our Latest Stock Report on Starbucks

Insiders Place Their Bets

In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $94.03, for a total transaction of $305,597.50. Following the completion of the sale, the chief executive officer now owns 75,054 shares in the company, valued at $7,057,327.62. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the 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 transaction, the chief executive officer now directly owns 75,054 shares in the company, valued at $7,057,327.62. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Jorgen Vig Knudstorp bought 380 shares of the company’s stock in a transaction dated Friday, September 6th. The stock was bought at an average cost of $91.50 per share, with a total value of $34,770.00. Following the transaction, the director now directly owns 36,242 shares in the company, valued at approximately $3,316,143. The trade was a 0.00 % increase in their position. The disclosure for this purchase can be found here. 1.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. AdvisorNet Financial Inc raised its position in shares of Starbucks by 45.5% during the 1st quarter. AdvisorNet Financial Inc now owns 2,024 shares of the coffee company’s stock worth $185,000 after purchasing an additional 633 shares during the period. Global Assets Advisory LLC acquired a new position in shares of Starbucks during the first quarter valued at $3,219,000. Columbus Macro LLC grew its position in shares of Starbucks by 17.2% during the first quarter. Columbus Macro LLC now owns 6,437 shares of the coffee company’s stock worth $588,000 after acquiring an additional 947 shares during the last quarter. Sound Income Strategies LLC lifted its position in Starbucks by 282.5% in the 1st quarter. Sound Income Strategies LLC now owns 9,520 shares of the coffee company’s stock valued at $870,000 after purchasing an additional 7,031 shares during the last quarter. Finally, Brookstone Capital Management boosted its stake in Starbucks by 18.7% during the 1st quarter. Brookstone Capital Management now owns 22,345 shares of the coffee company’s stock valued at $2,042,000 after purchasing an additional 3,516 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Trading Down 0.3 %

The firm’s 50-day simple moving average is $95.31 and its 200 day simple moving average is $84.80. The stock has a market cap of $109.38 billion, a P/E ratio of 26.60, a PEG ratio of 2.14 and a beta of 0.97.

Starbucks (NASDAQ:SBUX – Get Free Report) last announced its earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share 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 negative return on equity of 49.38% and a net margin of 11.16%. During the same quarter in the previous year, the business earned $1.00 EPS. The firm’s revenue for the quarter was down .6% on a year-over-year basis. On average, analysts anticipate that Starbucks Co. will post 3.55 EPS for the current year.

Starbucks Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be paid a $0.61 dividend. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.53%. Starbucks’s dividend payout ratio is currently 62.81%.

About Starbucks

(Get Free Report)

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.

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