Starbucks (NASDAQ:SBUX) Lowered to Underperform at Jefferies Financial Group

Starbucks (NASDAQ:SBUX) was downgraded by stock analysts at Jefferies Financial Group from a “hold” rating to an “underperform” rating in a research report issued to clients and investors on Tuesday, Briefing.com reports. They currently have a $76.00 price target on the coffee company’s stock, down from their prior price target of $80.00. Jefferies Financial Group’s price objective suggests a potential downside of 20.40% from the stock’s previous close.

A number of other equities analysts have also weighed in on SBUX. Barclays upped their price objective on Starbucks from $93.00 to $110.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 14th. Morgan Stanley restated an “overweight” rating and issued a $98.00 price target on shares of Starbucks in a research note on Wednesday, July 31st. BMO Capital Markets lifted their price objective on shares of Starbucks from $100.00 to $110.00 and gave the company an “outperform” rating in a research report on Monday, September 9th. Wedbush restated a “neutral” rating and set a $80.00 target price on shares of Starbucks in a research report on Tuesday, August 13th. Finally, Citigroup raised their target price on shares of Starbucks from $82.00 to $98.00 and gave the company a “neutral” rating in a research note on Wednesday, August 14th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $99.92.

Starbucks Price Performance

Shares of SBUX opened at $95.48 on Tuesday. Starbucks has a one year low of $71.55 and a one year high of $107.66. The business has a fifty day moving average of $87.12 and a 200 day moving average of $84.02. The firm has a market capitalization of $108.15 billion, a P/E ratio of 26.30, a PEG ratio of 2.31 and a beta of 0.96.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, July 30th. The coffee company reported $0.93 EPS for the quarter, meeting the consensus estimate of $0.93. The firm had revenue of $9.11 billion during the quarter, compared to analyst estimates of $9.25 billion. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The business’s revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.00 EPS. Analysts expect that Starbucks will post 3.56 EPS for the current fiscal year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Starbucks

Several large investors have recently added to or reduced their stakes in the stock. Scarborough Advisors LLC purchased a new position in shares of Starbucks during the fourth quarter valued at $26,000. Vima LLC purchased a new position in Starbucks during the 4th quarter valued at about $26,000. Fairman Group LLC purchased a new stake in shares of Starbucks in the 4th quarter worth approximately $30,000. Strategic Investment Solutions Inc. IL bought a new position in shares of Starbucks during the second quarter valued at approximately $25,000. Finally, Raleigh Capital Management Inc. increased its holdings in Starbucks by 150.0% during the fourth quarter. Raleigh Capital Management Inc. now owns 330 shares of the coffee company’s stock valued at $32,000 after buying an additional 198 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

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.