Starbucks (NASDAQ:SBUX) Shares Down 0.2% After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) dropped 0.2% during mid-day trading on Tuesday after Bank of America lowered their price target on the stock from $118.00 to $117.00. Bank of America currently has a buy rating on the stock. Starbucks traded as low as $95.94 and last traded at $96.28. Approximately 674,869 shares were traded during trading, a decline of 94% from the average daily volume of 11,315,588 shares. The stock had previously closed at $96.45.

A number of other brokerages have also weighed in on SBUX. Morgan Stanley lifted their price target on shares of Starbucks from $98.00 to $115.00 and gave the company an “overweight” rating in a report on Wednesday, October 16th. Wedbush reiterated a “neutral” rating and issued a $80.00 price target on shares of Starbucks in a report on Tuesday, August 13th. Baird R W upgraded shares of Starbucks from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 13th. Deutsche Bank Aktiengesellschaft upgraded shares of Starbucks from a “hold” rating to a “buy” rating and lifted their target price for the company from $85.00 to $118.00 in a report on Wednesday, August 14th. Finally, Sanford C. Bernstein upgraded shares of Starbucks from a “market perform” rating to an “outperform” rating and lifted their target price for the company from $92.00 to $115.00 in a report on Thursday, September 26th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $102.40.

Insider Activity

In other Starbucks news, Director Jorgen Vig Knudstorp purchased 380 shares of the firm’s stock in a transaction dated Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, with a total value of $34,770.00. Following the acquisition, the director now owns 36,242 shares of the company’s stock, valued at approximately $3,316,143. This represents a 0.00 % increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. In other Starbucks news, Director Jorgen Vig Knudstorp purchased 380 shares of the firm’s stock in a transaction dated Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, with a total value of $34,770.00. Following the acquisition, the director now owns 36,242 shares of the company’s stock, valued at approximately $3,316,143. This represents a 0.00 % increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Rachel Ruggeri sold 3,290 shares of Starbucks stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $91.16, for a total transaction of $299,916.40. Following the completion of the transaction, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at $5,697,682.32. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.98% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SBUX. AdvisorNet Financial Inc boosted its stake in Starbucks by 45.5% during the 1st quarter. AdvisorNet Financial Inc now owns 2,024 shares of the coffee company’s stock valued at $185,000 after purchasing an additional 633 shares during the period. Global Assets Advisory LLC acquired a new position in Starbucks during the 1st quarter valued at about $3,219,000. Columbus Macro LLC lifted its stake in shares of Starbucks by 17.2% in the 1st 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 period. Sound Income Strategies LLC lifted its stake in shares of Starbucks by 282.5% in the 1st quarter. Sound Income Strategies LLC now owns 9,520 shares of the coffee company’s stock worth $870,000 after acquiring an additional 7,031 shares during the period. Finally, Brookstone Capital Management lifted its stake in shares of Starbucks by 18.7% in the 1st quarter. Brookstone Capital Management now owns 22,345 shares of the coffee company’s stock worth $2,042,000 after acquiring an additional 3,516 shares during the period. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks Stock Performance

The business’s 50 day moving average price is $95.31 and its two-hundred day moving average price is $84.80. The company has a market capitalization of $109.67 billion, a price-to-earnings ratio of 26.67, a price-to-earnings-growth ratio of 2.14 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.93. The company 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 period in the prior year, the business posted $1.00 EPS. On average, sell-side analysts expect that Starbucks Co. will post 3.55 earnings per share 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 2.52%. Starbucks’s dividend payout ratio is currently 62.81%.

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.