Starbucks (NASDAQ:SBUX) Trading Down 1.6% After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s stock price traded down 1.6% on Friday after HSBC lowered their price target on the stock from $107.00 to $84.00. HSBC currently has a hold rating on the stock. Starbucks traded as low as $73.74 and last traded at $73.75. 5,875,128 shares changed hands during trading, a decline of 37% from the average session volume of 9,268,319 shares. The stock had previously closed at $74.93.

Several other brokerages also recently issued reports on SBUX. Robert W. Baird dropped their target price on shares of Starbucks from $106.00 to $100.00 and set a “neutral” rating on the stock in a research note on Monday, March 18th. Jefferies Financial Group reduced their target price on Starbucks from $94.00 to $84.00 and set a “hold” rating for the company in a report on Wednesday. Oppenheimer reaffirmed a “market perform” rating on shares of Starbucks in a report on Friday, April 19th. TD Cowen reduced their price objective on Starbucks from $100.00 to $85.00 and set a “hold” rating for the company in a report on Wednesday. Finally, Piper Sandler lowered their target price on shares of Starbucks from $107.00 to $100.00 and set a “neutral” rating on the stock in a research note on Friday, January 19th. Seventeen analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $97.09.

Insider Buying and Selling at Starbucks

In other Starbucks news, insider Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $94.03, for a total transaction of $305,597.50. Following the transaction, the insider now owns 84,153 shares of the company’s stock, valued at approximately $7,912,906.59. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold a total of 7,250 shares of company stock valued at $651,738 in the last ninety days. Corporate insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

A number of institutional investors have recently made changes to their positions in the business. Stratos Wealth Advisors LLC raised its stake in shares of Starbucks by 38.5% during the 3rd quarter. Stratos Wealth Advisors LLC now owns 9,015 shares of the coffee company’s stock valued at $823,000 after buying an additional 2,506 shares during the last quarter. Baker Ellis Asset Management LLC boosted its position in Starbucks by 1.9% in the 3rd quarter. Baker Ellis Asset Management LLC now owns 5,859 shares of the coffee company’s stock worth $535,000 after purchasing an additional 108 shares in the last quarter. Groesbeck Investment Management Corp NJ grew its stake in shares of Starbucks by 15.5% during the 3rd quarter. Groesbeck Investment Management Corp NJ now owns 4,727 shares of the coffee company’s stock worth $431,000 after purchasing an additional 633 shares during the period. Sage Mountain Advisors LLC increased its holdings in shares of Starbucks by 19.4% during the 3rd quarter. Sage Mountain Advisors LLC now owns 8,668 shares of the coffee company’s stock valued at $791,000 after purchasing an additional 1,407 shares in the last quarter. Finally, Sawyer & Company Inc lifted its stake in shares of Starbucks by 0.7% in the 3rd quarter. Sawyer & Company Inc now owns 30,082 shares of the coffee company’s stock valued at $2,746,000 after purchasing an additional 208 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Stock Down 2.4 %

The company’s 50-day moving average is $89.34 and its 200 day moving average is $93.98. The company has a market cap of $82.81 billion, a price-to-earnings ratio of 20.14, a price-to-earnings-growth ratio of 1.28 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing the consensus estimate of $0.79 by ($0.11). The business had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. Starbucks’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.74 EPS. Analysts predict that Starbucks Co. will post 3.89 EPS for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Stockholders of record on Friday, May 17th will be issued a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.12%. The ex-dividend date is Thursday, May 16th. Starbucks’s payout ratio is 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.