Starbucks (NASDAQ:SBUX) Sets New 1-Year Low After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) hit a new 52-week low during mid-day trading on Tuesday after Piper Sandler lowered their price target on the stock from $88.00 to $85.00. Piper Sandler currently has a neutral rating on the stock. Starbucks traded as low as $72.13 and last traded at $72.58, with a volume of 2279499 shares changing hands. The stock had previously closed at $72.90.

Other equities analysts have also issued reports about the stock. HSBC reduced their price target on shares of Starbucks from $107.00 to $84.00 and set a “hold” rating on the stock in a research report on Friday, May 3rd. DZ Bank lowered Starbucks from a “buy” rating to a “hold” rating and set a $75.00 price target on the stock. in a research report on Friday, May 3rd. UBS Group cut their price objective on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a research report on Wednesday, May 1st. JPMorgan Chase & Co. decreased their target price on Starbucks from $100.00 to $92.00 and set an “overweight” rating on the stock in a report on Wednesday, May 1st. Finally, Oppenheimer reaffirmed a “market perform” rating on shares of Starbucks in a report on Friday, April 19th. Seventeen analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $96.43.

Insider Activity

In related news, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction on Monday, April 15th. The stock was sold at an average price of $85.39, for a total transaction of $277,517.50. Following the completion of the sale, the chief executive officer now directly owns 81,199 shares of the company’s stock, valued at $6,933,582.61. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders have sold a total of 7,250 shares of company stock valued at $651,738 in the last 90 days. 1.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vima LLC bought a new stake in Starbucks during the 4th quarter worth approximately $26,000. Scarborough Advisors LLC acquired a new stake in shares of Starbucks during the fourth quarter worth $26,000. DSM Capital Partners LLC bought a new stake in Starbucks in the 4th quarter valued at $27,000. Riggs Asset Managment Co. Inc. lifted its position in Starbucks by 1,578.9% in the 3rd quarter. Riggs Asset Managment Co. Inc. now owns 319 shares of the coffee company’s stock valued at $29,000 after acquiring an additional 300 shares in the last quarter. Finally, Fairman Group LLC acquired a new position in Starbucks in the 4th quarter worth $30,000. Institutional investors own 72.29% of the company’s stock.

Starbucks Stock Performance

The stock has a market cap of $82.12 billion, a P/E ratio of 19.97, a PEG ratio of 1.58 and a beta of 0.97. The stock has a fifty day simple moving average of $88.03 and a 200-day simple moving average of $93.53.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). The firm had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. Starbucks had a negative return on equity of 49.91% and a net margin of 11.38%. The firm’s quarterly revenue was down 1.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.74 earnings per share. On average, research analysts anticipate that Starbucks Co. will post 3.63 earnings per share for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Stockholders of record on Friday, May 17th will be given a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.14%. The ex-dividend date of this dividend is Thursday, May 16th. Starbucks’s dividend payout ratio is presently 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.