Starbucks (NASDAQ:SBUX) Trading Down 0.1% After Analyst Downgrade

Shares of Starbucks Co. (NASDAQ:SBUXGet Free Report) traded down 0.1% during mid-day trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $92.00 to $90.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Starbucks traded as low as $72.35 and last traded at $72.68. 2,874,515 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 10,300,646 shares. The stock had previously closed at $72.75.

Other equities research analysts also recently issued research reports about the company. DZ Bank downgraded 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. Morgan Stanley cut their price objective on Starbucks from $120.00 to $115.00 and set an “overweight” rating on the stock in a research report on Friday, April 12th. Citigroup cut their price objective on Starbucks from $95.00 to $85.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 1st. Bank of America lifted their target price on shares of Starbucks from $108.00 to $112.00 and gave the company a “buy” rating in a report on Monday, June 10th. Finally, Stifel Nicolaus lowered their target price on shares of Starbucks from $90.00 to $80.00 and set a “hold” rating for the company in a report on Wednesday, May 1st. Seventeen equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $94.46.

Read Our Latest Stock Analysis on SBUX

Insider Activity

In other news, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction dated Monday, April 15th. The shares were sold at an average price of $85.39, for a total transaction of $277,517.50. Following the sale, the chief executive officer now directly owns 81,199 shares in the company, valued at approximately $6,933,582.61. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, CFO Rachel Ruggeri sold 3,750 shares of the firm’s stock in a transaction that occurred on Wednesday, May 22nd. The shares were sold at an average price of $80.00, for a total transaction of $300,000.00. Following the transaction, the chief financial officer now directly owns 65,431 shares of the company’s stock, valued at $5,234,480. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction that occurred on Monday, April 15th. The shares were sold at an average price of $85.39, for a total transaction of $277,517.50. Following the transaction, the chief executive officer now directly owns 81,199 shares in the company, valued at $6,933,582.61. The disclosure for this sale can be found here. In the last three months, insiders have sold 10,750 shares of company stock worth $878,893. 1.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Starbucks

Institutional investors have recently bought and sold shares of the business. Orca Investment Management LLC lifted its stake in shares of Starbucks by 6.6% during the fourth quarter. Orca Investment Management LLC now owns 7,494 shares of the coffee company’s stock worth $719,000 after buying an additional 466 shares during the period. Cerity Partners LLC grew its stake in Starbucks by 481.9% during the 4th quarter. Cerity Partners LLC now owns 1,547,411 shares of the coffee company’s stock valued at $148,567,000 after acquiring an additional 1,281,471 shares in the last quarter. Cox Capital Mgt LLC grew its stake in Starbucks by 41.9% during the 1st quarter. Cox Capital Mgt LLC now owns 45,322 shares of the coffee company’s stock valued at $4,142,000 after acquiring an additional 13,372 shares in the last quarter. Summa Corp. purchased a new stake in Starbucks during the 4th quarter valued at about $384,000. Finally, Brevan Howard Capital Management LP acquired a new position in Starbucks in the 4th quarter valued at about $2,781,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Trading Down 0.3 %

The company has a market capitalization of $82.13 billion, a price-to-earnings ratio of 19.98, a price-to-earnings-growth ratio of 1.63 and a beta of 0.94. The firm’s fifty day simple moving average is $77.87 and its two-hundred day simple moving average is $86.83.

Starbucks (NASDAQ:SBUXGet Free Report) last posted its 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). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The firm had revenue of $8.56 billion during the quarter, compared to analyst estimates of $9.12 billion. During the same quarter in the previous year, the firm earned $0.74 earnings per share. The business’s revenue for the quarter was down 1.8% compared to the same quarter last year. As a group, analysts forecast that Starbucks Co. will post 3.58 EPS for the current fiscal year.

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 30th. Shareholders of record on Friday, August 16th 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 Friday, August 16th. Starbucks’s dividend payout ratio is presently 62.81%.

Starbucks Company Profile

(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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