Starbucks Co. (NASDAQ:SBUX) Receives Average Rating of “Moderate Buy” from Brokerages

Starbucks Co. (NASDAQ:SBUX) has received an average recommendation of “Moderate Buy” from the twenty-eight brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $103.32.

Several research analysts have recently weighed in on SBUX shares. TD Cowen restated a “buy” rating and issued a $110.00 target price on shares of Starbucks in a research note on Monday. Stifel Nicolaus upped their target price on shares of Starbucks from $105.00 to $110.00 and gave the company a “buy” rating in a research note on Thursday, October 31st. Robert W. Baird upgraded shares of Starbucks from a “neutral” rating to an “outperform” rating and upped their target price for the company from $81.00 to $110.00 in a research note on Tuesday, August 13th. Evercore ISI upgraded shares of Starbucks from an “in-line” rating to an “outperform” rating and upped their target price for the company from $80.00 to $120.00 in a research note on Wednesday, August 14th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Starbucks from a “hold” rating to a “buy” rating and increased their price objective for the company from $85.00 to $118.00 in a research note on Wednesday, August 14th.

Starbucks Stock Performance

Shares of SBUX stock opened at $100.31 on Tuesday. Starbucks has a one year low of $71.55 and a one year high of $107.66. The company has a 50 day moving average price of $96.07 and a 200 day moving average price of $85.77. The firm has a market capitalization of $113.67 billion, a price-to-earnings ratio of 30.31, a price-to-earnings-growth ratio of 2.83 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The company had revenue of $9.07 billion during the quarter, compared to analyst estimates of $9.60 billion. During the same quarter in the prior year, the business earned $1.06 earnings per share. The business’s quarterly revenue was down 3.2% compared to the same quarter last year. As a group, equities analysts forecast that Starbucks will post 3.15 EPS for the current fiscal year.

Starbucks Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be issued a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.43%. The ex-dividend date of this dividend is Friday, November 15th. This is a boost from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s dividend payout ratio (DPR) is 73.72%.

Insider Buying and Selling

In related news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $94.03, for a total value of $305,597.50. Following the sale, the chief executive officer now owns 75,054 shares of the company’s stock, valued at $7,057,327.62. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $94.03, for a total transaction of $305,597.50. Following the transaction, the chief executive officer now owns 75,054 shares of the company’s stock, valued at approximately $7,057,327.62. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jorgen Vig Knudstorp bought 380 shares of the stock in a transaction on Friday, September 6th. The shares were bought at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the purchase, the director now owns 36,242 shares in the company, valued at $3,316,143. This trade represents a 0.00 % increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 1.98% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Large investors have recently bought and sold shares of the stock. LPL Financial LLC grew its stake in shares of Starbucks by 4.6% in the 3rd quarter. LPL Financial LLC now owns 1,948,686 shares of the coffee company’s stock worth $189,977,000 after purchasing an additional 85,255 shares during the last quarter. Cornerstone Advisors LLC grew its stake in shares of Starbucks by 9.4% in the 3rd quarter. Cornerstone Advisors LLC now owns 47,900 shares of the coffee company’s stock worth $4,670,000 after purchasing an additional 4,100 shares during the last quarter. Darwin Wealth Management LLC acquired a new position in shares of Starbucks in the 3rd quarter worth approximately $185,000. Grandfield & Dodd LLC grew its stake in shares of Starbucks by 57.9% in the 3rd quarter. Grandfield & Dodd LLC now owns 45,501 shares of the coffee company’s stock worth $4,436,000 after purchasing an additional 16,683 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Starbucks in the 3rd quarter worth approximately $7,675,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

About Starbucks

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.