Starbucks’ (SBUX) “Buy” Rating Reaffirmed at Jefferies Financial Group

Jefferies Financial Group restated their buy rating on shares of Starbucks (NASDAQ:SBUX) in a research note issued to investors on Friday morning, The Fly reports. They currently have a $66.00 target price on the coffee company’s stock. Jefferies Financial Group also issued estimates for Starbucks’ Q1 2019 earnings at $0.66 EPS, Q2 2019 earnings at $0.55 EPS, Q3 2019 earnings at $0.71 EPS, Q4 2019 earnings at $0.70 EPS, FY2019 earnings at $2.63 EPS and FY2020 earnings at $3.05 EPS.

Several other analysts have also recently weighed in on SBUX. Wedbush reduced their price target on Starbucks from $54.00 to $53.00 and set a neutral rating on the stock in a report on Friday, July 27th. BidaskClub upgraded Starbucks from a hold rating to a buy rating in a report on Wednesday, September 12th. Bank of America boosted their price target on Starbucks from $57.00 to $64.00 and gave the stock a buy rating in a report on Wednesday, October 10th. Zacks Investment Research cut Starbucks from a hold rating to a sell rating in a report on Friday, September 28th. Finally, ValuEngine upgraded Starbucks from a hold rating to a buy rating in a report on Friday, October 26th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating and nineteen have assigned a buy rating to the company. Starbucks currently has a consensus rating of Buy and a consensus price target of $62.44.

NASDAQ SBUX traded up $5.69 during trading on Friday, hitting $64.32. 45,466,436 shares of the company’s stock were exchanged, compared to its average volume of 13,111,073. The company has a current ratio of 1.01, a quick ratio of 0.76 and a debt-to-equity ratio of 1.54. The company has a market cap of $86.77 billion, a price-to-earnings ratio of 26.58, a PEG ratio of 1.75 and a beta of 0.48. Starbucks has a fifty-two week low of $47.37 and a fifty-two week high of $65.68.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Thursday, November 1st. The coffee company reported $0.62 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.60 by $0.02. The firm had revenue of $6.30 billion during the quarter, compared to the consensus estimate of $6.28 billion. Starbucks had a return on equity of 70.00% and a net margin of 18.28%. The business’s quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.55 earnings per share. On average, sell-side analysts predict that Starbucks will post 2.64 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, November 30th. Investors of record on Thursday, November 15th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 2.24%. Starbucks’s payout ratio is presently 59.50%.

In related news, insider Rosalind G. Brewer bought 5,000 shares of Starbucks stock in a transaction that occurred on Monday, August 20th. The shares were acquired at an average cost of $54.04 per share, for a total transaction of $270,200.00. Following the completion of the acquisition, the insider now directly owns 7,302 shares of the company’s stock, valued at approximately $394,600.08. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Javier G. Teruel sold 166,666 shares of the company’s stock in a transaction that occurred on Friday, August 24th. The shares were sold at an average price of $52.70, for a total value of $8,783,298.20. The disclosure for this sale can be found here. Insiders sold 280,832 shares of company stock worth $15,052,087 over the last quarter. 3.40% of the stock is currently owned by company insiders.

A number of hedge funds have recently made changes to their positions in the stock. Archford Capital Strategies LLC lifted its stake in Starbucks by 669.7% in the second quarter. Archford Capital Strategies LLC now owns 2,186 shares of the coffee company’s stock valued at $107,000 after buying an additional 1,902 shares during the period. Polaris Greystone Financial Group LLC acquired a new position in Starbucks in the third quarter valued at approximately $107,000. Fort L.P. acquired a new position in Starbucks in the second quarter valued at approximately $112,000. Point72 Hong Kong Ltd acquired a new position in Starbucks in the second quarter valued at approximately $115,000. Finally, RPg Family Wealth Advisory LLC lifted its stake in Starbucks by 155.6% in the second quarter. RPg Family Wealth Advisory LLC now owns 2,748 shares of the coffee company’s stock valued at $134,000 after buying an additional 1,673 shares during the period. Institutional investors and hedge funds own 71.86% of the company’s stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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