Starbucks (SBUX) Rating Lowered to Buy at BidaskClub

Starbucks (NASDAQ:SBUX) was downgraded by equities researchers at BidaskClub from a “strong-buy” rating to a “buy” rating in a report issued on Friday.

A number of other research firms have also recently commented on SBUX. Wedbush reduced their price target on Starbucks from $54.00 to $53.00 and set a “neutral” rating for the company in a report on Friday, July 27th. Barclays reduced their price target on Starbucks from $60.00 to $57.00 and set a “$51.15” rating for the company in a report on Wednesday, July 18th. Zacks Investment Research upgraded Starbucks from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 21st. Royal Bank of Canada cut their price objective on shares of Starbucks to $58.00 and set an “outperform” rating for the company in a research report on Monday, July 16th. They noted that the move was a valuation call. Finally, KeyCorp assumed coverage on shares of Starbucks in a research report on Wednesday, October 3rd. They set an “overweight” rating and a $65.00 price objective for the company. One analyst has rated the stock with a sell rating, twelve have issued a hold rating and eighteen have assigned a buy rating to the company’s stock. Starbucks currently has a consensus rating of “Buy” and an average price target of $62.75.

Starbucks stock traded up $5.69 during midday trading on Friday, reaching $64.32. 45,466,436 shares of the company’s stock were exchanged, compared to its average volume of 13,111,073. Starbucks has a 52 week low of $47.37 and a 52 week high of $65.68. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.76 and a current ratio of 1.01. The stock has a market capitalization of $86.77 billion, a P/E ratio of 26.58, a PEG ratio of 1.75 and a beta of 0.48.

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

In other news, Director Javier G. Teruel sold 166,666 shares of Starbucks 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Rosalind G. Brewer purchased 5,000 shares of the company’s stock in a transaction dated Monday, August 20th. The stock was acquired at an average price of $54.04 per share, with a total value of $270,200.00. Following the completion of the transaction, the insider now owns 7,302 shares of the company’s stock, valued at approximately $394,600.08. The disclosure for this purchase can be found here. Over the last quarter, insiders sold 280,832 shares of company stock valued at $15,052,087. 3.40% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Radnor Capital Management LLC raised its position in Starbucks by 8.7% during the third quarter. Radnor Capital Management LLC now owns 11,264 shares of the coffee company’s stock valued at $640,000 after purchasing an additional 900 shares in the last quarter. Mercer Capital Advisers Inc. raised its position in Starbucks by 5.4% during the third quarter. Mercer Capital Advisers Inc. now owns 18,550 shares of the coffee company’s stock valued at $1,054,000 after purchasing an additional 950 shares in the last quarter. DDD Partners LLC raised its position in Starbucks by 13.3% during the second quarter. DDD Partners LLC now owns 8,317 shares of the coffee company’s stock valued at $406,000 after purchasing an additional 975 shares in the last quarter. Signature Wealth Management Group raised its position in Starbucks by 14.9% during the second quarter. Signature Wealth Management Group now owns 7,574 shares of the coffee company’s stock valued at $370,000 after purchasing an additional 985 shares in the last quarter. Finally, Rathbone Brothers plc raised its position in Starbucks by 10.0% during the third quarter. Rathbone Brothers plc now owns 10,953 shares of the coffee company’s stock valued at $623,000 after purchasing an additional 999 shares in the last quarter. Institutional investors own 71.86% of the company’s stock.

Starbucks Company Profile

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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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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