Wedbush Reaffirms Neutral Rating for Starbucks (NASDAQ:SBUX)

Wedbush reiterated their neutral rating on shares of Starbucks (NASDAQ:SBUX) in a report published on Friday morning, Benzinga reports. They currently have a $81.00 target price on the coffee company’s stock.

Several other equities analysts have also recently issued reports on SBUX. BTIG Research reduced their price objective on Starbucks from $115.00 to $100.00 and set a buy rating for the company in a report on Wednesday, May 1st. Citigroup reduced their price objective on Starbucks from $95.00 to $85.00 and set a neutral rating for the company in a report on Wednesday, May 1st. Wells Fargo & Company reduced their price objective on Starbucks from $105.00 to $90.00 and set an overweight rating for the company in a report on Wednesday, May 1st. HSBC cut their price target on Starbucks from $107.00 to $84.00 and set a hold rating for the company in a report on Friday, May 3rd. Finally, UBS Group cut their price target on Starbucks from $95.00 to $85.00 and set a neutral rating for the company in a report on Wednesday, May 1st. Seventeen investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Starbucks has an average rating of Hold and a consensus price target of $94.54.

Starbucks Price Performance

Starbucks stock opened at $77.85 on Friday. Starbucks has a 1-year low of $71.80 and a 1-year high of $107.66. The company has a market cap of $88.18 billion, a PE ratio of 21.45, a price-to-earnings-growth ratio of 1.70 and a beta of 0.96. The stock’s 50 day moving average price is $79.66 and its 200 day moving average price is $87.95.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The business had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $9.12 billion. During the same quarter last year, the firm earned $0.74 earnings per share. The firm’s quarterly revenue was down 1.8% compared to the same quarter last year. On average, equities research analysts anticipate that Starbucks will post 3.59 EPS for the current fiscal year.

Starbucks Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Friday, August 16th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 2.93%. The ex-dividend date is Friday, August 16th. Starbucks’s payout ratio is 62.81%.

Insider Transactions at Starbucks

In other news, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction dated Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the completion of the sale, the chief executive officer now owns 81,199 shares of the company’s stock, valued at $6,933,582.61. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction that occurred 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 sale, the chief executive officer now owns 81,199 shares in the company, valued at $6,933,582.61. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Rachel Ruggeri sold 3,750 shares of the stock in a transaction that occurred on Wednesday, May 22nd. The stock was sold at an average price of $80.00, for a total value of $300,000.00. Following the sale, the chief financial officer now owns 65,431 shares in the company, valued at $5,234,480. The disclosure for this sale can be found here. Insiders sold 10,750 shares of company stock valued at $878,893 over the last quarter. Company insiders own 1.98% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new position in Starbucks during the 4th quarter valued at $1,240,652,000. Ontario Teachers Pension Plan Board bought a new position in Starbucks during the 1st quarter valued at $415,167,000. Flossbach Von Storch AG boosted its stake in Starbucks by 106.7% during the 1st quarter. Flossbach Von Storch AG now owns 5,612,687 shares of the coffee company’s stock valued at $512,943,000 after purchasing an additional 2,897,282 shares in the last quarter. Capital World Investors bought a new position in Starbucks during the 1st quarter valued at $257,721,000. Finally, Van ECK Associates Corp boosted its stake in shares of Starbucks by 2,624.3% during the 1st quarter. Van ECK Associates Corp now owns 2,150,309 shares of the coffee company’s stock worth $196,516,000 after acquiring an additional 2,071,378 shares in the last quarter. 72.29% of the stock is owned by institutional investors.

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.