Starbucks (NASDAQ:SBUX) Trading Down 3.5% on Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) shares were down 3.5% on Thursday after Barclays lowered their price target on the stock from $95.00 to $93.00. Barclays currently has an overweight rating on the stock. Starbucks traded as low as $75.09 and last traded at $75.20. Approximately 2,905,249 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 10,740,833 shares. The stock had previously closed at $77.95.

SBUX has been the subject of several other reports. DZ Bank downgraded shares of Starbucks from a “buy” rating to a “hold” rating and set a $75.00 price objective for the company. in a report on Friday, May 3rd. Morgan Stanley reaffirmed an “overweight” rating and issued a $98.00 price target on shares of Starbucks in a research report on Wednesday. BTIG Research cut their price objective on Starbucks from $115.00 to $100.00 and set a “buy” rating for the company in a research report on Wednesday, May 1st. Evercore ISI downgraded Starbucks from an “outperform” rating to an “inline” rating and dropped their price target for the stock from $92.00 to $80.00 in a research report on Tuesday, July 16th. Finally, Oppenheimer reissued a “market perform” rating on shares of Starbucks in a research report on Friday, April 19th. Seventeen investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $90.88.

Insiders Place Their Bets

In related news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction on Friday, June 14th. The stock was sold at an average price of $80.00, for a total transaction of $260,000.00. Following the completion of the sale, the chief executive officer now directly owns 78,304 shares of the company’s stock, valued at approximately $6,264,320. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, CFO Rachel Ruggeri sold 3,750 shares of the 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 sale, the chief financial officer now directly owns 65,431 shares of the company’s stock, valued at $5,234,480. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction that occurred on Friday, June 14th. The stock was sold at an average price of $80.00, for a total transaction of $260,000.00. Following the completion of the transaction, the chief executive officer now owns 78,304 shares of the company’s stock, valued at approximately $6,264,320. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 7,250 shares of company stock valued at $579,375. 1.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Starbucks

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vima LLC acquired a new stake in Starbucks in the fourth quarter worth about $26,000. Scarborough Advisors LLC bought a new position in shares of Starbucks in the 4th quarter valued at about $26,000. New Millennium Group LLC bought a new position in shares of Starbucks in the 2nd quarter valued at about $26,000. Stephens Consulting LLC raised its stake in shares of Starbucks by 498.2% during the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after buying an additional 279 shares during the last quarter. Finally, DSM Capital Partners LLC bought a new stake in shares of Starbucks during the 4th quarter valued at $27,000. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks Stock Down 4.4 %

The firm has a market cap of $84.40 billion, a P/E ratio of 20.72, a P/E/G ratio of 1.72 and a beta of 0.94. The business has a fifty day moving average of $77.74 and a 200 day moving average of $84.84.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.93. The company had revenue of $9.11 billion for the quarter, compared to analysts’ expectations of $9.25 billion. Starbucks had a net margin of 11.16% and a negative return on equity of 48.78%. The business’s quarterly revenue was down .6% compared to the same quarter last year. During the same period last year, the firm posted $1.00 earnings per share. On average, sell-side analysts expect that Starbucks Co. will post 3.57 EPS for the current fiscal year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Investors of record on Friday, August 16th will be paid a dividend of $0.57 per share. The ex-dividend date is Friday, August 16th. This represents a $2.28 dividend on an annualized basis and a yield of 3.06%. Starbucks’s payout ratio is 62.81%.

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.