Starbucks (NASDAQ:SBUX) Coverage Initiated at Royal Bank of Canada

Royal Bank of Canada initiated coverage on shares of Starbucks (NASDAQ:SBUX) in a research note issued to investors on Friday, MarketBeat reports. The brokerage issued an outperform rating and a $115.00 price target on the coffee company’s stock.

Several other analysts have also recently weighed in on SBUX. JPMorgan Chase & Co. lifted their price target on shares of Starbucks from $90.00 to $105.00 and gave the company an “overweight” rating in a report on Monday, September 30th. Robert W. Baird upgraded shares of Starbucks from a “neutral” rating to an “outperform” rating and lifted their price target for the company from $81.00 to $110.00 in a report on Tuesday, August 13th. Wedbush dropped their target price on shares of Starbucks from $98.00 to $95.00 and set a “neutral” rating on the stock in a report on Thursday, October 31st. Barclays dropped their target price on shares of Starbucks from $110.00 to $108.00 and set an “overweight” rating on the stock in a report on Thursday, October 31st. Finally, Bank of America dropped their target price on shares of Starbucks from $118.00 to $117.00 and set a “buy” rating on the stock in a report on Tuesday, October 22nd. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $102.81.

Starbucks Stock Down 0.8 %

Shares of NASDAQ SBUX opened at $98.42 on Friday. Starbucks has a 52 week low of $71.55 and a 52 week high of $107.66. The firm’s fifty day moving average is $96.75 and its 200 day moving average is $86.26. The company has a market cap of $111.53 billion, a price-to-earnings ratio of 29.73, a PEG ratio of 2.85 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, meeting the consensus estimate of $0.80. The business had revenue of $9.07 billion for the quarter, compared to analysts’ expectations of $9.60 billion. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The firm’s revenue for the quarter was down 3.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.06 earnings per share. Equities research analysts anticipate that Starbucks will post 3.15 earnings per share for the current year.

Starbucks Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 annualized dividend and a dividend yield of 2.48%. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s dividend payout ratio is presently 68.88%.

Insider Buying and Selling

In related news, Director Jorgen Vig Knudstorp bought 380 shares of the firm’s stock in a transaction that occurred on Friday, September 6th. The shares were bought at an average cost of $91.50 per share, with a total value of $34,770.00. Following the acquisition, the director now owns 36,242 shares in the company, valued at $3,316,143. This trade represents a 1.06 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.98% of the stock is currently owned by insiders.

Institutional Trading of Starbucks

Several hedge funds have recently bought and sold shares of the stock. Strategic Investment Solutions Inc. IL bought a new position in shares of Starbucks during the 2nd quarter valued at approximately $25,000. New Millennium Group LLC purchased a new position in Starbucks during the second quarter valued at approximately $26,000. Stephens Consulting LLC boosted its position in shares of Starbucks by 498.2% in the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after purchasing an additional 279 shares during the period. Hobbs Group Advisors LLC purchased a new stake in shares of Starbucks in the second quarter worth $27,000. Finally, Olistico Wealth LLC bought a new stake in shares of Starbucks during the 2nd quarter valued at $31,000. Institutional investors own 72.29% of the company’s stock.

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.