Starbucks Co. (NASDAQ:SBUX) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shares of Starbucks Co. (NASDAQ:SBUX) have received a consensus recommendation of “Moderate Buy” from the twenty-nine research firms that are presently covering the firm, Marketbeat reports. Three analysts have rated the stock with a sell rating, eight have issued a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $103.77.

A number of brokerages have recently issued reports on SBUX. BMO Capital Markets lifted their price objective on shares of Starbucks from $100.00 to $110.00 and gave the stock an “outperform” rating in a research report on Monday, September 9th. Royal Bank of Canada initiated coverage on shares of Starbucks in a report on Friday, November 15th. They issued an “outperform” rating and a $115.00 price target on the stock. Jefferies Financial Group downgraded Starbucks from a “hold” rating to an “underperform” rating and reduced their price target for the stock from $80.00 to $76.00 in a research report on Tuesday, September 24th. UBS Group raised their price objective on Starbucks from $85.00 to $95.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 23rd. Finally, Stifel Nicolaus upped their target price on Starbucks from $105.00 to $110.00 and gave the company a “buy” rating in a research report on Thursday, October 31st.

Starbucks Stock Up 0.4 %

Shares of NASDAQ:SBUX opened at $92.58 on Wednesday. The company has a market capitalization of $104.97 billion, a price-to-earnings ratio of 27.97, a price-to-earnings-growth ratio of 2.86 and a beta of 0.97. The firm has a 50 day moving average of $96.65 and a 200 day moving average of $90.67. Starbucks has a 52 week low of $71.55 and a 52 week high of $103.32.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.80. Starbucks had a negative return on equity of 46.39% and a net margin of 10.40%. The firm had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.60 billion. During the same period in the prior year, the business posted $1.06 EPS. The firm’s quarterly revenue was down 3.2% on a year-over-year basis. On average, sell-side analysts expect that Starbucks will post 3.11 EPS for the current year.

Starbucks Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 28th. Stockholders of record on Friday, February 14th will be paid a $0.61 dividend. The ex-dividend date of this dividend is Friday, February 14th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.64%. Starbucks’s payout ratio is 73.72%.

Insider Activity at Starbucks

In related news, CFO Rachel Ruggeri sold 1,452 shares of the firm’s stock in a transaction on Friday, November 15th. The shares were sold at an average price of $99.07, for a total transaction of $143,849.64. Following the sale, the chief financial officer now owns 65,648 shares in the company, valued at approximately $6,503,747.36. This trade represents a 2.16 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Starbucks

A number of institutional investors have recently modified their holdings of the business. Wellington Management Group LLP raised its holdings in Starbucks by 100.6% in the 3rd quarter. Wellington Management Group LLP now owns 15,149,937 shares of the coffee company’s stock worth $1,476,967,000 after purchasing an additional 7,598,146 shares during the period. FMR LLC lifted its position in shares of Starbucks by 55.0% during the 3rd quarter. FMR LLC now owns 19,779,859 shares of the coffee company’s stock valued at $1,928,339,000 after buying an additional 7,015,375 shares in the last quarter. Marshall Wace LLP grew its stake in Starbucks by 1,466.3% in the 2nd quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock valued at $260,870,000 after acquiring an additional 3,136,992 shares during the period. Diamond Hill Capital Management Inc. purchased a new stake in Starbucks in the 2nd quarter worth $243,910,000. Finally, Healthcare of Ontario Pension Plan Trust Fund raised its position in Starbucks by 1,078.5% during the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,545,419 shares of the coffee company’s stock worth $248,153,000 after acquiring an additional 2,329,431 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

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.