Traders Buy Starbucks (SBUX) on Weakness

Traders purchased shares of Starbucks Co. (NASDAQ:SBUX) on weakness during trading hours on Thursday. $115.25 million flowed into the stock on the tick-up and $86.84 million flowed out of the stock on the tick-down, for a money net flow of $28.41 million into the stock. Of all stocks tracked, Starbucks had the 15th highest net in-flow for the day. Starbucks traded down ($0.25) for the day and closed at $51.68

SBUX has been the topic of a number of recent analyst reports. DZ Bank upgraded Starbucks from a “sell” rating to a “hold” rating and reduced their target price for the stock from $52.00 to $48.00 in a report on Friday, July 6th. Zacks Investment Research upgraded Starbucks from a “sell” rating to a “hold” rating in a report on Friday, April 20th. Cowen cut Starbucks from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $68.00 to $65.00 in a report on Friday, April 13th. JPMorgan Chase & Co. cut their price objective on Starbucks from $64.00 to $61.00 and set an “overweight” rating on the stock in a report on Thursday, June 21st. Finally, Piper Jaffray Companies reiterated an “overweight” rating on shares of Starbucks in a report on Friday, April 27th. Two analysts have rated the stock with a sell rating, fourteen have given a hold rating and fifteen have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $59.75.

The stock has a market cap of $72.30 billion, a price-to-earnings ratio of 25.09, a price-to-earnings-growth ratio of 1.55 and a beta of 0.63. The company has a quick ratio of 0.83, a current ratio of 1.09 and a debt-to-equity ratio of 1.31.

Starbucks (NASDAQ:SBUX) last released its earnings results on Thursday, July 26th. The coffee company reported $0.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.02. The firm had revenue of $6.31 billion during the quarter, compared to the consensus estimate of $6.25 billion. Starbucks had a return on equity of 62.96% and a net margin of 18.87%. The company’s revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.55 EPS. equities analysts expect that Starbucks Co. will post 2.41 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, August 24th. Stockholders of record on Thursday, August 9th will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.79%. This is an increase from Starbucks’s previous quarterly dividend of $0.30. The ex-dividend date is Wednesday, August 8th. Starbucks’s dividend payout ratio is presently 58.25%.

Starbucks announced that its board has authorized a share repurchase plan on Thursday, April 26th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the coffee company to repurchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its stock is undervalued.

Several institutional investors have recently bought and sold shares of the company. Fund Evaluation Group LLC acquired a new position in shares of Starbucks during the 2nd quarter worth $946,000. Adviser Investments LLC raised its holdings in shares of Starbucks by 41.6% during the 2nd quarter. Adviser Investments LLC now owns 10,683 shares of the coffee company’s stock worth $522,000 after buying an additional 3,137 shares in the last quarter. Sigma Planning Corp raised its holdings in shares of Starbucks by 10.2% during the 2nd quarter. Sigma Planning Corp now owns 36,847 shares of the coffee company’s stock worth $1,800,000 after buying an additional 3,409 shares in the last quarter. Bbva Compass Bancshares Inc. increased its holdings in Starbucks by 199.1% in the 2nd quarter. Bbva Compass Bancshares Inc. now owns 73,655 shares of the coffee company’s stock worth $3,598,000 after purchasing an additional 49,026 shares in the last quarter. Finally, Leisure Capital Management increased its holdings in Starbucks by 120.8% in the 2nd quarter. Leisure Capital Management now owns 11,269 shares of the coffee company’s stock worth $550,000 after purchasing an additional 6,166 shares in the last quarter. 71.87% 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 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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