Starbucks’ (SBUX) Buy Rating Reaffirmed at KeyCorp

KeyCorp reiterated their buy rating on shares of Starbucks (NASDAQ:SBUX) in a research note issued to investors on Thursday. KeyCorp also issued estimates for Starbucks’ Q1 2019 earnings at $0.66 EPS, Q2 2019 earnings at $0.57 EPS, Q3 2019 earnings at $0.70 EPS, Q4 2019 earnings at $0.72 EPS, FY2019 earnings at $2.65 EPS, Q1 2020 earnings at $0.76 EPS, Q2 2020 earnings at $0.66 EPS, Q3 2020 earnings at $0.79 EPS, Q4 2020 earnings at $0.81 EPS and FY2020 earnings at $3.01 EPS.

Several other research firms have also recently weighed in on SBUX. Piper Jaffray Companies cut their price objective on shares of Starbucks to $60.00 and set an overweight rating for the company in a research report on Wednesday, June 20th. Robert W. Baird cut their price objective on shares of Starbucks from $65.00 to $64.00 and set an outperform rating for the company in a research report on Wednesday, June 20th. Royal Bank of Canada cut their price objective on shares of Starbucks to $63.00 and set an outperform rating for the company in a research report on Wednesday, June 20th. They noted that the move was a valuation call. Wedbush cut their price objective on shares of Starbucks from $58.00 to $57.00 and set a neutral rating for the company in a research report on Wednesday, June 20th. Finally, Mizuho cut their price objective on shares of Starbucks from $60.00 to $56.00 and set a neutral rating for the company in a research report on Wednesday, June 20th. One analyst has rated the stock with a sell rating, fourteen have given a hold rating and fifteen have issued a buy rating to the company’s stock. Starbucks has a consensus rating of Hold and a consensus price target of $60.21.

Shares of Starbucks stock opened at $55.76 on Thursday. The stock has a market capitalization of $76.68 billion, a PE ratio of 27.07, a price-to-earnings-growth ratio of 1.69 and a beta of 0.60. Starbucks has a 52-week low of $47.37 and a 52-week high of $61.94. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.01 and a quick ratio of 0.76.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Thursday, July 26th. The coffee company reported $0.62 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.60 by $0.02. Starbucks had a net margin of 18.87% and a return on equity of 67.11%. The company had revenue of $6.31 billion during the quarter, compared to analysts’ expectations of $6.25 billion. During the same quarter in the previous year, the business posted $0.55 earnings per share. Starbucks’s quarterly revenue was up 11.5% on a year-over-year basis. As a group, analysts anticipate that Starbucks will post 2.4 earnings per share for the current year.

In other Starbucks news, Director Javier G. Teruel sold 166,666 shares of the business’s stock in a transaction dated Friday, August 24th. The stock was sold at an average price of $52.70, for a total transaction of $8,783,298.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Myron E. Ullman III sold 15,000 shares of the business’s stock in a transaction dated Friday, August 3rd. The stock was sold at an average price of $52.13, for a total value of $781,950.00. Following the transaction, the director now directly owns 29,000 shares of the company’s stock, valued at approximately $1,511,770. The disclosure for this sale can be found here. In the last three months, insiders have sold 295,832 shares of company stock valued at $15,834,037. Insiders own 3.48% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. Archford Capital Strategies LLC increased its stake in shares of Starbucks by 669.7% in the second quarter. Archford Capital Strategies LLC now owns 2,186 shares of the coffee company’s stock valued at $107,000 after buying an additional 1,902 shares during the period. Fort L.P. acquired a new position in shares of Starbucks in the second quarter valued at approximately $112,000. Point72 Hong Kong Ltd acquired a new position in shares of Starbucks in the second quarter valued at approximately $115,000. RPg Family Wealth Advisory LLC increased its stake in shares of Starbucks by 155.6% in the second quarter. RPg Family Wealth Advisory LLC now owns 2,748 shares of the coffee company’s stock valued at $134,000 after buying an additional 1,673 shares during the period. Finally, Trilogy Capital Inc. acquired a new position in shares of Starbucks in the first quarter valued at approximately $135,000. 71.90% of the stock is owned by institutional investors.

About Starbucks

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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