Starbucks (SBUX) Downgraded by BidaskClub to Buy

BidaskClub cut shares of Starbucks (NASDAQ:SBUX) from a strong-buy rating to a buy rating in a research report sent to investors on Tuesday.

Other research analysts have also issued reports about the stock. BMO Capital Markets upped their target price on shares of Starbucks to $63.00 and gave the company a market perform rating in a report on Friday, December 14th. They noted that the move was a valuation call. Mizuho set a $75.00 price objective on shares of Starbucks and gave the company a buy rating in a research note on Friday, December 14th. Bank of America set a $68.00 price objective on shares of Starbucks and gave the company a buy rating in a research note on Monday, December 10th. Goldman Sachs Group downgraded shares of Starbucks from a buy rating to a neutral rating and dropped their price objective for the company from $75.00 to $68.00 in a research note on Friday, January 11th. Finally, Wells Fargo & Co reaffirmed an outperform rating and set a $73.00 price objective (up previously from $66.00) on shares of Starbucks in a research note on Friday, December 14th. Two equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and sixteen have issued a buy rating to the company. Starbucks currently has a consensus rating of Hold and an average target price of $67.01.

NASDAQ:SBUX opened at $70.74 on Tuesday. The stock has a market capitalization of $87.11 billion, a price-to-earnings ratio of 29.23, a PEG ratio of 2.01 and a beta of 0.50. The company has a debt-to-equity ratio of 7.73, a quick ratio of 1.16 and a current ratio of 1.41. Starbucks has a 12-month low of $47.37 and a 12-month high of $72.18.

Starbucks (NASDAQ:SBUX) last released its earnings results on Thursday, January 24th. The coffee company reported $0.75 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.65 by $0.10. The company had revenue of $6.63 billion for the quarter, compared to analyst estimates of $6.49 billion. Starbucks had a net margin of 11.98% and a return on equity of 193.00%. The firm’s quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.65 EPS. Analysts forecast that Starbucks will post 2.72 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, February 22nd. Investors of record on Thursday, February 7th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.04%. The ex-dividend date of this dividend was Wednesday, February 6th. Starbucks’s dividend payout ratio (DPR) is presently 59.50%.

In related news, EVP Vivek C. Varma sold 50,470 shares of the stock in a transaction that occurred on Friday, February 8th. The shares were sold at an average price of $69.39, for a total transaction of $3,502,113.30. Following the completion of the sale, the executive vice president now owns 118,110 shares of the company’s stock, valued at approximately $8,195,652.90. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Vivek C. Varma sold 70,364 shares of the stock in a transaction that occurred on Wednesday, February 13th. The stock was sold at an average price of $70.05, for a total transaction of $4,928,998.20. Following the sale, the executive vice president now directly owns 138,004 shares of the company’s stock, valued at approximately $9,667,180.20. The disclosure for this sale can be found here. In the last three months, insiders have sold 565,806 shares of company stock valued at $38,789,988. Corporate insiders own 3.98% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Lake Point Wealth Management purchased a new position in Starbucks in the 4th quarter worth approximately $25,000. Highwater Wealth Management LLC purchased a new position in shares of Starbucks during the 4th quarter valued at approximately $28,000. Veritas Investment Management LLP purchased a new position in shares of Starbucks during the 4th quarter valued at approximately $28,000. Mark Sheptoff Financial Planning LLC purchased a new position in shares of Starbucks during the 4th quarter valued at approximately $32,000. Finally, Clean Yield Group purchased a new position in shares of Starbucks during the 4th quarter valued at approximately $33,000. 72.42% of the stock is owned by hedge funds and other 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 beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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