Starbucks Co. (NASDAQ:SBUX) – Equities research analysts at Wedbush upped their Q3 2020 earnings per share (EPS) estimates for Starbucks in a note issued to investors on Friday, July 26th. Wedbush analyst N. Setyan now anticipates that the coffee company will post earnings per share of $1.07 for the quarter, up from their previous forecast of $0.93. Wedbush has a “Neutral” rating and a $95.00 price target on the stock. Wedbush also issued estimates for Starbucks’ FY2020 earnings at $3.17 EPS, Q1 2021 earnings at $0.80 EPS, Q2 2021 earnings at $0.59 EPS, Q3 2021 earnings at $1.21 EPS and FY2021 earnings at $3.56 EPS.
Other analysts also recently issued research reports about the stock. Telsey Advisory Group reissued an “outperform” rating and issued a $192.00 price objective (up previously from $189.00) on shares of Deckers Outdoor in a research note on Friday, July 26th. BMO Capital Markets set a $216.00 price target on shares of Stryker and gave the company a “hold” rating in a research note on Friday, July 26th. UBS Group set a €36.00 ($41.86) price target on shares of Siemens Healthineers and gave the company a “neutral” rating in a research note on Monday. Cowen set a $1,500.00 price target on shares of Alphabet and gave the company a “buy” rating in a research note on Friday, July 26th. Finally, KeyCorp boosted their price objective on shares of Tempur Sealy International from $90.00 to $95.00 and gave the stock an “overweight” rating in a research note on Friday, July 26th. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. Starbucks presently has a consensus rating of “Buy” and a consensus price target of $89.53.
Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, July 25th. The coffee company reported $0.78 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.72 by $0.06. The company had revenue of $6.82 billion during the quarter, compared to analyst estimates of $6.67 billion. Starbucks had a negative return on equity of 154.96% and a net margin of 13.63%. The firm’s revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the business posted $0.62 earnings per share.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SBUX. Norges Bank purchased a new stake in shares of Starbucks during the fourth quarter valued at $807,368,000. FMR LLC raised its position in shares of Starbucks by 19.8% in the first quarter. FMR LLC now owns 10,424,208 shares of the coffee company’s stock worth $774,936,000 after acquiring an additional 1,720,231 shares during the period. Legal & General Group Plc raised its position in shares of Starbucks by 1.4% in the fourth quarter. Legal & General Group Plc now owns 6,545,000 shares of the coffee company’s stock worth $421,405,000 after acquiring an additional 91,187 shares during the period. Two Sigma Advisers LP acquired a new position in shares of Starbucks in the fourth quarter worth about $352,796,000. Finally, Dimensional Fund Advisors LP raised its position in shares of Starbucks by 0.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,100,583 shares of the coffee company’s stock worth $264,063,000 after acquiring an additional 20,719 shares during the period. 71.84% of the stock is currently owned by institutional investors and hedge funds.
In other Starbucks news, Director Myron E. Ullman III sold 9,973 shares of Starbucks stock in a transaction on Monday, July 1st. The shares were sold at an average price of $84.64, for a total value of $844,114.72. Following the transaction, the director now directly owns 28,390 shares of the company’s stock, valued at $2,402,929.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider John Culver sold 63,937 shares of Starbucks stock in a transaction on Thursday, May 16th. The stock was sold at an average price of $78.04, for a total transaction of $4,989,643.48. The disclosure for this sale can be found here. Insiders sold 93,883 shares of company stock worth $7,422,903 over the last ninety days. Corporate insiders own 3.98% of the company’s stock.
The company also recently declared a quarterly dividend, which will be paid on Friday, August 23rd. Shareholders of record on Thursday, August 8th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 1.49%. The ex-dividend date is Wednesday, August 7th. Starbucks’s dividend payout ratio is currently 59.50%.
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 beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.
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