Starbucks (NASDAQ:SBUX) Reaches New 52-Week Low on Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) shares hit a new 52-week low on Tuesday after Piper Sandler lowered their price target on the stock from $88.00 to $85.00. Piper Sandler currently has a neutral rating on the stock. Starbucks traded as low as $72.13 and last traded at $72.58, with a volume of 2279499 shares. The stock had previously closed at $72.90.

Several other equities analysts have also recently weighed in on SBUX. Wedbush lowered their target price on Starbucks from $95.00 to $92.00 and set a “neutral” rating on the stock in a research note on Friday, April 26th. UBS Group reduced their price target on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a report on Wednesday, May 1st. Morgan Stanley reduced their price target on Starbucks from $120.00 to $115.00 and set an “overweight” rating for the company in a report on Friday, April 12th. BTIG Research reduced their price target on Starbucks from $115.00 to $100.00 and set a “buy” rating for the company in a report on Wednesday, May 1st. Finally, Stifel Nicolaus reduced their price target on Starbucks from $90.00 to $80.00 and set a “hold” rating for the company in a report on Wednesday, May 1st. Seventeen research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $96.43.

Insiders Place Their Bets

In other Starbucks news, insider Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $94.03, for a total value of $305,597.50. Following the transaction, the insider now directly owns 84,153 shares of the company’s stock, valued at approximately $7,912,906.59. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders have sold a total of 7,250 shares of company stock valued at $651,738 in the last three months. Company insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Institutional investors and hedge funds have recently modified their holdings of the company. Orca Investment Management LLC increased its position in shares of Starbucks by 6.6% during the fourth quarter. Orca Investment Management LLC now owns 7,494 shares of the coffee company’s stock valued at $719,000 after purchasing an additional 466 shares during the period. Cerity Partners LLC increased its position in shares of Starbucks by 481.9% during the fourth quarter. Cerity Partners LLC now owns 1,547,411 shares of the coffee company’s stock valued at $148,567,000 after purchasing an additional 1,281,471 shares during the period. Metis Global Partners LLC grew its position in Starbucks by 15.4% in the third quarter. Metis Global Partners LLC now owns 56,939 shares of the coffee company’s stock valued at $5,197,000 after acquiring an additional 7,619 shares during the period. FFT Wealth Management LLC bought a new stake in Starbucks in the fourth quarter valued at $209,000. Finally, Tyche Wealth Partners LLC bought a new stake in Starbucks in the fourth quarter valued at $794,000. 72.29% of the stock is currently owned by institutional investors.

Starbucks Stock Down 0.8 %

The business has a 50-day simple moving average of $88.46 and a two-hundred day simple moving average of $93.69. The stock has a market capitalization of $81.95 billion, a P/E ratio of 19.93, a PEG ratio of 1.58 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). The company had revenue of $8.56 billion during the quarter, compared to the consensus estimate of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The business’s revenue was down 1.8% on a year-over-year basis. During the same quarter last year, the company earned $0.74 earnings per share. On average, sell-side analysts forecast that Starbucks Co. will post 3.63 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be paid a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a yield of 3.15%. The ex-dividend date is Thursday, May 16th. Starbucks’s dividend payout ratio is currently 62.81%.

About Starbucks

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.