Starbucks (NASDAQ:SBUX) Receives New Coverage from Analysts at Bank of America

Bank of America assumed coverage on shares of Starbucks (NASDAQ:SBUX) in a research note released on Monday, The Fly reports. The brokerage issued a buy rating and a $135.00 price objective on the coffee company’s stock.

A number of other equities analysts have also commented on the company. Stifel Nicolaus lowered their price objective on Starbucks from $135.00 to $130.00 and set a buy rating on the stock in a research note on Monday, September 20th. Wells Fargo & Company assumed coverage on Starbucks in a research note on Sunday, June 20th. They issued a buy rating on the stock. Robert W. Baird reiterated a buy rating on shares of Starbucks in a research note on Wednesday, July 28th. Jefferies Financial Group lifted their price target on Starbucks from $135.00 to $145.00 and gave the company a buy rating in a research note on Wednesday, July 28th. Finally, Piper Sandler lifted their price target on Starbucks from $104.00 to $108.00 and gave the company a neutral rating in a research note on Wednesday, July 28th. Eight equities research analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company’s stock. Based on data from MarketBeat, Starbucks presently has a consensus rating of Buy and a consensus price target of $127.22.

Starbucks stock opened at $110.76 on Monday. The stock’s fifty day moving average price is $115.08 and its two-hundred day moving average price is $114.73. Starbucks has a one year low of $85.45 and a one year high of $126.32. The firm has a market cap of $130.60 billion, a PE ratio of 46.34, a price-to-earnings-growth ratio of 3.06 and a beta of 0.88.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Monday, July 26th. The coffee company reported $1.01 EPS for the quarter, topping the Zacks’ consensus estimate of $0.78 by $0.23. Starbucks had a negative return on equity of 43.16% and a net margin of 10.43%. The firm had revenue of $7.50 billion for the quarter, compared to analyst estimates of $7.26 billion. During the same quarter last year, the company earned ($0.46) EPS. The company’s revenue was up 77.6% on a year-over-year basis. On average, equities analysts expect that Starbucks will post 3.25 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 26th. Stockholders of record on Friday, November 12th will be paid a $0.49 dividend. This represents a $1.96 dividend on an annualized basis and a dividend yield of 1.77%. This is an increase from Starbucks’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Wednesday, November 10th. Starbucks’s payout ratio is currently 153.85%.

In related news, CEO Kevin R. Johnson sold 359,177 shares of the company’s stock in a transaction that occurred on Thursday, July 29th. The stock was sold at an average price of $122.81, for a total transaction of $44,110,527.37. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO John Culver sold 148,619 shares of the business’s stock in a transaction that occurred on Friday, August 6th. The stock was sold at an average price of $119.00, for a total value of $17,685,661.00. The disclosure for this sale can be found here. 0.36% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. Breiter Capital Management Inc. increased its holdings in Starbucks by 13.5% during the 2nd quarter. Breiter Capital Management Inc. now owns 18,805 shares of the coffee company’s stock worth $2,103,000 after purchasing an additional 2,238 shares in the last quarter. Point72 Asset Management L.P. bought a new position in shares of Starbucks in the first quarter valued at approximately $9,365,000. Aptus Capital Advisors LLC lifted its stake in Starbucks by 12.1% in the second quarter. Aptus Capital Advisors LLC now owns 37,674 shares of the coffee company’s stock valued at $4,212,000 after purchasing an additional 4,053 shares during the last quarter. Trexquant Investment LP purchased a new position in Starbucks in the first quarter valued at approximately $4,283,000. Finally, Meridian Wealth Management LLC lifted its stake in Starbucks by 21.5% in the second quarter. Meridian Wealth Management LLC now owns 13,925 shares of the coffee company’s stock valued at $1,557,000 after purchasing an additional 2,463 shares during the last quarter. 68.27% of the stock is owned by hedge funds and other institutional investors.

About Starbucks

Starbucks Corp. engages in the production, marketing, and retailing of specialty coffee. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development. The Americas, CAP, EMEA segments sells coffee and other beverages, complementary food, packaged coffees, single-serve coffee products, and a focused selection of merchandise through company-oriented stores, and licensed stores.

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