William Blair Equities Analysts Cut Earnings Estimates for Starbucks Co. (NASDAQ:SBUX)

Starbucks Co. (NASDAQ:SBUX) – Equities researchers at William Blair reduced their FY2024 earnings per share (EPS) estimates for shares of Starbucks in a note issued to investors on Tuesday, April 16th. William Blair analyst S. Zackfia now forecasts that the coffee company will post earnings of $4.03 per share for the year, down from their previous estimate of $4.07. The consensus estimate for Starbucks’ current full-year earnings is $4.03 per share. William Blair also issued estimates for Starbucks’ Q4 2024 earnings at $1.21 EPS and FY2025 earnings at $4.68 EPS.

Several other equities research analysts also recently weighed in on SBUX. Jefferies Financial Group cut their price target on Starbucks from $100.00 to $94.00 and set a “hold” rating on the stock in a report on Tuesday. JPMorgan Chase & Co. cut their price target on Starbucks from $107.00 to $100.00 and set an “overweight” rating on the stock in a report on Tuesday, March 19th. Robert W. Baird cut their price target on Starbucks from $106.00 to $100.00 and set a “neutral” rating on the stock in a report on Monday, March 18th. Wedbush restated a “neutral” rating and set a $95.00 price target on shares of Starbucks in a report on Wednesday, January 31st. Finally, Gordon Haskett downgraded Starbucks from a “buy” rating to a “hold” rating and set a $100.00 price target on the stock. in a report on Tuesday, January 16th. Thirteen equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $107.43.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $86.21 on Thursday. The stock’s 50-day moving average is $91.33 and its two-hundred day moving average is $94.47. Starbucks has a 1-year low of $84.29 and a 1-year high of $115.48. The company has a market cap of $97.61 billion, a price-to-earnings ratio of 23.05, a price-to-earnings-growth ratio of 1.37 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, January 31st. The coffee company reported $0.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.02). The firm had revenue of $9.43 billion during the quarter, compared to analysts’ expectations of $9.60 billion. Starbucks had a net margin of 11.70% and a negative return on equity of 50.76%. Starbucks’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.75 EPS.

Institutional Trading of Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. Norges Bank acquired a new stake in Starbucks during the 4th quarter worth approximately $1,240,652,000. Moneta Group Investment Advisors LLC raised its stake in shares of Starbucks by 115,334.1% during the 4th quarter. Moneta Group Investment Advisors LLC now owns 8,493,639 shares of the coffee company’s stock worth $842,569,000 after buying an additional 8,486,281 shares in the last quarter. Morgan Stanley raised its stake in shares of Starbucks by 46.3% during the 4th quarter. Morgan Stanley now owns 26,718,368 shares of the coffee company’s stock worth $2,650,462,000 after buying an additional 8,451,599 shares in the last quarter. Flossbach Von Storch AG increased its stake in Starbucks by 8,677.8% in the 4th quarter. Flossbach Von Storch AG now owns 2,715,405 shares of the coffee company’s stock valued at $260,706,000 after purchasing an additional 2,684,470 shares in the last quarter. Finally, Renaissance Technologies LLC purchased a new position in Starbucks in the 1st quarter valued at approximately $190,270,000. 72.29% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Starbucks

In related news, insider Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $94.03, for a total value of $305,597.50. Following the completion of the sale, 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 legal filing with the SEC, which can be accessed through the SEC website. Insiders sold a total of 7,250 shares of company stock valued at $653,183 in the last three months. 1.98% of the stock is currently owned by company insiders.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 17th will be given a $0.57 dividend. The ex-dividend date is Thursday, May 16th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 2.64%. Starbucks’s dividend payout ratio (DPR) is presently 60.96%.

Starbucks Company Profile

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.