Starbucks Co. (NASDAQ:SBUX) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Starbucks Co. (NASDAQ:SBUX) have earned a consensus rating of “Moderate Buy” from the twenty-seven research firms that are presently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and sixteen have given a buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $98.72.

SBUX has been the subject of several recent research reports. Argus raised Starbucks from a “hold” rating to a “buy” rating and set a $115.00 price target for the company in a report on Tuesday, March 18th. Robert W. Baird reissued a “neutral” rating and set a $85.00 price target (down from $114.00) on shares of Starbucks in a report on Monday, April 7th. StockNews.com raised Starbucks from a “sell” rating to a “hold” rating in a report on Saturday. Jefferies Financial Group upgraded Starbucks from an “underperform” rating to a “hold” rating and set a $76.00 target price on the stock in a research report on Wednesday, April 9th. Finally, Baird R W cut Starbucks from a “strong-buy” rating to a “hold” rating in a report on Monday, April 7th.

Starbucks Price Performance

Shares of SBUX opened at $80.30 on Tuesday. Starbucks has a 1-year low of $71.55 and a 1-year high of $117.46. The stock has a market cap of $91.25 billion, a PE ratio of 25.90, a price-to-earnings-growth ratio of 3.59 and a beta of 0.99. The firm has a fifty day moving average price of $90.00 and a 200 day moving average price of $96.88.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Tuesday, April 29th. The coffee company reported $0.41 earnings per share for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.10). The firm had revenue of $8.76 billion during the quarter, compared to analysts’ expectations of $8.90 billion. Starbucks had a net margin of 9.73% and a negative return on equity of 44.97%. Starbucks’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.68 EPS. As a group, equities analysts expect that Starbucks will post 2.99 EPS for the current fiscal year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Friday, May 16th will be paid a $0.61 dividend. The ex-dividend date is Friday, May 16th. This represents a $2.44 annualized dividend and a yield of 3.04%. Starbucks’s payout ratio is currently 88.41%.

Institutional Trading of Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. Strategic Financial Concepts LLC purchased a new position in Starbucks during the fourth quarter worth approximately $62,000. Arizona State Retirement System grew its position in Starbucks by 0.8% during the fourth quarter. Arizona State Retirement System now owns 327,459 shares of the coffee company’s stock valued at $29,881,000 after acquiring an additional 2,722 shares during the period. West Michigan Advisors LLC acquired a new stake in Starbucks during the fourth quarter worth about $265,000. Wernau Asset Management Inc. purchased a new position in shares of Starbucks in the 4th quarter worth about $258,000. Finally, OFI Invest Asset Management purchased a new position in shares of Starbucks in the 4th quarter worth about $9,497,000. 72.29% of the stock is owned by institutional investors and hedge funds.

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.