Starbucks (NASDAQ:SBUX) Shares Up 2.2% – Still a Buy?

Starbucks Co. (NASDAQ:SBUX) shares shot up 2.2% during mid-day trading on Tuesday . The company traded as high as $86.88 and last traded at $86.22. 3,627,826 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 11,088,196 shares. The stock had previously closed at $84.40.

Analyst Ratings Changes

SBUX has been the subject of several recent research reports. Wall Street Zen cut Starbucks from a “hold” rating to a “sell” rating in a research note on Thursday, May 22nd. Baird R W cut Starbucks from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 7th. Citigroup decreased their price target on Starbucks from $88.00 to $84.00 and set a “neutral” rating for the company in a research note on Wednesday, April 30th. Royal Bank of Canada reissued an “outperform” rating and issued a $95.00 price target on shares of Starbucks in a research note on Friday, May 16th. Finally, Stifel Nicolaus decreased their price target on Starbucks from $103.00 to $92.00 and set a “buy” rating for the company in a research note on Wednesday, April 30th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and sixteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, Starbucks presently has a consensus rating of “Hold” and a consensus price target of $98.72.

Starbucks Price Performance

The stock has a fifty day moving average price of $86.48 and a two-hundred day moving average price of $95.95. The company has a market cap of $98.81 billion, a P/E ratio of 28.07, a price-to-earnings-growth ratio of 3.59 and a beta of 0.99.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Tuesday, April 29th. The coffee company reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.10). The business had revenue of $8.76 billion for 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%. The business’s revenue was up 2.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.68 earnings per share. Equities analysts predict that Starbucks Co. will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Friday, May 16th will be given a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.81%. The ex-dividend date of this dividend is Friday, May 16th. Starbucks’s payout ratio is 88.41%.

Institutional Trading of Starbucks

A number of institutional investors and hedge funds have recently modified their holdings of the business. MBL Wealth LLC purchased a new stake in Starbucks in the first quarter worth $223,000. Acorns Advisers LLC grew its position in shares of Starbucks by 8.6% in the first quarter. Acorns Advisers LLC now owns 3,670 shares of the coffee company’s stock valued at $360,000 after purchasing an additional 290 shares in the last quarter. Flaharty Asset Management LLC bought a new stake in Starbucks during the first quarter valued at $86,000. Strive Asset Management LLC boosted its stake in Starbucks by 4.5% during the first quarter. Strive Asset Management LLC now owns 3,255 shares of the coffee company’s stock valued at $319,000 after buying an additional 141 shares during the period. Finally, Integrity Alliance LLC. bought a new stake in Starbucks during the first quarter worth about $935,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

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.