Starbucks (NASDAQ:SBUX) Trading Down 1.1% – Here’s Why

Shares of Starbucks Co. (NASDAQ:SBUX) were down 1.1% on Wednesday . The company traded as low as $86.31 and last traded at $86.08. Approximately 2,685,225 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 11,083,668 shares. The stock had previously closed at $87.01.

Analyst Ratings Changes

SBUX has been the topic of several research reports. Jefferies Financial Group upgraded Starbucks from an “underperform” rating to a “hold” rating and set a $76.00 price target on the stock in a research report on Wednesday, April 9th. Baird R W downgraded Starbucks from a “strong-buy” rating to a “hold” rating in a report on Monday, April 7th. Robert W. Baird reiterated a “neutral” rating and issued a $85.00 price objective (down previously from $114.00) on shares of Starbucks in a report on Monday, April 7th. Stifel Nicolaus decreased their price objective on Starbucks from $103.00 to $92.00 and set a “buy” rating for the company in a report on Wednesday, April 30th. Finally, Wall Street Zen downgraded Starbucks from a “hold” rating to a “sell” rating in a report on Thursday, May 22nd. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and sixteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, Starbucks currently has an average rating of “Hold” and an average target price of $98.72.

Starbucks Price Performance

The company has a market capitalization of $97.73 billion, a PE ratio of 27.74, a PEG ratio of 3.59 and a beta of 0.99. The firm has a 50-day moving average of $86.24 and a 200 day moving average of $95.89.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Tuesday, April 29th. The coffee company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.10). Starbucks had a net margin of 9.73% and a negative return on equity of 44.97%. The business had revenue of $8.76 billion for the quarter, compared to analysts’ expectations of $8.90 billion. During the same period last year, the business earned $0.68 earnings per share. The company’s quarterly revenue was up 2.3% on a year-over-year basis. Equities analysts expect that Starbucks Co. will post 2.99 EPS for the current year.

Starbucks Dividend Announcement

The company also recently disclosed 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 yield of 2.84%. The ex-dividend date is Friday, May 16th. Starbucks’s dividend payout ratio (DPR) is presently 88.41%.

Institutional Trading of Starbucks

Hedge funds have recently bought and sold shares of the company. University of Texas Texas AM Investment Management Co. purchased a new stake in Starbucks during the fourth quarter valued at $25,000. Hughes Financial Services LLC purchased a new stake in Starbucks during the first quarter valued at $27,000. Financial Life Planners bought a new position in shares of Starbucks in the fourth quarter worth about $25,000. Graney & King LLC bought a new position in shares of Starbucks in the fourth quarter worth about $26,000. Finally, Collier Financial bought a new position in shares of Starbucks in the fourth quarter worth about $27,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

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.