TD Cowen Reiterates Buy Rating for Starbucks (NASDAQ:SBUX)

TD Cowen reissued their buy rating on shares of Starbucks (NASDAQ:SBUX) in a research report report published on Monday morning,Benzinga reports. They currently have a $110.00 price objective on the coffee company’s stock.

Several other research firms have also recently weighed in on SBUX. Oppenheimer restated a “market perform” rating on shares of Starbucks in a research report on Monday, August 26th. Morgan Stanley raised their price objective on shares of Starbucks from $98.00 to $115.00 and gave the company an “overweight” rating in a research report on Wednesday, October 16th. BTIG Research upped their target price on shares of Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a research report on Thursday, October 17th. Evercore ISI raised Starbucks from an “in-line” rating to an “outperform” rating and increased their target price for the company from $80.00 to $120.00 in a research note on Wednesday, August 14th. Finally, Jefferies Financial Group cut Starbucks from a “hold” rating to an “underperform” rating and cut their price objective for the stock from $80.00 to $76.00 in a report on Tuesday, September 24th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $102.31.

Starbucks Trading Down 0.6 %

SBUX stock opened at $99.23 on Monday. The firm has a 50 day moving average of $96.45 and a 200-day moving average of $86.03. The firm has a market capitalization of $112.45 billion, a P/E ratio of 29.98, a price-to-earnings-growth ratio of 2.89 and a beta of 0.97. Starbucks has a 12 month low of $71.55 and a 12 month high of $107.66.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Wednesday, October 30th. The coffee company reported $0.80 EPS for the quarter, meeting the consensus estimate of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The firm had revenue of $9.07 billion during the quarter, compared to the consensus estimate of $9.60 billion. During the same period last year, the firm earned $1.06 EPS. The business’s quarterly revenue was down 3.2% compared to the same quarter last year. Sell-side analysts predict that Starbucks will post 3.15 EPS for the current year.

Starbucks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Friday, November 15th will be issued a dividend of $0.61 per share. This is an increase from Starbucks’s previous quarterly dividend of $0.57. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.46%. Starbucks’s dividend payout ratio is 73.72%.

Insider Activity

In other Starbucks news, Director Jorgen Vig Knudstorp purchased 380 shares of the stock in a transaction that occurred on Friday, September 6th. The stock was bought at an average cost of $91.50 per share, with a total value of $34,770.00. Following the transaction, the director now directly owns 36,242 shares in the company, valued at approximately $3,316,143. The trade was a 1.06 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently made changes to their positions in the business. FMR LLC increased its stake in Starbucks by 55.0% during the 3rd quarter. FMR LLC now owns 19,779,859 shares of the coffee company’s stock valued at $1,928,339,000 after purchasing an additional 7,015,375 shares in the last quarter. Ontario Teachers Pension Plan Board purchased a new stake in Starbucks during the 1st quarter valued at $415,167,000. Marshall Wace LLP increased its holdings in shares of Starbucks by 1,466.3% in the 2nd quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock worth $260,870,000 after purchasing an additional 3,136,992 shares in the last quarter. Diamond Hill Capital Management Inc. purchased a new position in shares of Starbucks in the second quarter worth $243,910,000. Finally, Capital World Investors bought a new position in shares of Starbucks during the first quarter valued at $257,721,000. Institutional investors own 72.29% of the company’s stock.

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.