Starbucks (NASDAQ:SBUX) Downgraded to “Buy” at BidaskClub

BidaskClub cut shares of Starbucks (NASDAQ:SBUX) from a strong-buy rating to a buy rating in a report published on Monday, February 4th.

Several other equities analysts also recently commented on SBUX. Zacks Investment Research upgraded shares of Starbucks from a hold rating to a buy rating and set a $73.00 price target on the stock in a research note on Monday, January 28th. BMO Capital Markets increased their price objective on shares of Starbucks to $63.00 and gave the stock a market perform rating in a research note on Friday, December 14th. They noted that the move was a valuation call. Piper Jaffray Companies increased their price objective on shares of Starbucks from $53.00 to $60.00 and gave the stock a neutral rating in a research note on Friday, November 2nd. Royal Bank of Canada increased their price objective on shares of Starbucks to $68.00 and gave the stock a positive rating in a research note on Friday, November 2nd. Finally, Wells Fargo & Co reissued an outperform rating and issued a $73.00 target price (up previously from $66.00) on shares of Starbucks in a report on Friday, December 14th. Two investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of Buy and a consensus price target of $67.01.

Shares of SBUX opened at $70.85 on Monday. The stock has a market capitalization of $88.67 billion, a PE ratio of 29.28, a P/E/G ratio of 2.04 and a beta of 0.48. Starbucks has a fifty-two week low of $47.37 and a fifty-two week high of $72.07. The company has a debt-to-equity ratio of 7.73, a quick ratio of 1.16 and a current ratio of 1.41.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Thursday, January 24th. The coffee company reported $0.75 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.65 by $0.10. Starbucks had a net margin of 11.98% and a return on equity of 193.00%. The company had revenue of $6.63 billion for the quarter, compared to analyst estimates of $6.49 billion. During the same period in the prior year, the firm earned $0.65 earnings per share. The company’s revenue was up 9.2% on a year-over-year basis. Equities research analysts anticipate that Starbucks will post 2.72 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, February 22nd. Investors of record on Thursday, February 7th were given a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 2.03%. The ex-dividend date of this dividend was Wednesday, February 6th. Starbucks’s payout ratio is currently 59.50%.

In other Starbucks news, insider Clifford Burrows sold 152,634 shares of Starbucks stock in a transaction on Tuesday, January 29th. The shares were sold at an average price of $67.22, for a total transaction of $10,260,057.48. Following the transaction, the insider now directly owns 311,083 shares of the company’s stock, valued at approximately $20,910,999.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Vivek C. Varma sold 73,242 shares of Starbucks stock in a transaction on Friday, February 1st. The stock was sold at an average price of $68.36, for a total transaction of $5,006,823.12. Following the transaction, the executive vice president now directly owns 140,882 shares in the company, valued at $9,630,693.52. The disclosure for this sale can be found here. In the last three months, insiders sold 565,806 shares of company stock valued at $38,789,988. 3.98% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of SBUX. Lake Point Wealth Management purchased a new stake in shares of Starbucks during the fourth quarter valued at $25,000. Highwater Wealth Management LLC purchased a new stake in shares of Starbucks during the fourth quarter valued at $28,000. Veritas Investment Management LLP purchased a new stake in shares of Starbucks during the fourth quarter valued at $28,000. Mark Sheptoff Financial Planning LLC purchased a new stake in shares of Starbucks during the fourth quarter valued at $32,000. Finally, Clean Yield Group bought a new position in shares of Starbucks in the fourth quarter worth about $33,000. 73.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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