Traders Buy Starbucks (SBUX) on Weakness

Investors purchased shares of Starbucks Co. (NASDAQ:SBUX) on weakness during trading hours on Monday. $128.11 million flowed into the stock on the tick-up and $55.14 million flowed out of the stock on the tick-down, for a money net flow of $72.97 million into the stock. Of all equities tracked, Starbucks had the 8th highest net in-flow for the day. Starbucks traded down ($0.10) for the day and closed at $56.48

Several equities analysts have issued reports on SBUX shares. UBS Group decreased their price target on shares of Starbucks from $67.00 to $64.00 and set a “buy” rating for the company in a research report on Friday, November 3rd. Mizuho set a $75.00 price target on shares of Starbucks and gave the company a “buy” rating in a research report on Wednesday, November 1st. Morgan Stanley increased their price objective on shares of Starbucks from $62.00 to $67.00 and gave the stock an “overweight” rating in a research report on Friday, November 10th. Vetr cut shares of Starbucks from a “strong-buy” rating to a “buy” rating and set a $60.91 price objective for the company. in a research report on Thursday, November 2nd. Finally, Oppenheimer reiterated a “buy” rating and set a $66.00 price objective on shares of Starbucks in a research report on Friday, January 19th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and twenty-two have assigned a buy rating to the stock. Starbucks currently has a consensus rating of “Buy” and an average target price of $64.63.

The firm has a market capitalization of $79,390.00, a P/E ratio of 18.95, a price-to-earnings-growth ratio of 1.56 and a beta of 0.70. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.81 and a current ratio of 1.01.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, January 25th. The coffee company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.57 by $0.01. Starbucks had a net margin of 19.28% and a return on equity of 56.35%. The company had revenue of $6.07 billion for the quarter, compared to analyst estimates of $6.19 billion. During the same period last year, the firm earned $0.52 earnings per share. The firm’s revenue was up 5.9% on a year-over-year basis. equities analysts forecast that Starbucks Co. will post 2.49 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Thursday, February 8th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.12%. The ex-dividend date is Wednesday, February 7th. Starbucks’s payout ratio is currently 40.27%.

In related news, Director Myron E. Ullman III sold 25,000 shares of the firm’s stock in a transaction dated Thursday, February 8th. The shares were sold at an average price of $54.52, for a total transaction of $1,363,000.00. Following the completion of the sale, the director now owns 39,000 shares in the company, valued at $2,126,280. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Clifford Burrows sold 162,826 shares of the firm’s stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $57.02, for a total transaction of $9,284,338.52. Following the sale, the insider now owns 331,829 shares of the company’s stock, valued at approximately $18,920,889.58. The disclosure for this sale can be found here. Insiders have sold 272,826 shares of company stock worth $15,645,139 over the last three months. 3.48% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in shares of Starbucks by 2.1% in the second quarter. Vanguard Group Inc. now owns 94,417,613 shares of the coffee company’s stock worth $5,505,491,000 after purchasing an additional 1,953,003 shares in the last quarter. Capital World Investors boosted its position in shares of Starbucks by 2.0% in the second quarter. Capital World Investors now owns 45,458,682 shares of the coffee company’s stock valued at $2,650,696,000 after acquiring an additional 895,432 shares during the period. Magellan Asset Management Ltd boosted its position in shares of Starbucks by 18.1% in the fourth quarter. Magellan Asset Management Ltd now owns 30,912,781 shares of the coffee company’s stock valued at $1,775,321,000 after acquiring an additional 4,744,675 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Starbucks by 4.1% in the fourth quarter. Bank of New York Mellon Corp now owns 30,728,508 shares of the coffee company’s stock valued at $1,764,739,000 after acquiring an additional 1,210,393 shares during the period. Finally, Northern Trust Corp boosted its position in shares of Starbucks by 5.2% in the second quarter. Northern Trust Corp now owns 21,452,905 shares of the coffee company’s stock valued at $1,250,919,000 after acquiring an additional 1,060,298 shares during the period. Institutional investors and hedge funds own 71.87% of the company’s stock.

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About Starbucks

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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