Wedbush initiated coverage on shares of Starbucks (NASDAQ:SBUX) in a research report report published on Friday. The brokerage issued a positive rating and a $57.68 target price on the coffee company’s stock. Wedbush also issued estimates for Starbucks’ FY2018 earnings at $2.47 EPS and Q1 2019 earnings at $0.55 EPS.
A number of other research analysts have also issued reports on SBUX. Goldman Sachs Group lowered shares of Starbucks from a conviction-buy rating to a buy rating and reduced their target price for the company from $73.00 to $68.00 in a research note on Friday, January 26th. BMO Capital Markets upped their price target on shares of Starbucks to $58.00 and gave the stock a market perform rating in a research note on Friday, January 26th. BTIG Research reaffirmed a buy rating and issued a $64.00 price target on shares of Starbucks in a research note on Friday, January 26th. Deutsche Bank reaffirmed a buy rating and issued a $63.00 price target on shares of Starbucks in a research note on Friday, January 26th. Finally, Piper Jaffray Companies reaffirmed a buy rating and issued a $70.00 price target on shares of Starbucks in a research note on Friday, January 26th. One analyst has rated the stock with a sell rating, thirteen have given a hold rating and nineteen have given a buy rating to the stock. Starbucks currently has a consensus rating of Buy and a consensus price target of $64.23.
Starbucks stock opened at $57.92 on Friday. The company has a quick ratio of 0.83, a current ratio of 1.09 and a debt-to-equity ratio of 1.31. The stock has a market cap of $79.93 billion, a price-to-earnings ratio of 28.12, a PEG ratio of 1.66 and a beta of 0.63. Starbucks has a 52-week low of $52.58 and a 52-week high of $64.87.
Starbucks (NASDAQ:SBUX) last posted its earnings results on Thursday, April 26th. The coffee company reported $0.53 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.53. The firm had revenue of $6.03 billion during the quarter, compared to analyst estimates of $5.93 billion. Starbucks had a net margin of 18.71% and a return on equity of 60.33%. Starbucks’s revenue was up 13.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.45 EPS. equities analysts forecast that Starbucks will post 2.49 EPS for the current fiscal year.
Starbucks announced that its board has approved a share repurchase program on Thursday, April 26th that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the coffee company to purchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which was paid on Friday, May 25th. Investors of record on Thursday, May 10th were issued a $0.30 dividend. The ex-dividend date was Wednesday, May 9th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.07%. Starbucks’s payout ratio is currently 58.25%.
In other news, Director Craig Weatherup sold 59,838 shares of the business’s stock in a transaction that occurred on Tuesday, March 13th. The shares were sold at an average price of $60.10, for a total transaction of $3,596,263.80. Following the sale, the director now owns 26,500 shares in the company, valued at $1,592,650. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.40% of the stock is owned by insiders.
Several hedge funds have recently added to or reduced their stakes in SBUX. Bedel Financial Consulting Inc. acquired a new stake in shares of Starbucks during the first quarter valued at approximately $104,000. Taylor Hoffman Wealth Management acquired a new stake in shares of Starbucks during the fourth quarter valued at approximately $107,000. Sumitomo Mitsui Financial Group Inc. acquired a new stake in shares of Starbucks during the third quarter valued at approximately $111,000. Prime Capital Investment Advisors LLC acquired a new stake in shares of Starbucks during the fourth quarter valued at approximately $113,000. Finally, Gradient Investments LLC acquired a new stake in shares of Starbucks during the fourth quarter valued at approximately $117,000. Institutional investors and hedge funds own 72.38% of the company’s stock.
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 coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.
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