Mizuho Upgrades Starbucks (SBUX) to Buy

Mizuho upgraded shares of Starbucks (NASDAQ:SBUX) from a neutral rating to a buy rating in a research note issued to investors on Monday morning, MarketBeat.com reports. The brokerage currently has $75.00 price objective on the coffee company’s stock, up from their prior price objective of $56.00.

SBUX has been the subject of several other reports. Wedbush dropped their price target on Starbucks from $54.00 to $53.00 and set a neutral rating for the company in a research report on Friday, July 27th. Royal Bank of Canada upped their target price on Starbucks to $68.00 and gave the company a positive rating in a report on Friday. BidaskClub upgraded Starbucks from a hold rating to a buy rating in a report on Wednesday, September 12th. Bank of America upped their target price on Starbucks from $57.00 to $64.00 and gave the company a buy rating in a report on Wednesday, October 10th. Finally, Zacks Investment Research cut Starbucks from a hold rating to a sell rating in a report on Friday, September 28th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and eighteen have issued a buy rating to the company. The stock currently has an average rating of Hold and an average target price of $63.48.

Shares of SBUX stock opened at $64.48 on Monday. The company has a debt-to-equity ratio of 7.73, a current ratio of 2.20 and a quick ratio of 1.95. The company has a market cap of $86.77 billion, a PE ratio of 26.64, a price-to-earnings-growth ratio of 1.74 and a beta of 0.48. Starbucks has a 1-year low of $47.37 and a 1-year high of $65.68.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Thursday, November 1st. The coffee company reported $0.62 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.60 by $0.02. Starbucks had a return on equity of 86.33% and a net margin of 18.28%. The business had revenue of $6.30 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same period in the prior year, the company posted $0.55 EPS. The business’s quarterly revenue was up 10.6% on a year-over-year basis. On average, sell-side analysts forecast that Starbucks will post 2.64 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 30th. Stockholders of record on Thursday, November 15th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.23%. The ex-dividend date is Wednesday, November 14th. Starbucks’s dividend payout ratio (DPR) is presently 59.50%.

In related news, Director Myron E. Ullman III sold 15,000 shares of the stock in a transaction dated Monday, August 20th. The stock was sold at an average price of $53.98, for a total transaction of $809,700.00. Following the transaction, the director now owns 29,000 shares of the company’s stock, valued at approximately $1,565,420. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Rosalind G. Brewer bought 5,000 shares of the firm’s stock in a transaction that occurred on Monday, August 20th. The shares were purchased at an average cost of $54.04 per share, for a total transaction of $270,200.00. Following the purchase, the insider now owns 7,302 shares in the company, valued at approximately $394,600.08. The disclosure for this purchase can be found here. In the last ninety days, insiders sold 280,832 shares of company stock worth $15,052,087. Corporate insiders own 3.48% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of SBUX. Archford Capital Strategies LLC lifted its stake in Starbucks by 669.7% during the 2nd quarter. Archford Capital Strategies LLC now owns 2,186 shares of the coffee company’s stock worth $107,000 after acquiring an additional 1,902 shares in the last quarter. Polaris Greystone Financial Group LLC acquired a new position in Starbucks during the 3rd quarter worth about $107,000. Fort L.P. acquired a new position in Starbucks during the 2nd quarter worth about $112,000. Point72 Hong Kong Ltd acquired a new position in Starbucks during the 2nd quarter worth about $115,000. Finally, RPg Family Wealth Advisory LLC raised its position in Starbucks by 155.6% in the 2nd quarter. RPg Family Wealth Advisory LLC now owns 2,748 shares of the coffee company’s stock valued at $134,000 after purchasing an additional 1,673 shares in the last quarter. 71.77% of the stock is currently owned by hedge funds and other institutional investors.

About Starbucks

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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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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