Starbucks (SBUX) Trading 0.6% Higher on Analyst Upgrade

Starbucks Co. (NASDAQ:SBUX) shares traded up 0.6% on Monday after Mizuho upgraded the stock from a neutral rating to a buy rating. Mizuho now has a $75.00 price target on the stock, up from their previous price target of $56.00. Starbucks traded as high as $65.68 and last traded at $64.69. 1,040,335 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 14,903,019 shares. The stock had previously closed at $64.32.

A number of other research analysts also recently commented on SBUX. BMO Capital Markets set a $51.00 target price on Starbucks and gave the company a “hold” rating in a research report on Monday, July 23rd. Barclays lowered their target price on Starbucks from $60.00 to $57.00 and set a “$51.15” rating for the company in a research report on Wednesday, July 18th. Telsey Advisory Group lowered their target price on Starbucks from $60.00 to $58.00 and set a “market perform” rating for the company in a research report on Tuesday, July 17th. ValuEngine upgraded Starbucks from a “hold” rating to a “buy” rating in a research report on Friday, October 26th. Finally, Robert W. Baird increased their target price on Starbucks from $64.00 to $72.00 and gave the company an “outperform” rating in a research report on Friday. Three investment 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 a consensus target price of $63.48.

In related news, insider Rosalind G. Brewer purchased 5,000 shares of the firm’s stock in a transaction that occurred on Monday, August 20th. The shares were bought at an average price of $54.04 per share, for a total transaction of $270,200.00. Following the acquisition, the insider now owns 7,302 shares of the company’s stock, valued at approximately $394,600.08. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Javier G. Teruel sold 166,666 shares of the stock in a transaction on Friday, August 24th. The shares were sold at an average price of $52.70, for a total value of $8,783,298.20. The disclosure for this sale can be found here. Insiders have sold a total of 280,832 shares of company stock worth $15,052,087 in the last 90 days. 3.48% of the stock is currently owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in SBUX. Archford Capital Strategies LLC increased its stake in Starbucks by 669.7% in the second quarter. Archford Capital Strategies LLC now owns 2,186 shares of the coffee company’s stock worth $107,000 after purchasing an additional 1,902 shares during the period. Polaris Greystone Financial Group LLC purchased a new stake in Starbucks in the third quarter worth $107,000. Fort L.P. purchased a new stake in Starbucks in the second quarter worth $112,000. Point72 Hong Kong Ltd purchased a new stake in Starbucks in the second quarter worth $115,000. Finally, RPg Family Wealth Advisory LLC increased its stake in Starbucks by 155.6% in the second quarter. RPg Family Wealth Advisory LLC now owns 2,748 shares of the coffee company’s stock worth $134,000 after purchasing an additional 1,673 shares during the period. Institutional investors and hedge funds own 71.77% of the company’s stock.

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 capitalization of $86.77 billion, a price-to-earnings ratio of 26.64, a price-to-earnings-growth ratio of 1.74 and a beta of 0.48.

Starbucks (NASDAQ:SBUX) last released its earnings results on Thursday, November 1st. The coffee company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $6.28 billion. During the same quarter last year, the firm posted $0.55 earnings per share. The business’s revenue was up 10.6% compared to the same quarter last year. Analysts expect that Starbucks Co. will post 2.64 earnings per share for the current fiscal year.

The company 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 dividend of $0.36 per share. The ex-dividend date is Wednesday, November 14th. This represents a $1.44 annualized dividend and a dividend yield of 2.23%. Starbucks’s dividend payout ratio is currently 59.50%.

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About Starbucks (NASDAQ:SBUX)

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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