Starbucks Corp. (SBUX) Cut to Sell at Zacks Investment Research
Starbucks Corp. (NASDAQ:SBUX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Starbucks sales fell slightly short of expectations in the last two quarters. Again, Starbucks cut its full year sales and comps outlook at the third quarter conference call. However, the third quarter headwinds were typically temporary and Starbucks expects U.S. comps to improve in the next quarter. Starbucks’s operating fundamentals remain strong – solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings as well as rapid growth in the international markets. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships, food/beverage innovation, Starbucks Reserve premium coffees and Teavana tea can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also enhance value creation. However, accelerated global employee and digital investments can keep profits under strain for some time.”
A number of other equities research analysts also recently weighed in on SBUX. Deutsche Bank AG set a $64.00 price target on Starbucks Corp. and gave the stock a “hold” rating in a research note on Sunday, July 24th. Longbow Research began coverage on Starbucks Corp. in a research note on Wednesday. They set a “buy” rating for the company. Vetr downgraded Starbucks Corp. from a “strong-buy” rating to a “buy” rating and set a $62.76 price target for the company. in a research note on Monday, July 11th. Robert W. Baird reaffirmed a “buy” rating on shares of Starbucks Corp. in a research note on Tuesday, May 24th. Finally, Cowen and Company reaffirmed a “buy” rating on shares of Starbucks Corp. in a research note on Monday, July 18th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, twenty-five have given a buy rating and two have given a strong buy rating to the stock. Starbucks Corp. has a consensus rating of “Buy” and an average target price of $66.50.
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Shares of Starbucks Corp. (NASDAQ:SBUX) opened at 53.30 on Wednesday. Starbucks Corp. has a one year low of $52.63 and a one year high of $64.00. The stock has a market cap of $78.17 billion, a PE ratio of 29.94 and a beta of 0.80. The stock’s 50 day moving average price is $55.50 and its 200-day moving average price is $56.84.
Starbucks Corp. (NASDAQ:SBUX) last posted its quarterly earnings results on Thursday, July 21st. The coffee company reported $0.49 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.49. Starbucks Corp. had a return on equity of 46.89% and a net margin of 13.01%. The company earned $5.20 billion during the quarter, compared to the consensus estimate of $5.34 billion. On average, equities analysts predict that Starbucks Corp. will post $1.89 earnings per share for the current fiscal year.
In related news, Director Myron E. Ullman III sold 12,654 shares of the firm’s stock in a transaction that occurred on Tuesday, July 26th. The stock was sold at an average price of $58.70, for a total transaction of $742,789.80. Following the completion of the transaction, the director now owns 26,654 shares in the company, valued at approximately $1,564,589.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 3.38% of the company’s stock.
A number of institutional investors have recently modified their holdings of SBUX. Capital Investment Advisors LLC increased its position in shares of Starbucks Corp. by 2.3% in the first quarter. Capital Investment Advisors LLC now owns 4,940 shares of the coffee company’s stock valued at $295,000 after buying an additional 111 shares during the last quarter. Jacobs & Co. CA increased its position in shares of Starbucks Corp. by 3.6% in the first quarter. Jacobs & Co. CA now owns 119,659 shares of the coffee company’s stock valued at $7,143,000 after buying an additional 4,210 shares during the last quarter. Quotient Investors LLC increased its position in shares of Starbucks Corp. by 6.3% in the first quarter. Quotient Investors LLC now owns 45,973 shares of the coffee company’s stock valued at $2,745,000 after buying an additional 2,727 shares during the last quarter. Osborn Rohs Williams & Donohoe Ltd increased its position in shares of Starbucks Corp. by 113.2% in the first quarter. Osborn Rohs Williams & Donohoe Ltd now owns 37,884 shares of the coffee company’s stock valued at $2,262,000 after buying an additional 20,112 shares during the last quarter. Finally, RNC Capital Management LLC increased its position in shares of Starbucks Corp. by 2.0% in the first quarter. RNC Capital Management LLC now owns 17,499 shares of the coffee company’s stock valued at $1,045,000 after buying an additional 350 shares during the last quarter. Hedge funds and other institutional investors own 68.13% of the company’s stock.
Starbucks Corp. Company Profile
Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The Company purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts.
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