Starbucks Corp. (SBUX) Rating Lowered 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 research 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.”
Other equities analysts have also recently issued research reports about the company. Jefferies Group reiterated a “buy” rating on shares of Starbucks Corp. in a report on Tuesday, July 5th. Vetr cut Starbucks Corp. from a “strong-buy” rating to a “buy” rating and set a $62.21 price target on the stock. in a report on Wednesday, June 29th. Nomura reiterated a “buy” rating on shares of Starbucks Corp. in a report on Tuesday, July 12th. Royal Bank Of Canada reiterated a “buy” rating on shares of Starbucks Corp. in a report on Tuesday, July 12th. Finally, Robert W. Baird reiterated a “buy” rating on shares of Starbucks Corp. in a report on Tuesday, May 24th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, twenty-five have issued a buy rating and two have assigned a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target 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 firm has a market capitalization of $78.17 billion, a P/E ratio of 29.94 and a beta of 0.80. The firm has a 50-day moving average of $55.50 and a 200-day moving average of $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 (EPS) for the quarter, meeting the consensus estimate of $0.49. The business had revenue of $5.20 billion for the quarter, compared to analysts’ expectations of $5.34 billion. Starbucks Corp. had a return on equity of 46.89% and a net margin of 13.01%. On average, equities analysts predict that Starbucks Corp. will post $1.89 earnings per share for the current fiscal year.
In other news, Director Myron E. Ullman III sold 12,654 shares of the company’s stock in a transaction 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 sale, the director now directly owns 26,654 shares in the company, valued at approximately $1,564,589.80. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 3.38% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the stock. Capital Investment Advisors LLC increased its stake in Starbucks Corp. by 2.3% in the first quarter. Capital Investment Advisors LLC now owns 4,940 shares of the coffee company’s stock worth $295,000 after buying an additional 111 shares during the last quarter. Jacobs & Co. CA increased its stake in Starbucks Corp. by 3.6% in the first quarter. Jacobs & Co. CA now owns 119,659 shares of the coffee company’s stock worth $7,143,000 after buying an additional 4,210 shares during the last quarter. Quotient Investors LLC increased its stake in Starbucks Corp. by 6.3% in the first quarter. Quotient Investors LLC now owns 45,973 shares of the coffee company’s stock worth $2,745,000 after buying an additional 2,727 shares during the last quarter. Osborn Rohs Williams & Donohoe Ltd increased its stake in 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 worth $2,262,000 after buying an additional 20,112 shares during the last quarter. Finally, RNC Capital Management LLC increased its stake in Starbucks Corp. by 2.0% in the first quarter. RNC Capital Management LLC now owns 17,499 shares of the coffee company’s stock worth $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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