Starbucks Corp. (SBUX) Upgraded by Zacks Investment Research to “Hold”
Starbucks Corp. (NASDAQ:SBUX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Starbucks is strengthening its portfolio with significant innovation around beverages and core food offerings. Its third-quarter sales were chiefly hurt by slow down of comps and traffic trends in the U.S. market. However, the third quarter headwinds were 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. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships 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, business in Europe is clouded by the economic uncertainties in the Northern region and deflation in the Eurozone. Accelerated global employee and digital investments can keep profits under strain.”
Several other research firms have also commented on SBUX. BTIG Research cut their price target on Starbucks Corp. from $75.00 to $64.00 and set a “buy” rating on the stock in a research report on Friday, July 22nd. RBC Capital Markets reaffirmed an “outperform” rating and set a $68.00 price target on shares of Starbucks Corp. in a research report on Monday, July 25th. Credit Agricole SA cut their price target on Starbucks Corp. from $70.00 to $68.00 and set a “buy” rating on the stock in a research report on Wednesday, September 28th. Piper Jaffray Cos. reaffirmed an “outperform” rating and set a $72.00 price target on shares of Starbucks Corp. in a research report on Friday, July 22nd. Finally, Macquarie raised Starbucks Corp. from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, September 14th. Six investment analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Starbucks Corp. currently has an average rating of “Buy” and an average price target of $66.04.
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Starbucks Corp. (NASDAQ:SBUX) opened at 53.045 on Wednesday. Starbucks Corp. has a 12 month low of $52.59 and a 12 month high of $64.00. The stock has a market cap of $77.80 billion, a price-to-earnings ratio of 29.801 and a beta of 0.83. The stock’s 50 day moving average price is $54.13 and its 200-day moving average price is $56.08.
Starbucks Corp. (NASDAQ:SBUX) last issued its earnings results on Thursday, July 21st. The coffee company reported $0.49 earnings per share for the quarter, hitting the consensus estimate of $0.49. Starbucks Corp. had a return on equity of 46.89% and a net margin of 13.01%. The business had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.34 billion. Equities research analysts predict that Starbucks Corp. will post $1.89 EPS for the current year.
In other news, Director Myron E. Ullman III sold 12,654 shares of the company’s stock in a transaction dated Tuesday, July 26th. The stock was sold at an average price of $58.70, for a total value of $742,789.80. Following the completion of the sale, the director now owns 26,654 shares of the company’s stock, valued at $1,564,589.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 3.38% of the stock is owned by insiders.
Large investors have recently modified their holdings of the company. BlackRock Group LTD increased its stake in shares of Starbucks Corp. by 5.9% in the first quarter. BlackRock Group LTD now owns 12,505,831 shares of the coffee company’s stock valued at $746,597,000 after buying an additional 695,708 shares during the last quarter. BlackRock Fund Advisors increased its position in Starbucks Corp. by 0.3% in the first quarter. BlackRock Fund Advisors now owns 20,001,710 shares of the coffee company’s stock worth $1,194,102,000 after buying an additional 66,026 shares in the last quarter. BlackRock Japan Co. Ltd increased its position in Starbucks Corp. by 8.0% in the first quarter. BlackRock Japan Co. Ltd now owns 2,055,161 shares of the coffee company’s stock worth $122,693,000 after buying an additional 152,590 shares in the last quarter. Bristlecone Advisors LLC increased its position in Starbucks Corp. by 4.6% in the first quarter. Bristlecone Advisors LLC now owns 39,789 shares of the coffee company’s stock worth $2,375,000 after buying an additional 1,764 shares in the last quarter. Finally, Peapack Gladstone Financial Corp increased its position in Starbucks Corp. by 3.4% in the first quarter. Peapack Gladstone Financial Corp now owns 214,024 shares of the coffee company’s stock worth $12,777,000 after buying an additional 7,067 shares in the last quarter. 68.39% of the stock is owned by institutional investors.
About Starbucks Corp.
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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