Starbucks Corporation (SBUX) Upgraded to “Hold” by Zacks Investment Research
Starbucks Corporation (NASDAQ:SBUX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Starbucks’s operating fundamentals such as solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings remain strong. 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 lead to value creation. These initiatives might benefit the company in the long run. However, the consequential increment in spending is likely to create pressure on its bottom line in the near term. Also, economic, geopolitical and consumer headwinds continue to impact Starbucks' results. Meanwhile, the company’s shares have underperformed the industry so far this year.”
Several other equities research analysts have also issued reports on the company. Jefferies Group LLC reiterated a “buy” rating and set a $65.00 price target on shares of Starbucks Corporation in a report on Friday, May 12th. Deutsche Bank AG upgraded Starbucks Corporation from a “hold” rating to a “buy” rating and lifted their price target for the company from $59.00 to $69.00 in a report on Monday, May 15th. Cowen and Company reiterated a “buy” rating and set a $63.00 price target on shares of Starbucks Corporation in a report on Friday, September 1st. Wedbush upgraded Starbucks Corporation from a “neutral” rating to an “outperform” rating and lifted their price target for the company from $57.00 to $60.00 in a report on Friday, August 25th. Finally, Vetr upgraded Starbucks Corporation from a “buy” rating to a “strong-buy” rating and set a $67.14 price target for the company in a report on Thursday, June 22nd. Twelve research analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and three have given a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $64.64.
Starbucks Corporation (NASDAQ:SBUX) traded up 0.04% during trading on Wednesday, hitting $53.49. 11,774,483 shares of the stock were exchanged. The company has a market cap of $77.23 billion, a price-to-earnings ratio of 27.00 and a beta of 0.78. The stock’s 50 day moving average is $54.75 and its 200-day moving average is $57.98. Starbucks Corporation has a one year low of $50.84 and a one year high of $64.87. Starbucks Corporation also was the target of some unusual options trading on Thursday. Investors purchased 11,653 put options on the stock. This represents an increase of 132% compared to the typical volume of 5,014 put options.
Starbucks Corporation (NASDAQ:SBUX) last announced its quarterly earnings results on Thursday, July 27th. The coffee company reported $0.55 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.55. The business had revenue of $5.66 billion during the quarter, compared to analyst estimates of $5.76 billion. Starbucks Corporation had a return on equity of 52.82% and a net margin of 12.93%. The firm’s revenue was up 8.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.49 EPS. On average, equities research analysts expect that Starbucks Corporation will post $2.07 earnings per share for the current fiscal year.
In related news, Director Myron E. Ullman III sold 10,000 shares of the stock in a transaction that occurred on Wednesday, June 14th. The stock was sold at an average price of $60.63, for a total transaction of $606,300.00. Following the completion of the transaction, the director now directly owns 24,000 shares of the company’s stock, valued at $1,455,120. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jorgen Vig Knudstorp purchased 18,000 shares of Starbucks Corporation stock in a transaction that occurred on Friday, August 4th. The shares were bought at an average cost of $55.30 per share, with a total value of $995,400.00. Following the completion of the transaction, the director now directly owns 18,000 shares of the company’s stock, valued at approximately $995,400. The disclosure for this purchase can be found here. Corporate insiders own 3.40% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Starbucks Corporation by 2.1% during the second quarter. Vanguard Group Inc. now owns 94,417,613 shares of the coffee company’s stock valued at $5,505,491,000 after purchasing an additional 1,953,003 shares during the last quarter. State Street Corp lifted its position in shares of Starbucks Corporation by 2.7% in the first quarter. State Street Corp now owns 60,822,661 shares of the coffee company’s stock valued at $3,551,445,000 after buying an additional 1,598,669 shares during the last quarter. Capital World Investors lifted its position in shares of Starbucks Corporation by 2.0% in the second quarter. Capital World Investors now owns 45,458,682 shares of the coffee company’s stock valued at $2,650,696,000 after buying an additional 895,432 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of Starbucks Corporation by 7.8% in the first quarter. Bank of New York Mellon Corp now owns 30,770,264 shares of the coffee company’s stock valued at $1,796,675,000 after buying an additional 2,234,324 shares during the last quarter. Finally, Northern Trust Corp lifted its position in shares of Starbucks Corporation by 5.2% in the second quarter. Northern Trust Corp now owns 21,452,905 shares of the coffee company’s stock valued at $1,250,919,000 after buying an additional 1,060,298 shares during the last quarter. 70.99% of the stock is owned by hedge funds and other institutional investors.
Starbucks Corporation Company Profile
Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.
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