Starbucks Corporation (SBUX) Raised to “Hold” at Zacks Investment Research
Starbucks Corporation (NASDAQ:SBUX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
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 analysts have also commented on SBUX. Cowen and Company reiterated a “buy” rating and issued a $63.00 target price on shares of Starbucks Corporation in a research note on Friday, September 1st. Bank of America Corporation reiterated a “neutral” rating and issued a $65.00 target price on shares of Starbucks Corporation in a research note on Thursday, September 14th. Wedbush upgraded Starbucks Corporation from a “neutral” rating to an “outperform” rating and upped their target price for the company from $57.00 to $60.00 in a research note on Friday, August 25th. Deutsche Bank AG reiterated a “buy” rating and issued a $67.00 target price on shares of Starbucks Corporation in a research note on Monday, October 9th. Finally, Mizuho reiterated a “buy” rating and issued a $75.00 target price on shares of Starbucks Corporation in a research note on Thursday, July 6th. Thirteen analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and two have given a strong buy rating to the stock. Starbucks Corporation has an average rating of “Buy” and a consensus price target of $64.24.
Starbucks Corporation (NASDAQ:SBUX) traded down 0.157% during trading on Tuesday, hitting $54.185. The stock had a trading volume of 4,411,050 shares. The stock’s 50-day moving average is $54.67 and its 200 day moving average is $57.58. Starbucks Corporation has a one year low of $50.84 and a one year high of $64.87. The firm has a market cap of $78.24 billion, a price-to-earnings ratio of 27.352 and a beta of 0.78.
Starbucks Corporation (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, July 27th. The coffee company reported $0.55 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.55. Starbucks Corporation had a return on equity of 52.82% and a net margin of 12.93%. The company had revenue of $5.66 billion during the quarter, compared to analysts’ expectations of $5.76 billion. During the same period in the previous year, the firm posted $0.49 earnings per share. The business’s revenue for the quarter was up 8.1% compared to the same quarter last year. Equities analysts anticipate that Starbucks Corporation will post $2.06 earnings per share for the current year.
In other Starbucks Corporation news, Director Myron E. Ullman III sold 22,966 shares of the company’s stock in a transaction that occurred on Thursday, September 7th. The stock was sold at an average price of $53.41, for a total transaction of $1,226,614.06. Following the sale, the director now owns 36,966 shares in the company, valued at $1,974,354.06. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Jorgen Vig Knudstorp acquired 18,000 shares of the business’s stock in a transaction on Friday, August 4th. The shares were purchased at an average price of $55.30 per share, for a total transaction of $995,400.00. Following the purchase, the director now directly owns 18,000 shares of the company’s stock, valued at $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 made changes to their positions in the business. Vanguard Group Inc. raised its stake 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 buying an additional 1,953,003 shares in the last quarter. State Street Corp raised its position in shares of Starbucks Corporation by 2.7% during the 1st quarter. State Street Corp now owns 60,822,661 shares of the coffee company’s stock worth $3,551,445,000 after purchasing an additional 1,598,669 shares during the period. Capital World Investors raised its position in shares of Starbucks Corporation by 2.0% during the 2nd quarter. Capital World Investors now owns 45,458,682 shares of the coffee company’s stock worth $2,650,696,000 after purchasing an additional 895,432 shares during the period. BlackRock Institutional Trust Company N.A. raised its position in shares of Starbucks Corporation by 3.0% during the 3rd quarter. BlackRock Institutional Trust Company N.A. now owns 40,448,352 shares of the coffee company’s stock worth $2,189,874,000 after purchasing an additional 1,179,660 shares during the period. Finally, Bank of New York Mellon Corp raised its position in shares of Starbucks Corporation by 7.8% during the 1st quarter. Bank of New York Mellon Corp now owns 30,770,264 shares of the coffee company’s stock worth $1,796,675,000 after purchasing an additional 2,234,324 shares during the period. Hedge funds and other institutional investors own 70.77% of the company’s stock.
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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