Starbucks (NASDAQ:SBUX) Trading Down 0.7% on Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s share price was down 0.7% during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $100.00 to $92.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Starbucks traded as low as $73.35 and last traded at $73.90. Approximately 8,871,633 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 9,120,123 shares. The stock had previously closed at $74.44.

A number of other equities analysts have also recently commented on the company. Piper Sandler decreased their price target on Starbucks from $107.00 to $100.00 and set a “neutral” rating on the stock in a research note on Friday, January 19th. Stephens reissued an “equal weight” rating and set a $110.00 target price on shares of Starbucks in a research note on Wednesday, January 31st. Stifel Nicolaus reduced their target price on Starbucks from $90.00 to $80.00 and set a “hold” rating on the stock in a research note on Wednesday. Oppenheimer reissued a “market perform” rating on shares of Starbucks in a research note on Friday, April 19th. Finally, BTIG Research reduced their target price on Starbucks from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Wednesday. Sixteen equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $100.39.

Insiders Place Their Bets

In other news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction on Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the completion of the transaction, the chief executive officer now owns 81,199 shares in the company, valued at $6,933,582.61. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders have sold 7,250 shares of company stock valued at $651,738. 1.98% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Raymond James Financial Services Advisors Inc. increased its position in Starbucks by 1.3% during the third quarter. Raymond James Financial Services Advisors Inc. now owns 647,987 shares of the coffee company’s stock valued at $59,142,000 after acquiring an additional 8,374 shares during the last quarter. Simon Quick Advisors LLC increased its position in Starbucks by 7.9% during the third quarter. Simon Quick Advisors LLC now owns 3,675 shares of the coffee company’s stock valued at $335,000 after acquiring an additional 269 shares during the last quarter. Stratos Wealth Advisors LLC increased its position in Starbucks by 38.5% during the third quarter. Stratos Wealth Advisors LLC now owns 9,015 shares of the coffee company’s stock valued at $823,000 after acquiring an additional 2,506 shares during the last quarter. Horst & Graben Wealth Management LLC increased its position in Starbucks by 2.7% during the third quarter. Horst & Graben Wealth Management LLC now owns 5,261 shares of the coffee company’s stock valued at $480,000 after acquiring an additional 137 shares during the last quarter. Finally, Baker Ellis Asset Management LLC increased its position in Starbucks by 1.9% during the third quarter. Baker Ellis Asset Management LLC now owns 5,859 shares of the coffee company’s stock valued at $535,000 after acquiring an additional 108 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Price Performance

The company has a market cap of $84.84 billion, a PE ratio of 20.64, a PEG ratio of 1.49 and a beta of 0.97. The business has a 50-day moving average of $89.34 and a 200 day moving average of $93.98.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 EPS for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). The firm had revenue of $8.56 billion for the quarter, compared to analysts’ expectations of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 50.10%. The firm’s revenue was down 1.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.74 EPS. On average, equities analysts predict that Starbucks Co. will post 3.99 EPS for the current fiscal year.

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be given a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a yield of 3.04%. The ex-dividend date is Thursday, May 16th. Starbucks’s payout ratio is 62.81%.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.