Starbucks (NASDAQ:SBUX) Shares Down 1.6% After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s share price was down 1.6% on Friday after HSBC lowered their price target on the stock from $107.00 to $84.00. HSBC currently has a hold rating on the stock. Starbucks traded as low as $73.74 and last traded at $73.75. 5,875,128 shares traded hands during trading, a decline of 37% from the average session volume of 9,268,319 shares. The stock had previously closed at $74.93.

Other analysts have also issued research reports about the company. TD Cowen lowered their target price on Starbucks from $100.00 to $85.00 and set a “hold” rating on the stock in a report on Wednesday. Barclays reduced their price target on shares of Starbucks from $116.00 to $112.00 and set an “overweight” rating for the company in a report on Wednesday, January 31st. William Blair downgraded shares of Starbucks from an “outperform” rating to a “market perform” rating in a report on Wednesday. Wells Fargo & Company reduced their target price on shares of Starbucks from $105.00 to $90.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Stephens restated an “equal weight” rating and set a $110.00 price target on shares of Starbucks in a research note on Wednesday, January 31st. Seventeen investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $97.09.

Insider Activity at Starbucks

In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction dated Monday, April 15th. The shares were sold at an average price of $85.39, for a total transaction of $277,517.50. Following the sale, the chief executive officer now owns 81,199 shares of the company’s stock, valued at approximately $6,933,582.61. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders sold 7,250 shares of company stock valued at $651,738 over the last ninety days. 1.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Starbucks

Institutional investors and hedge funds have recently made changes to their positions in the company. Willow Creek Wealth Management Inc. raised its stake in shares of Starbucks by 3.0% during the third quarter. Willow Creek Wealth Management Inc. now owns 3,305 shares of the coffee company’s stock worth $302,000 after buying an additional 97 shares during the last quarter. Valley Brook Capital Group Inc. lifted its stake in shares of Starbucks by 2.4% in the 3rd quarter. Valley Brook Capital Group Inc. now owns 4,200 shares of the coffee company’s stock valued at $383,000 after purchasing an additional 100 shares during the period. Charles Schwab Investment Advisory Inc. boosted its position in shares of Starbucks by 4.6% in the 3rd quarter. Charles Schwab Investment Advisory Inc. now owns 2,260 shares of the coffee company’s stock worth $206,000 after purchasing an additional 100 shares during the last quarter. Herold Advisors Inc. grew its stake in shares of Starbucks by 4.3% during the third quarter. Herold Advisors Inc. now owns 2,422 shares of the coffee company’s stock worth $221,000 after purchasing an additional 100 shares during the period. Finally, Rodgers Brothers Inc. increased its holdings in Starbucks by 1.2% in the third quarter. Rodgers Brothers Inc. now owns 8,269 shares of the coffee company’s stock valued at $755,000 after purchasing an additional 100 shares during the last quarter. Institutional investors own 72.29% of the company’s stock.

Starbucks Price Performance

The stock has a market cap of $82.81 billion, a price-to-earnings ratio of 20.14, a price-to-earnings-growth ratio of 1.28 and a beta of 0.97. The firm has a 50 day simple moving average of $89.34 and a two-hundred day simple moving average of $93.98.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing the consensus estimate of $0.79 by ($0.11). Starbucks had a negative return on equity of 49.91% and a net margin of 11.38%. The firm had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. During the same period in the previous year, the business earned $0.74 EPS. The firm’s revenue was down 1.8% compared to the same quarter last year. On average, sell-side analysts expect that Starbucks Co. will post 3.89 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be issued a dividend of $0.57 per share. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.28 annualized dividend and a yield of 3.12%. Starbucks’s dividend payout ratio is presently 62.81%.

Starbucks Company Profile

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.