StockNews.com Downgrades Starbucks (NASDAQ:SBUX) to Sell

Starbucks (NASDAQ:SBUX) was downgraded by stock analysts at StockNews.com from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday.

Other research analysts have also issued research reports about the stock. Baird R W lowered shares of Starbucks from a “strong-buy” rating to a “hold” rating in a report on Monday, April 7th. JPMorgan Chase & Co. cut their target price on Starbucks from $105.00 to $100.00 and set an “overweight” rating on the stock in a research report on Wednesday. Royal Bank of Canada decreased their price target on shares of Starbucks from $100.00 to $95.00 and set an “outperform” rating for the company in a research note on Wednesday. Stifel Nicolaus lowered their target price on Starbucks from $103.00 to $92.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Jefferies Financial Group raised shares of Starbucks from an “underperform” rating to a “hold” rating and set a $76.00 price target on the stock in a research report on Wednesday, April 9th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and sixteen have issued a buy rating to the company. According to data from MarketBeat.com, Starbucks presently has an average rating of “Hold” and an average target price of $98.72.

Starbucks Stock Performance

Shares of NASDAQ SBUX opened at $84.69 on Friday. Starbucks has a 52 week low of $71.55 and a 52 week high of $117.46. The stock has a market capitalization of $96.20 billion, a P/E ratio of 27.32, a PEG ratio of 3.59 and a beta of 1.00. The stock’s fifty day moving average is $93.22 and its 200 day moving average is $97.39.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Tuesday, April 29th. The coffee company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.10). The business had revenue of $8.76 billion for the quarter, compared to the consensus estimate of $8.90 billion. Starbucks had a negative return on equity of 44.97% and a net margin of 9.73%. Starbucks’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.68 earnings per share. Equities research analysts forecast that Starbucks will post 2.99 earnings per share for the current year.

Institutional Investors Weigh In On Starbucks

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Financial Life Planners purchased a new position in shares of Starbucks during the fourth quarter worth about $25,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Starbucks in the fourth quarter valued at about $25,000. Graney & King LLC bought a new position in Starbucks during the 4th quarter valued at approximately $26,000. Collier Financial bought a new position in shares of Starbucks during the fourth quarter valued at approximately $27,000. Finally, Runnymede Capital Advisors Inc. purchased a new stake in shares of Starbucks in the 4th quarter worth about $27,000. 72.29% of the stock is currently owned by institutional investors.

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.