Starbucks Corp. (NASDAQ:SBUX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Starbucks sales fell slightly short of expectations in the last two quarters. Again, Starbucks cut its full year sales and comps outlook at the third quarter conference call. However, the third quarter headwinds were typically temporary and Starbucks expects U.S. comps to improve in the next quarter. Starbucks’s operating fundamentals remain strong – solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings as well as rapid growth in the international markets. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships, food/beverage innovation, Starbucks Reserve premium coffees and Teavana tea can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also enhance value creation. However, accelerated global employee and digital investments can keep profits under strain for some time.”
Several other equities research analysts have also recently weighed in on the company. BTIG Research dropped their price objective on Starbucks Corp. from $75.00 to $64.00 and set a “buy” rating for the company in a report on Friday, July 22nd. RBC Capital Markets reiterated an “outperform” rating and issued a $68.00 price objective on shares of Starbucks Corp. in a report on Monday, July 25th. Credit Agricole SA dropped their price objective on Starbucks Corp. from $70.00 to $68.00 and set a “buy” rating for the company in a report on Wednesday, September 28th. Piper Jaffray Cos. reiterated an “outperform” rating and issued a $72.00 price objective on shares of Starbucks Corp. in a report on Friday, July 22nd. Finally, Macquarie upgraded Starbucks Corp. from a “buy” rating to a “strong-buy” rating in a report on Wednesday, September 14th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, twenty-five have given a buy rating and two have issued a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $66.54.
Shares of Starbucks Corp. (NASDAQ:SBUX) opened at 53.35 on Tuesday. Starbucks Corp. has a one year low of $52.63 and a one year high of $64.00. The company’s 50-day moving average price is $54.98 and its 200 day moving average price is $56.49. The company has a market cap of $78.24 billion, a P/E ratio of 29.97 and a beta of 0.83.
Starbucks Corp. (NASDAQ:SBUX) last issued its earnings results on Thursday, July 21st. The coffee company reported $0.49 earnings per share for the quarter, meeting the consensus estimate of $0.49. The company earned $5.20 billion during the quarter, compared to analysts’ expectations of $5.34 billion. Starbucks Corp. had a return on equity of 46.89% and a net margin of 13.01%. On average, equities research analysts anticipate that Starbucks Corp. will post $1.89 earnings per share for the current year.
In other news, Director Myron E. Ullman III sold 12,654 shares of Starbucks Corp. stock in a transaction dated Tuesday, July 26th. The stock was sold at an average price of $58.70, for a total value of $742,789.80. Following the sale, the director now directly owns 26,654 shares of the company’s stock, valued at $1,564,589.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.38% of the stock is owned by insiders.
Several large investors have recently modified their holdings of SBUX. Douglas Lane & Associates LLC bought a new stake in shares of Starbucks Corp. during the first quarter valued at $12,883,000. Duncker Streett & Co. Inc. boosted its stake in shares of Starbucks Corp. by 5.2% in the first quarter. Duncker Streett & Co. Inc. now owns 18,110 shares of the coffee company’s stock valued at $1,081,000 after buying an additional 900 shares during the last quarter. North Star Investment Management Corp. boosted its stake in shares of Starbucks Corp. by 46.0% in the first quarter. North Star Investment Management Corp. now owns 12,256 shares of the coffee company’s stock valued at $732,000 after buying an additional 3,862 shares during the last quarter. PacWest Financial Management Inc boosted its stake in shares of Starbucks Corp. by 0.8% in the first quarter. PacWest Financial Management Inc now owns 41,224 shares of the coffee company’s stock valued at $2,461,000 after buying an additional 322 shares during the last quarter. Finally, IMS Capital Management boosted its stake in shares of Starbucks Corp. by 3.3% in the first quarter. IMS Capital Management now owns 20,707 shares of the coffee company’s stock valued at $1,236,000 after buying an additional 663 shares during the last quarter. 68.13% of the stock is currently owned by hedge funds and other institutional investors.
Starbucks Corp. Company Profile
Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The Company purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts.
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