Starbucks (NASDAQ:SBUX) Shares Down 0.7% Following Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s share price traded down 0.7% during trading on Tuesday after Piper Sandler lowered their price target on the stock from $88.00 to $85.00. Piper Sandler currently has a neutral rating on the stock. Starbucks traded as low as $72.13 and last traded at $72.36. 6,086,727 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 9,528,637 shares. The stock had previously closed at $72.90.

SBUX has been the topic of a number of other research reports. DZ Bank lowered Starbucks from a “buy” rating to a “hold” rating and set a $75.00 target price on the stock. in a research note on Friday. Wells Fargo & Company reduced their target price on Starbucks from $105.00 to $90.00 and set an “overweight” rating on the stock in a report on Wednesday, May 1st. TD Cowen lowered their target price on Starbucks from $100.00 to $85.00 and set a “hold” rating on the stock in a research report on Wednesday, May 1st. William Blair downgraded Starbucks from an “outperform” rating to a “market perform” rating in a research report on Wednesday, May 1st. Finally, UBS Group reduced their price target on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a research report on Wednesday, May 1st. Seventeen investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $96.43.

Insider Buying and Selling at Starbucks

In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction dated Monday, April 15th. The shares were 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 approximately $6,933,582.61. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders have sold 7,250 shares of company stock worth $651,738 over the last quarter. 1.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in Starbucks by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 107,933,270 shares of the coffee company’s stock worth $10,362,673,000 after purchasing an additional 1,041,622 shares during the last quarter. Northern Trust Corp boosted its stake in Starbucks by 1.5% during the third quarter. Northern Trust Corp now owns 15,217,752 shares of the coffee company’s stock worth $1,388,924,000 after buying an additional 232,031 shares in the last quarter. Norges Bank bought a new stake in Starbucks in the fourth quarter valued at about $1,240,652,000. Fisher Asset Management LLC lifted its stake in Starbucks by 2.4% during the fourth quarter. Fisher Asset Management LLC now owns 11,367,331 shares of the coffee company’s stock worth $1,091,378,000 after purchasing an additional 268,030 shares during the period. Finally, Invesco Ltd. grew its position in Starbucks by 11.8% in the third quarter. Invesco Ltd. now owns 10,541,739 shares of the coffee company’s stock valued at $962,144,000 after acquiring an additional 1,115,051 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Stock Down 0.8 %

The stock’s 50-day simple moving average is $88.46 and its 200 day simple moving average is $93.69. The stock has a market capitalization of $81.88 billion, a price-to-earnings ratio of 19.93, a price-to-earnings-growth ratio of 1.58 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its earnings results 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 business had revenue of $8.56 billion for the quarter, compared to analyst estimates of $9.12 billion. Starbucks had a negative return on equity of 49.91% and a net margin of 11.38%. Starbucks’s revenue was down 1.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.74 EPS. As a group, equities research analysts anticipate that Starbucks Co. will post 3.63 earnings per share for the current year.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be paid a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 3.15%. The ex-dividend date is Thursday, May 16th. Starbucks’s dividend 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.