Starbucks (NASDAQ:SBUX) Shares Down 3.5% Following Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) was down 3.5% during trading on Thursday after Barclays lowered their price target on the stock from $95.00 to $93.00. Barclays currently has an overweight rating on the stock. Starbucks traded as low as $75.09 and last traded at $75.20. Approximately 2,905,249 shares traded hands during trading, a decline of 73% from the average daily volume of 10,740,833 shares. The stock had previously closed at $77.95.

Other equities research analysts also recently issued research reports about the company. Stifel Nicolaus dropped their target price on Starbucks from $90.00 to $80.00 and set a “hold” rating on the stock in a research report on Wednesday, May 1st. JPMorgan Chase & Co. decreased their price target on Starbucks from $92.00 to $90.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 10th. DZ Bank downgraded shares of Starbucks from a “buy” rating to a “hold” rating and set a $75.00 price target for the company. in a report on Friday, May 3rd. William Blair cut shares of Starbucks from an “outperform” rating to a “market perform” rating in a research report on Wednesday, May 1st. Finally, Morgan Stanley reissued an “overweight” rating and issued a $98.00 target price on shares of Starbucks in a research note on Wednesday. Seventeen research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $90.88.

Insiders Place Their Bets

In other news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction that occurred on Friday, June 14th. The stock was sold at an average price of $80.00, for a total value of $260,000.00. Following the completion of the transaction, the chief executive officer now owns 78,304 shares of the company’s stock, valued at approximately $6,264,320. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CFO Rachel Ruggeri sold 3,750 shares of the business’s stock in a transaction dated Wednesday, May 22nd. The shares were sold at an average price of $80.00, for a total transaction of $300,000.00. Following the sale, the chief financial officer now owns 65,431 shares of the company’s stock, valued at $5,234,480. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction that occurred on Friday, June 14th. The shares were sold at an average price of $80.00, for a total transaction of $260,000.00. Following the transaction, the chief executive officer now directly owns 78,304 shares of the company’s stock, valued at approximately $6,264,320. The disclosure for this sale can be found here. Insiders sold 7,250 shares of company stock worth $579,375 over the last three months. Company insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Hedge funds and other institutional investors have recently made changes to their positions in the stock. PFG Advisors purchased a new position in Starbucks during the fourth quarter valued at approximately $216,000. Miracle Mile Advisors LLC lifted its stake in shares of Starbucks by 63.5% during the 4th quarter. Miracle Mile Advisors LLC now owns 6,890 shares of the coffee company’s stock valued at $662,000 after buying an additional 2,676 shares in the last quarter. First Citizens Bank & Trust Co. boosted its holdings in Starbucks by 4.0% in the 4th quarter. First Citizens Bank & Trust Co. now owns 11,490 shares of the coffee company’s stock worth $1,103,000 after buying an additional 437 shares during the period. TIAA Trust National Association increased its stake in Starbucks by 13.1% in the 4th quarter. TIAA Trust National Association now owns 68,652 shares of the coffee company’s stock worth $6,591,000 after buying an additional 7,973 shares in the last quarter. Finally, Householder Group Estate & Retirement Specialist LLC raised its holdings in Starbucks by 5.6% during the fourth quarter. Householder Group Estate & Retirement Specialist LLC now owns 3,989 shares of the coffee company’s stock valued at $383,000 after acquiring an additional 211 shares during the period. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Stock Down 4.4 %

The firm has a market capitalization of $84.40 billion, a P/E ratio of 20.72, a PEG ratio of 1.72 and a beta of 0.94. The stock has a fifty day simple moving average of $77.74 and a 200 day simple moving average of $84.84.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Tuesday, July 30th. The coffee company reported $0.93 EPS for the quarter, hitting analysts’ consensus estimates of $0.93. Starbucks had a negative return on equity of 48.78% and a net margin of 11.16%. The company had revenue of $9.11 billion for the quarter, compared to analysts’ expectations of $9.25 billion. During the same period in the previous year, the firm earned $1.00 EPS. The firm’s revenue was down .6% compared to the same quarter last year. Research analysts anticipate that Starbucks Co. will post 3.57 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 30th. Shareholders of record on Friday, August 16th will be issued a $0.57 dividend. The ex-dividend date is Friday, August 16th. This represents a $2.28 dividend on an annualized basis and a yield of 3.06%. Starbucks’s dividend payout ratio is currently 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.