Starbucks (NASDAQ:SBUX) Stock Rating Reaffirmed by Morgan Stanley

Morgan Stanley restated their overweight rating on shares of Starbucks (NASDAQ:SBUX) in a research note released on Wednesday, Benzinga reports. The brokerage currently has a $98.00 price target on the coffee company’s stock.

Several other research analysts have also recently weighed in on SBUX. Piper Sandler decreased their price target on Starbucks from $88.00 to $85.00 and set a neutral rating for the company in a research note on Monday, May 6th. BTIG Research dropped their price target on shares of Starbucks from $115.00 to $100.00 and set a buy rating on the stock in a report on Wednesday, May 1st. Bank of America lifted their price target on shares of Starbucks from $108.00 to $112.00 and gave the stock a buy rating in a research note on Monday, June 10th. Stifel Nicolaus lowered their price objective on shares of Starbucks from $90.00 to $80.00 and set a hold rating on the stock in a research report on Wednesday, May 1st. Finally, Guggenheim cut their target price on shares of Starbucks from $100.00 to $91.00 and set a buy rating for the company in a research report on Friday, April 19th. Seventeen investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of Hold and a consensus price target of $90.88.

Starbucks Price Performance

NASDAQ:SBUX opened at $75.88 on Wednesday. The firm’s 50-day moving average price is $77.62 and its 200-day moving average price is $84.61. The company has a market capitalization of $85.99 billion, a PE ratio of 20.90, a P/E/G ratio of 1.74 and a beta of 0.94. Starbucks has a 1-year low of $71.55 and a 1-year high of $107.66.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Tuesday, July 30th. The coffee company reported $0.93 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.93. Starbucks had a negative return on equity of 49.38% and a net margin of 11.16%. The business had revenue of $9.11 billion during the quarter, compared to analysts’ expectations of $9.25 billion. During the same quarter in the previous year, the business earned $1.00 earnings per share. The firm’s quarterly revenue was down .6% compared to the same quarter last year. Equities analysts anticipate that Starbucks will post 3.55 EPS for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Stockholders 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 dividend yield of 3.00%. Starbucks’s dividend payout ratio (DPR) is presently 62.81%.

Insider Activity at Starbucks

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SBUX. Orca Investment Management LLC boosted its stake in shares of Starbucks by 6.6% during the fourth quarter. Orca Investment Management LLC now owns 7,494 shares of the coffee company’s stock valued at $719,000 after purchasing an additional 466 shares during the period. Cerity Partners LLC boosted its position in Starbucks by 481.9% in the 4th quarter. Cerity Partners LLC now owns 1,547,411 shares of the coffee company’s stock valued at $148,567,000 after buying an additional 1,281,471 shares during the period. Cox Capital Mgt LLC grew its stake in Starbucks by 41.9% in the 1st quarter. Cox Capital Mgt LLC now owns 45,322 shares of the coffee company’s stock worth $4,142,000 after acquiring an additional 13,372 shares in the last quarter. Summa Corp. purchased a new stake in shares of Starbucks in the fourth quarter valued at approximately $384,000. Finally, Brevan Howard Capital Management LP purchased a new stake in shares of Starbucks in the fourth quarter valued at approximately $2,781,000. Institutional investors own 72.29% of the company’s stock.

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.