Starbucks (NASDAQ:SBUX) Research Coverage Started at Royal Bank of Canada

Royal Bank of Canada started coverage on shares of Starbucks (NASDAQ:SBUX) in a research note published on Friday morning, MarketBeat reports. The firm issued an outperform rating and a $115.00 target price on the coffee company’s stock.

Several other analysts also recently commented on the stock. Robert W. Baird upgraded shares of Starbucks from a “neutral” rating to an “outperform” rating and increased their target price for the company from $81.00 to $110.00 in a report on Tuesday, August 13th. TD Cowen reiterated a “buy” rating and issued a $110.00 target price on shares of Starbucks in a report on Monday, November 11th. Wedbush lowered their target price on shares of Starbucks from $98.00 to $95.00 and set a “neutral” rating for the company in a report on Thursday, October 31st. Piper Sandler upgraded shares of Starbucks from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $85.00 to $103.00 in a report on Tuesday, August 13th. Finally, Stifel Nicolaus raised their price objective on shares of Starbucks from $105.00 to $110.00 and gave the stock a “buy” rating in a report on Thursday, October 31st. Three analysts have rated the stock with a sell rating, nine have issued a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Starbucks presently has an average rating of “Moderate Buy” and a consensus target price of $102.81.

Starbucks Trading Down 0.8 %

SBUX opened at $98.42 on Friday. The company’s fifty day moving average price is $96.75 and its two-hundred day moving average price is $86.26. Starbucks has a 1-year low of $71.55 and a 1-year high of $107.66. The company has a market cap of $111.53 billion, a price-to-earnings ratio of 29.73, a PEG ratio of 2.85 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Wednesday, October 30th. The coffee company reported $0.80 EPS for the quarter, meeting the consensus estimate of $0.80. The company had revenue of $9.07 billion during the quarter, compared to the consensus estimate of $9.60 billion. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The firm’s revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.06 earnings per share. As a group, equities analysts forecast that Starbucks will post 3.15 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be paid a $0.61 dividend. This is an increase from Starbucks’s previous quarterly dividend of $0.57. This represents a $2.44 dividend on an annualized basis and a yield of 2.48%. The ex-dividend date of this dividend is Friday, November 15th. Starbucks’s dividend payout ratio (DPR) is currently 68.88%.

Insider Activity at Starbucks

In related news, Director Jorgen Vig Knudstorp bought 380 shares of the stock in a transaction that occurred on Friday, September 6th. The shares were acquired at an average cost of $91.50 per share, with a total value of $34,770.00. Following the completion of the purchase, the director now directly owns 36,242 shares of the company’s stock, valued at $3,316,143. This trade represents a 1.06 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. 1.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Starbucks

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP raised its stake in shares of Starbucks by 100.6% during the third quarter. Wellington Management Group LLP now owns 15,149,937 shares of the coffee company’s stock worth $1,476,967,000 after acquiring an additional 7,598,146 shares in the last quarter. FMR LLC raised its stake in shares of Starbucks by 55.0% during the third quarter. FMR LLC now owns 19,779,859 shares of the coffee company’s stock worth $1,928,339,000 after acquiring an additional 7,015,375 shares in the last quarter. Ontario Teachers Pension Plan Board purchased a new position in shares of Starbucks during the first quarter worth approximately $415,167,000. Marshall Wace LLP raised its stake in shares of Starbucks by 1,466.3% during the second quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock worth $260,870,000 after acquiring an additional 3,136,992 shares in the last quarter. Finally, Diamond Hill Capital Management Inc. purchased a new position in shares of Starbucks during the second quarter worth approximately $243,910,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

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.