Starbucks (NASDAQ:SBUX) Shares Down 1.6% Following Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) fell 1.6% during mid-day trading on Monday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from $89.00 to $85.00. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. Starbucks traded as low as $73.48 and last traded at $73.64. 2,127,711 shares changed hands during trading, a decline of 79% from the average session volume of 10,316,187 shares. The stock had previously closed at $74.83.

A number of other brokerages have also issued reports on SBUX. Evercore ISI lowered Starbucks from an “outperform” rating to an “inline” rating and cut their target price for the company from $92.00 to $80.00 in a research report on Tuesday. William Blair downgraded Starbucks from an “outperform” rating to a “market perform” rating in a research note on Wednesday, May 1st. TD Cowen restated a “hold” rating and set a $85.00 price objective on shares of Starbucks in a research note on Thursday, June 13th. Stifel Nicolaus decreased their target price on Starbucks from $90.00 to $80.00 and set a “hold” rating for the company in a research report on Wednesday, May 1st. Finally, Wells Fargo & Company reduced their price objective on Starbucks from $105.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 1st. Seventeen investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $93.08.

Insider Transactions at Starbucks

In related news, CEO Michael Aaron Conway sold 3,250 shares of the 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 completion of the sale, 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 document filed with the SEC, which can be accessed through the SEC website. In related news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction 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 in the company, valued at approximately $6,264,320. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Rachel Ruggeri sold 3,750 shares of the business’s stock in a transaction dated Wednesday, May 22nd. The stock was sold at an average price of $80.00, for a total value of $300,000.00. Following the sale, the chief financial officer now owns 65,431 shares in the company, valued at approximately $5,234,480. The disclosure for this sale can be found here. Insiders have sold 7,500 shares of company stock valued at $601,375 in the last quarter. Insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Several large investors have recently added to or reduced their stakes in SBUX. Sky Investment Group LLC grew its holdings in shares of Starbucks by 2.9% during the second quarter. Sky Investment Group LLC now owns 20,265 shares of the coffee company’s stock valued at $1,578,000 after buying an additional 562 shares in the last quarter. Addenda Capital Inc. increased its holdings in shares of Starbucks by 27.8% in the 2nd quarter. Addenda Capital Inc. now owns 79,253 shares of the coffee company’s stock valued at $6,170,000 after purchasing an additional 17,253 shares during the period. ORG Partners LLC lifted its position in shares of Starbucks by 292.1% in the second quarter. ORG Partners LLC now owns 3,701 shares of the coffee company’s stock worth $286,000 after purchasing an additional 2,757 shares in the last quarter. Great Valley Advisor Group Inc. boosted its holdings in shares of Starbucks by 45.8% during the second quarter. Great Valley Advisor Group Inc. now owns 17,123 shares of the coffee company’s stock worth $1,333,000 after purchasing an additional 5,377 shares during the period. Finally, Wealth Enhancement Advisory Services LLC grew its position in Starbucks by 4.5% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 555,484 shares of the coffee company’s stock valued at $43,244,000 after purchasing an additional 24,164 shares in the last quarter. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks Stock Performance

The stock has a market cap of $85.53 billion, a price-to-earnings ratio of 20.80, a price-to-earnings-growth ratio of 1.64 and a beta of 0.94. The company’s 50 day simple moving average is $77.93 and its two-hundred day simple moving average is $86.16.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 EPS for the quarter, missing the consensus estimate of $0.79 by ($0.11). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The company had revenue of $8.56 billion for the quarter, compared to analysts’ expectations of $9.12 billion. During the same quarter in the prior year, the firm earned $0.74 earnings per share. The company’s revenue was down 1.8% on a year-over-year basis. On average, equities research analysts predict that Starbucks Co. will post 3.58 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Friday, August 16th will be paid a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.02%. The ex-dividend date of this dividend is Friday, August 16th. Starbucks’s dividend payout ratio (DPR) is presently 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.