Starbucks (NASDAQ:SBUX) Stock Price Down 3.6% After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s share price fell 3.6% during mid-day trading on Monday after Citigroup lowered their price target on the stock from $85.00 to $80.00. Citigroup currently has a neutral rating on the stock. Starbucks traded as low as $76.04 and last traded at $76.39. 5,179,779 shares were traded during trading, a decline of 51% from the average session volume of 10,539,317 shares. The stock had previously closed at $79.27.

Other analysts also recently issued reports about the stock. JPMorgan Chase & Co. dropped their price objective on shares of Starbucks from $92.00 to $90.00 and set an “overweight” rating for the company in a report on Wednesday, July 10th. Oppenheimer reiterated a “market perform” rating on shares of Starbucks in a research report on Friday, April 19th. Stifel Nicolaus cut their price objective on shares of Starbucks from $90.00 to $80.00 and set a “hold” rating for the company in a research note on Wednesday, May 1st. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Starbucks from $89.00 to $85.00 and set a “hold” rating on the stock in a research report on Tuesday, July 16th. Finally, Piper Sandler reduced their price objective on Starbucks from $88.00 to $85.00 and set a “neutral” rating on the stock in a research note on Monday, May 6th. Seventeen investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $91.71.

Insider Activity

In related news, CFO Rachel Ruggeri sold 3,750 shares of the business’s stock in a transaction that occurred on Wednesday, May 22nd. The shares were sold at an average price of $80.00, for a total value of $300,000.00. Following the completion of the transaction, the chief financial officer now directly owns 65,431 shares in the company, valued at approximately $5,234,480. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, CFO Rachel Ruggeri sold 3,750 shares of the firm’s stock in a transaction that occurred on Wednesday, May 22nd. The shares were 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 $5,234,480. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael Aaron Conway sold 3,250 shares of the business’s 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 sale, the chief executive officer now owns 78,304 shares of the company’s stock, valued at $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. 1.98% of the stock is currently owned by corporate insiders.

Institutional Trading of Starbucks

Several large investors have recently added to or reduced their stakes in SBUX. Orca Investment Management LLC lifted its position in 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 in the last quarter. Cerity Partners LLC boosted its holdings in Starbucks by 481.9% in the 4th quarter. Cerity Partners LLC now owns 1,547,411 shares of the coffee company’s stock worth $148,567,000 after buying an additional 1,281,471 shares during the period. Cox Capital Mgt LLC raised its holdings in Starbucks by 41.9% during the first quarter. Cox Capital Mgt LLC now owns 45,322 shares of the coffee company’s stock valued at $4,142,000 after acquiring an additional 13,372 shares during the period. Summa Corp. purchased a new position in shares of Starbucks in the fourth quarter valued at about $384,000. Finally, Brevan Howard Capital Management LP bought a new position in shares of Starbucks in the fourth quarter worth about $2,781,000. 72.29% of the stock is currently owned by institutional investors.

Starbucks Price Performance

The firm has a 50-day moving average of $78.01 and a 200-day moving average of $85.54. The stock has a market cap of $86.38 billion, a PE ratio of 21.01, a PEG ratio of 1.80 and a beta of 0.94.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.79 by ($0.11). The company had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The company’s quarterly revenue was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.74 EPS. Equities analysts forecast that Starbucks Co. will post 3.57 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. Investors of record on Friday, August 16th will be issued a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a dividend yield of 2.99%. The ex-dividend date 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.