Starbucks (NASDAQ:SBUX) Reaches New 52-Week High – Still a Buy?

Starbucks Co. (NASDAQ:SBUX) shares reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $103.21 and last traded at $102.81, with a volume of 331845 shares trading hands. The stock had previously closed at $102.50.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on SBUX. Wedbush reduced their price target on shares of Starbucks from $98.00 to $95.00 and set a “neutral” rating for the company in a research note on Thursday, October 31st. JPMorgan Chase & Co. raised their price target on Starbucks from $90.00 to $105.00 and gave the stock an “overweight” rating in a research note on Monday, September 30th. Jefferies Financial Group cut Starbucks from a “hold” rating to an “underperform” rating and reduced their price objective for the company from $80.00 to $76.00 in a research report on Tuesday, September 24th. Royal Bank of Canada started coverage on Starbucks in a research report on Friday, November 15th. They issued an “outperform” rating and a $115.00 target price on the stock. Finally, Barclays reduced their price target on shares of Starbucks from $110.00 to $108.00 and set an “overweight” rating for the company in a research report on Thursday, October 31st. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Starbucks currently has a consensus rating of “Moderate Buy” and a consensus price target of $102.81.

Starbucks Price Performance

The firm has a 50-day moving average of $97.11 and a 200-day moving average of $87.19. The stock has a market cap of $116.70 billion, a PE ratio of 30.97, a PEG ratio of 3.00 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.80. Starbucks had a negative return on equity of 46.39% and a net margin of 10.40%. The firm had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.60 billion. During the same quarter last year, the business posted $1.06 earnings per share. The firm’s revenue was down 3.2% on a year-over-year basis. Equities analysts forecast that Starbucks Co. will post 3.12 EPS for the current fiscal year.

Starbucks Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 annualized dividend and a dividend yield of 2.37%. This is a boost from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s dividend payout ratio (DPR) is currently 73.72%.

Insider Buying and Selling

In other Starbucks news, CFO Rachel Ruggeri sold 1,491 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $99.54, for a total transaction of $148,414.14. Following the completion of the transaction, the chief financial officer now owns 80,124 shares in the company, valued at $7,975,542.96. This trade represents a 1.83 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Jorgen Vig Knudstorp purchased 380 shares of the business’s stock in a transaction on Friday, September 6th. The shares were purchased at an average price of $91.50 per share, with a total value of $34,770.00. Following the acquisition, the director now directly owns 36,242 shares in the company, valued at $3,316,143. This represents a 1.06 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 1.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Starbucks

Institutional investors and hedge funds have recently modified their holdings of the business. Strategic Investment Solutions Inc. IL bought a new stake in shares of Starbucks during the 2nd quarter worth approximately $25,000. New Millennium Group LLC bought a new stake in Starbucks during the 2nd quarter valued at $26,000. Stephens Consulting LLC raised its position in Starbucks by 498.2% during the 2nd quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock valued at $26,000 after purchasing an additional 279 shares in the last quarter. Hobbs Group Advisors LLC bought a new stake in Starbucks during the 2nd quarter valued at $27,000. Finally, Olistico Wealth LLC bought a new stake in Starbucks during the 2nd quarter valued at $31,000. 72.29% of the stock is owned by 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.