Starbucks (NASDAQ:SBUX) Raised to “Hold” at StockNews.com

StockNews.com upgraded shares of Starbucks (NASDAQ:SBUX) from a sell rating to a hold rating in a research note issued to investors on Saturday.

Several other brokerages also recently issued reports on SBUX. Wells Fargo & Company cut their price target on shares of Starbucks from $125.00 to $100.00 and set an “overweight” rating for the company in a report on Tuesday, April 22nd. Citigroup reduced their target price on shares of Starbucks from $88.00 to $84.00 and set a “neutral” rating for the company in a report on Wednesday, April 30th. UBS Group dropped their price objective on shares of Starbucks from $105.00 to $90.00 and set a “neutral” rating on the stock in a research report on Monday, April 28th. Jefferies Financial Group raised shares of Starbucks from an “underperform” rating to a “hold” rating and set a $76.00 price target on the stock in a research report on Wednesday, April 9th. Finally, Argus raised shares of Starbucks from a “hold” rating to a “buy” rating and set a $115.00 price target on the stock in a report on Tuesday, March 18th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and sixteen have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $98.72.

Starbucks Price Performance

SBUX stock opened at $85.67 on Friday. The firm has a 50 day simple moving average of $89.48 and a 200 day simple moving average of $96.80. Starbucks has a 12 month low of $71.55 and a 12 month high of $117.46. The firm has a market cap of $97.36 billion, a PE ratio of 27.64, a P/E/G ratio of 3.59 and a beta of 0.99.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, April 29th. The coffee company reported $0.41 earnings per share for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.10). Starbucks had a net margin of 9.73% and a negative return on equity of 44.97%. The business had revenue of $8.76 billion for the quarter, compared to the consensus estimate of $8.90 billion. During the same quarter in the prior year, the business posted $0.68 EPS. The firm’s revenue for the quarter was up 2.3% compared to the same quarter last year. As a group, sell-side analysts expect that Starbucks will post 2.99 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 30th. Shareholders of record on Friday, May 16th will be issued a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a yield of 2.85%. The ex-dividend date is Friday, May 16th. Starbucks’s dividend payout ratio (DPR) is presently 88.41%.

Hedge Funds Weigh In On Starbucks

Hedge funds have recently bought and sold shares of the company. Financial Life Planners purchased a new stake in Starbucks in the fourth quarter valued at approximately $25,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Starbucks in the fourth quarter valued at approximately $25,000. Graney & King LLC purchased a new position in shares of Starbucks during the fourth quarter worth approximately $26,000. Collier Financial purchased a new position in shares of Starbucks during the fourth quarter worth approximately $27,000. Finally, Runnymede Capital Advisors Inc. purchased a new position in shares of Starbucks during the fourth quarter worth approximately $27,000. Hedge funds and other 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.