Starbucks (NASDAQ:SBUX) Stock Price Down 0.2% on Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s stock price was down 0.2% during trading on Thursday after TD Cowen lowered their price target on the stock from $85.00 to $81.00. TD Cowen currently has a hold rating on the stock. Starbucks traded as low as $73.81 and last traded at $74.92. Approximately 2,678,368 shares changed hands during trading, a decline of 74% from the average daily volume of 10,352,246 shares. The stock had previously closed at $75.10.

Other research analysts have also recently issued reports about the stock. The Goldman Sachs Group began coverage on shares of Starbucks in a report on Thursday, June 13th. They set a “buy” rating and a $100.00 target price on the stock. Morgan Stanley lowered their target price on Starbucks from $104.00 to $98.00 and set an “overweight” rating for the company in a research note on Friday, July 12th. Wedbush reaffirmed a “neutral” rating and set a $81.00 target price on shares of Starbucks in a research note on Friday, June 28th. Wells Fargo & Company dropped their target price on Starbucks from $105.00 to $90.00 and set an “overweight” rating for the company in a research report on Wednesday, May 1st. Finally, Deutsche Bank Aktiengesellschaft cut their price target on Starbucks from $89.00 to $85.00 and set a “hold” rating on the stock in a research note on Tuesday. Seventeen research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat, Starbucks has an average rating of “Hold” and an average target price of $92.92.

Insider Activity

In related news, CFO Rachel Ruggeri sold 3,750 shares of the business’s stock in a transaction dated Wednesday, May 22nd. The shares were sold at an average price of $80.00, for a total value of $300,000.00. Following the transaction, the chief financial officer now directly owns 65,431 shares of the company’s stock, valued at approximately $5,234,480. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction dated 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 transaction, the chief executive officer now owns 78,304 shares in the company, valued at $6,264,320. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 transaction of $300,000.00. Following the completion of the sale, the chief financial officer now directly owns 65,431 shares in the company, valued at approximately $5,234,480. The disclosure for this sale can be found here. Insiders sold a total of 7,500 shares of company stock worth $601,375 over the last quarter. Insiders own 1.98% of the company’s stock.

Institutional Investors Weigh In On Starbucks

A number of hedge funds and other institutional investors have recently bought and sold shares of SBUX. Scarborough Advisors LLC purchased a new position in shares of Starbucks in the fourth quarter valued at $26,000. Vima LLC purchased a new position in Starbucks during the 4th quarter valued at about $26,000. DSM Capital Partners LLC bought a new stake in shares of Starbucks during the fourth quarter valued at about $27,000. Fairman Group LLC purchased a new stake in shares of Starbucks in the fourth quarter worth about $30,000. Finally, Cypress Capital Management LLC WY boosted its position in shares of Starbucks by 133.1% in the fourth quarter. Cypress Capital Management LLC WY now owns 324 shares of the coffee company’s stock valued at $31,000 after acquiring an additional 185 shares during the period. Institutional investors own 72.29% of the company’s stock.

Starbucks Price Performance

The firm’s 50 day moving average is $77.96 and its 200 day moving average is $86.08. The company has a market cap of $84.61 billion, a PE ratio of 20.64, a PEG ratio of 1.65 and a beta of 0.94.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The business had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. During the same quarter last year, the business posted $0.74 EPS. The business’s revenue was down 1.8% compared to the same quarter last year. As a group, analysts anticipate that Starbucks Co. will post 3.58 EPS for the current year.

Starbucks Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Investors of record on Friday, August 16th will be given a $0.57 dividend. The ex-dividend date is Friday, August 16th. This represents a $2.28 annualized dividend and a yield of 3.05%. Starbucks’s dividend payout ratio (DPR) is presently 62.81%.

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.