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

Starbucks Co. (NASDAQ:SBUX)’s stock price was down 1.6% during mid-day trading on Friday after HSBC lowered their price target on the stock from $107.00 to $84.00. HSBC currently has a hold rating on the stock. Starbucks traded as low as $73.74 and last traded at $73.75. Approximately 5,875,128 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 9,268,319 shares. The stock had previously closed at $74.93.

Several other equities analysts have also issued reports on SBUX. Barclays decreased their price objective on Starbucks from $116.00 to $112.00 and set an “overweight” rating for the company in a research report on Wednesday, January 31st. Jefferies Financial Group decreased their price objective on Starbucks from $94.00 to $84.00 and set a “hold” rating for the company in a research report on Wednesday. Citigroup decreased their price objective on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a research report on Wednesday. TD Cowen decreased their price objective on Starbucks from $100.00 to $85.00 and set a “hold” rating for the company in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft lowered Starbucks from a “buy” rating to a “hold” rating and decreased their price objective for the company from $108.00 to $89.00 in a research report on Wednesday. Seventeen research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $97.09.

Insider Activity

In other news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction that occurred on Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the completion of the sale, the chief executive officer now owns 81,199 shares of the company’s stock, valued at approximately $6,933,582.61. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In the last 90 days, insiders sold 7,250 shares of company stock valued at $651,738. 1.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Starbucks

A number of large investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. raised its stake in Starbucks by 3.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 20,757 shares of the coffee company’s stock valued at $1,897,000 after acquiring an additional 729 shares during the period. Valley Wealth Managers Inc. bought a new stake in Starbucks in the 1st quarter valued at $4,164,000. Richardson Financial Services Inc. raised its stake in Starbucks by 17.5% in the 1st quarter. Richardson Financial Services Inc. now owns 2,715 shares of the coffee company’s stock valued at $248,000 after acquiring an additional 405 shares during the period. Clarity Capital Partners LLC raised its stake in Starbucks by 20.1% in the 1st quarter. Clarity Capital Partners LLC now owns 11,996 shares of the coffee company’s stock valued at $1,096,000 after acquiring an additional 2,005 shares during the period. Finally, Avidian Wealth Solutions LLC raised its stake in Starbucks by 12.2% in the 1st quarter. Avidian Wealth Solutions LLC now owns 13,238 shares of the coffee company’s stock valued at $1,210,000 after acquiring an additional 1,443 shares during the period. Institutional investors own 72.29% of the company’s stock.

Starbucks Trading Down 2.4 %

The business has a 50 day moving average of $88.89 and a two-hundred day moving average of $93.84. The firm has a market cap of $82.81 billion, a P/E ratio of 20.14, a PEG ratio of 1.39 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). The business had revenue of $8.56 billion during 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 firm’s revenue was down 1.8% on a year-over-year basis. During the same quarter last year, the company posted $0.74 EPS. On average, sell-side analysts predict that Starbucks Co. will post 3.69 EPS for the current year.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be given a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a yield of 3.12%. The ex-dividend date is Thursday, May 16th. Starbucks’s payout ratio is 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.