Starbucks (NASDAQ:SBUX) Reaches New 52-Week Low After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX)’s share price reached a new 52-week low during trading on Tuesday after Piper Sandler lowered their price target on the stock from $88.00 to $85.00. Piper Sandler currently has a neutral rating on the stock. Starbucks traded as low as $72.13 and last traded at $72.58, with a volume of 2279499 shares changing hands. The stock had previously closed at $72.90.

A number of other brokerages have also recently commented on SBUX. DZ Bank cut Starbucks from a “buy” rating to a “hold” rating and set a $75.00 price target for the company. in a research report on Friday, May 3rd. BTIG Research decreased their target price on shares of Starbucks from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Wednesday, May 1st. Deutsche Bank Aktiengesellschaft lowered shares of Starbucks from a “buy” rating to a “hold” rating and dropped their price target for the stock from $108.00 to $89.00 in a research report on Wednesday, May 1st. Stifel Nicolaus decreased their price objective on shares of Starbucks from $90.00 to $80.00 and set a “hold” rating on the stock in a research report on Wednesday, May 1st. Finally, UBS Group dropped their target price on shares of Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a report on Wednesday, May 1st. Seventeen equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $96.43.

Insider Buying and Selling

In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction that occurred on Monday, April 15th. The stock was sold at an average price of $85.39, for a total transaction of $277,517.50. Following the sale, the chief executive officer now directly owns 81,199 shares in the company, valued at $6,933,582.61. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Over the last quarter, insiders sold 7,250 shares of company stock worth $651,738. Corporate insiders own 1.98% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Vima LLC bought a new position in Starbucks during the 4th quarter valued at about $26,000. Scarborough Advisors LLC bought a new stake in shares of Starbucks during the 4th quarter worth approximately $26,000. DSM Capital Partners LLC purchased a new stake in shares of Starbucks during the fourth quarter valued at $27,000. Riggs Asset Managment Co. Inc. grew its holdings in shares of Starbucks by 1,578.9% in the third quarter. Riggs Asset Managment Co. Inc. now owns 319 shares of the coffee company’s stock worth $29,000 after purchasing an additional 300 shares during the last quarter. Finally, Fairman Group LLC purchased a new position in Starbucks in the 4th quarter worth about $30,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Performance

The company has a market cap of $83.25 billion, a P/E ratio of 20.25, a price-to-earnings-growth ratio of 1.58 and a beta of 0.97. The business’s fifty day moving average is $88.03 and its two-hundred day moving average is $93.53.

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 the consensus estimate of $0.79 by ($0.11). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The company had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. During the same period in the prior year, the firm posted $0.74 EPS. The business’s revenue was down 1.8% on a year-over-year basis. Analysts expect that Starbucks Co. will post 3.63 EPS for the current fiscal year.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Stockholders of record on Friday, May 17th will be given a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.10%. The ex-dividend date of this dividend 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.