Starbucks (NASDAQ:SBUX) Shares Down 0.7% After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) dropped 0.7% 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 $72.36. Approximately 6,086,727 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 9,528,637 shares. The stock had previously closed at $72.90.

Other equities research analysts also recently issued research reports about the company. DZ Bank downgraded Starbucks from a “buy” rating to a “hold” rating and set a $75.00 price target for the company. in a report on Friday, May 3rd. Wedbush reduced their target price on shares of Starbucks from $95.00 to $92.00 and set a “neutral” rating for the company in a report on Friday, April 26th. Morgan Stanley lowered their price target on shares of Starbucks from $120.00 to $115.00 and set an “overweight” rating on the stock in a report on Friday, April 12th. Citigroup reduced their price objective on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a report on Wednesday, May 1st. Finally, Evercore ISI lowered their target price on Starbucks from $120.00 to $92.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 1st. Seventeen research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $96.43.

Insider Transactions at Starbucks

In related news, insider Michael Aaron Conway sold 3,250 shares of the stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $94.03, for a total value of $305,597.50. Following the completion of the transaction, the insider now owns 84,153 shares of the company’s stock, valued at approximately $7,912,906.59. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Over the last 90 days, insiders sold 7,250 shares of company stock valued at $651,738. 1.98% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Entropy Technologies LP bought a new position in Starbucks in the first quarter valued at about $7,484,000. Edmond DE Rothschild Holding S.A. raised its holdings in Starbucks by 60.5% in the 1st quarter. Edmond DE Rothschild Holding S.A. now owns 37,374 shares of the coffee company’s stock valued at $3,416,000 after buying an additional 14,085 shares during the last quarter. MAI Capital Management boosted its position in Starbucks by 17.1% during the 1st quarter. MAI Capital Management now owns 336,763 shares of the coffee company’s stock worth $30,777,000 after buying an additional 49,250 shares during the period. Baltimore Washington Financial Advisors Inc. grew its holdings in Starbucks by 2.9% during the 1st quarter. Baltimore Washington Financial Advisors Inc. now owns 92,275 shares of the coffee company’s stock worth $8,433,000 after acquiring an additional 2,606 shares during the last quarter. Finally, ProShare Advisors LLC increased its position in Starbucks by 20.7% in the 1st quarter. ProShare Advisors LLC now owns 1,267,821 shares of the coffee company’s stock valued at $115,866,000 after acquiring an additional 217,075 shares during the period. 72.29% of the stock is currently owned by institutional investors.

Starbucks Stock Up 1.4 %

The stock has a market cap of $83.25 billion, a P/E ratio of 20.25, a P/E/G ratio of 1.58 and a beta of 0.97. The company’s 50 day moving average price is $88.03 and its 200-day moving average price is $93.53.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.79 by ($0.11). The company had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. Starbucks had a negative return on equity of 49.91% and a net margin of 11.38%. The firm’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same period in the prior year, the business earned $0.74 earnings per share. Equities research analysts anticipate that Starbucks Co. will post 3.63 earnings per share for the current year.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be issued a dividend of $0.57 per share. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.28 annualized dividend and a yield of 3.10%. Starbucks’s payout ratio is 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.