Citigroup Trims Starbucks (NASDAQ:SBUX) Target Price to $85.00

Starbucks (NASDAQ:SBUX) had its target price trimmed by Citigroup from $95.00 to $85.00 in a research report released on Wednesday morning, Benzinga reports. The brokerage currently has a neutral rating on the coffee company’s stock.

Other analysts also recently issued reports about the company. UBS Group cut their target price on Starbucks from $95.00 to $85.00 and set a neutral rating for the company in a research report on Wednesday. Gordon Haskett downgraded Starbucks from a buy rating to a hold rating and set a $100.00 target price for the company. in a research report on Tuesday, January 16th. TD Cowen dropped 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. Stifel Nicolaus dropped their price objective on Starbucks from $90.00 to $80.00 and set a hold rating for the company in a research report on Wednesday. Finally, Wedbush dropped their price objective on Starbucks from $95.00 to $92.00 and set a neutral rating for the company in a research report on Friday, April 26th. Seventeen analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of Hold and a consensus target price of $97.09.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $73.11 on Wednesday. The stock’s fifty day moving average price is $89.34 and its two-hundred day moving average price is $93.98. Starbucks has a one year low of $72.67 and a one year high of $108.12. The firm has a market cap of $82.81 billion, a price-to-earnings ratio of 20.14, a P/E/G ratio of 1.28 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 EPS for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). The firm had revenue of $8.56 billion during the quarter, compared to analyst estimates of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The business’s quarterly revenue was down 1.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.74 earnings per share. On average, equities analysts anticipate that Starbucks will post 3.89 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Stockholders of record on Friday, May 17th will be paid a $0.57 dividend. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.28 annualized dividend and a dividend yield of 3.12%. Starbucks’s payout ratio is 62.81%.

Insider Activity

In related news, CEO Michael Aaron Conway sold 3,250 shares of the firm’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 completion of the sale, the chief executive officer now owns 81,199 shares of the company’s stock, valued at $6,933,582.61. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last quarter, insiders sold 7,250 shares of company stock valued at $651,738. Company insiders own 1.98% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Large investors have recently added to or reduced their stakes in the business. Orca Investment Management LLC grew its stake in Starbucks by 6.6% during the fourth quarter. Orca Investment Management LLC now owns 7,494 shares of the coffee company’s stock worth $719,000 after purchasing an additional 466 shares during the period. Cerity Partners LLC grew its stake in Starbucks by 481.9% during the fourth quarter. Cerity Partners LLC now owns 1,547,411 shares of the coffee company’s stock worth $148,567,000 after purchasing an additional 1,281,471 shares during the period. Metis Global Partners LLC grew its stake in Starbucks by 15.4% during the third quarter. Metis Global Partners LLC now owns 56,939 shares of the coffee company’s stock worth $5,197,000 after purchasing an additional 7,619 shares during the period. FFT Wealth Management LLC acquired a new stake in Starbucks during the fourth quarter worth approximately $209,000. Finally, Tyche Wealth Partners LLC acquired a new stake in Starbucks during the fourth quarter worth approximately $794,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

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.