Starbucks (NASDAQ:SBUX) Raised to Outperform at Evercore ISI

Evercore ISI upgraded shares of Starbucks (NASDAQ:SBUX) from an in-line rating to an outperform rating in a report published on Wednesday, MarketBeat.com reports. They currently have $120.00 price target on the coffee company’s stock, up from their prior price target of $80.00.

Other research analysts also recently issued research reports about the stock. TD Cowen raised shares of Starbucks from a hold rating to a buy rating and raised their price target for the stock from $81.00 to $105.00 in a research note on Tuesday, August 13th. Barclays lowered their price target on Starbucks from $95.00 to $93.00 and set an overweight rating for the company in a report on Wednesday, July 31st. Robert W. Baird raised Starbucks from a neutral rating to an outperform rating and increased their price objective for the stock from $81.00 to $110.00 in a research note on Tuesday, August 13th. Guggenheim decreased their price objective on Starbucks from $100.00 to $91.00 and set a buy rating for the company in a report on Friday, April 19th. Finally, UBS Group dropped their target price on Starbucks from $95.00 to $85.00 and set a neutral rating on the stock in a research report on Wednesday, May 1st. Twelve investment analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of Moderate Buy and a consensus price target of $98.79.

Starbucks Price Performance

NASDAQ:SBUX opened at $94.81 on Wednesday. Starbucks has a 1 year low of $71.55 and a 1 year high of $107.66. The firm has a market capitalization of $107.39 billion, a price-to-earnings ratio of 26.12, a PEG ratio of 2.25 and a beta of 0.94. The business has a 50 day simple moving average of $78.23 and a 200-day simple moving average of $83.92.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.93. Starbucks had a negative return on equity of 49.38% and a net margin of 11.16%. The business had revenue of $9.11 billion during the quarter, compared to analyst estimates of $9.25 billion. During the same quarter in the previous year, the business earned $1.00 earnings per share. The company’s revenue for the quarter was down .6% compared to the same quarter last year. As a group, analysts expect that Starbucks will post 3.55 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 30th. Shareholders of record on Friday, August 16th will be given a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a yield of 2.40%. The ex-dividend date is Friday, August 16th. Starbucks’s dividend payout ratio is presently 62.81%.

Insider Activity

In related news, CFO Rachel Ruggeri sold 3,750 shares of the company’s stock in a transaction dated 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 transaction, the chief financial officer now owns 65,431 shares in the company, valued at approximately $5,234,480. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction on Friday, June 14th. The shares were sold at an average price of $80.00, for a total transaction of $260,000.00. Following the sale, the chief executive officer now owns 78,304 shares of the company’s stock, valued at approximately $6,264,320. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Rachel Ruggeri sold 3,750 shares of the company’s stock in a transaction on Wednesday, May 22nd. The stock was sold at an average price of $80.00, for a total transaction of $300,000.00. Following the sale, the chief financial officer now directly owns 65,431 shares of the company’s stock, valued at approximately $5,234,480. The disclosure for this sale can be found here. Insiders have sold a total of 10,540 shares of company stock worth $879,291 over the last 90 days. 1.98% of the stock is currently owned by company insiders.

Institutional Trading of Starbucks

Several large investors have recently bought and sold shares of the business. Vima LLC purchased a new position in Starbucks during the fourth quarter worth approximately $26,000. Scarborough Advisors LLC acquired a new position in shares of Starbucks during the 4th quarter valued at about $26,000. New Millennium Group LLC purchased a new stake in shares of Starbucks in the second quarter valued at about $26,000. Stephens Consulting LLC increased its position in Starbucks by 498.2% during the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after purchasing an additional 279 shares during the last quarter. Finally, DSM Capital Partners LLC purchased a new position in Starbucks during the fourth quarter worth about $27,000. Hedge funds and other institutional investors 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.