Starbucks (SBUX) Lifted to Buy at BidaskClub

BidaskClub upgraded shares of Starbucks (NASDAQ:SBUX) from a hold rating to a buy rating in a report issued on Tuesday morning.

SBUX has been the subject of a number of other reports. UBS Group restated a buy rating on shares of Starbucks in a research note on Wednesday, June 20th. Wedbush cut their price target on Starbucks from $54.00 to $53.00 and set a neutral rating for the company in a research note on Friday, July 27th. Zacks Investment Research downgraded Starbucks from a hold rating to a sell rating in a research note on Friday, September 28th. Telsey Advisory Group cut Starbucks from an outperform rating to a market perform rating and lowered their price objective for the company from $70.00 to $60.00 in a research report on Wednesday, June 20th. Finally, KeyCorp assumed coverage on Starbucks in a research report on Wednesday, October 3rd. They set an overweight rating and a $65.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, thirteen have given a hold rating and seventeen have issued a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of $60.35.

Starbucks stock opened at $56.45 on Tuesday. The stock has a market cap of $76.68 billion, a price-to-earnings ratio of 26.94, a PEG ratio of 1.69 and a beta of 0.60. Starbucks has a 52-week low of $47.37 and a 52-week high of $61.94. The company has a quick ratio of 0.76, a current ratio of 1.01 and a debt-to-equity ratio of 1.54.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, July 26th. The coffee company reported $0.62 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.60 by $0.02. The business had revenue of $6.31 billion during the quarter, compared to the consensus estimate of $6.25 billion. Starbucks had a return on equity of 67.11% and a net margin of 18.87%. The business’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.55 EPS. On average, sell-side analysts expect that Starbucks will post 2.4 earnings per share for the current fiscal year.

In related news, Director Myron E. Ullman III sold 99,166 shares of the business’s stock in a transaction that occurred on Wednesday, September 12th. The stock was sold at an average price of $55.05, for a total value of $5,459,088.30. Following the transaction, the director now directly owns 29,000 shares of the company’s stock, valued at approximately $1,596,450. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Rosalind G. Brewer purchased 5,000 shares of the stock in a transaction that occurred on Monday, August 20th. The stock was acquired at an average cost of $54.04 per share, for a total transaction of $270,200.00. Following the completion of the acquisition, the insider now owns 7,302 shares in the company, valued at approximately $394,600.08. The disclosure for this purchase can be found here. Over the last three months, insiders sold 295,832 shares of company stock worth $15,834,037. 3.48% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Natixis purchased a new position in Starbucks in the 2nd quarter worth approximately $36,083,000. Commerzbank Aktiengesellschaft FI increased its stake in Starbucks by 115.3% in the 2nd quarter. Commerzbank Aktiengesellschaft FI now owns 697,709 shares of the coffee company’s stock worth $34,083,000 after acquiring an additional 373,651 shares during the last quarter. Point72 Hong Kong Ltd bought a new stake in Starbucks in the 2nd quarter worth approximately $115,000. RB Capital Management LLC increased its stake in Starbucks by 5.1% in the 2nd quarter. RB Capital Management LLC now owns 56,708 shares of the coffee company’s stock worth $2,770,000 after acquiring an additional 2,775 shares during the last quarter. Finally, Paloma Partners Management Co increased its stake in Starbucks by 19.8% in the 2nd quarter. Paloma Partners Management Co now owns 36,141 shares of the coffee company’s stock worth $1,765,000 after acquiring an additional 5,961 shares during the last quarter. 71.90% of the stock is currently owned by institutional investors.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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