Investors Buy Starbucks (SBUX) on Weakness

Investors purchased shares of Starbucks Co. (NASDAQ:SBUX) on weakness during trading hours on Monday. $121.63 million flowed into the stock on the tick-up and $70.28 million flowed out of the stock on the tick-down, for a money net flow of $51.35 million into the stock. Of all companies tracked, Starbucks had the 14th highest net in-flow for the day. Starbucks traded down ($0.49) for the day and closed at $76.16

A number of research analysts recently weighed in on the stock. Oppenheimer reissued an “outperform” rating and set a $72.00 price target (up from $70.00) on shares of Starbucks in a research report on Friday, January 25th. Mizuho set a $75.00 price target on shares of Starbucks and gave the company a “buy” rating in a research report on Thursday. BidaskClub lowered shares of Starbucks from a “strong-buy” rating to a “buy” rating in a research report on Monday, February 4th. CIBC raised their price target on shares of Starbucks from $70.00 to $72.00 and gave the company an “outperform” rating in a research report on Friday, January 25th. Finally, Zacks Investment Research raised shares of Starbucks from a “hold” rating to a “buy” rating and set a $73.00 price target on the stock in a research report on Monday, January 28th. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average price target of $68.00.

The stock has a market capitalization of $94.35 billion, a P/E ratio of 31.47, a PEG ratio of 2.17 and a beta of 0.51. The company has a debt-to-equity ratio of 7.73, a quick ratio of 1.16 and a current ratio of 1.41.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Thursday, January 24th. The coffee company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.65 by $0.10. The business had revenue of $6.63 billion for the quarter, compared to analyst estimates of $6.49 billion. Starbucks had a net margin of 11.98% and a return on equity of 193.00%. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.65 earnings per share. Equities analysts predict that Starbucks Co. will post 2.72 earnings per share for the current fiscal year.

In other news, EVP Vivek C. Varma sold 50,000 shares of Starbucks stock in a transaction dated Wednesday, February 6th. The shares were sold at an average price of $69.13, for a total value of $3,456,500.00. Following the completion of the transaction, the executive vice president now owns 117,640 shares in the company, valued at $8,132,453.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Clifford Burrows sold 152,634 shares of Starbucks stock in a transaction dated Tuesday, January 29th. The stock was sold at an average price of $67.22, for a total transaction of $10,260,057.48. Following the completion of the transaction, the insider now owns 311,083 shares of the company’s stock, valued at approximately $20,910,999.26. The disclosure for this sale can be found here. In the last ninety days, insiders sold 565,806 shares of company stock worth $38,789,988. Insiders own 3.98% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Cipher Capital LP purchased a new position in Starbucks during the fourth quarter valued at approximately $2,261,000. Mark Sheptoff Financial Planning LLC purchased a new position in Starbucks during the fourth quarter valued at approximately $32,000. Mackay Shields LLC grew its stake in Starbucks by 55.0% during the fourth quarter. Mackay Shields LLC now owns 625,131 shares of the coffee company’s stock valued at $40,259,000 after acquiring an additional 221,699 shares in the last quarter. Standard Life Aberdeen plc grew its stake in Starbucks by 5.4% during the third quarter. Standard Life Aberdeen plc now owns 653,570 shares of the coffee company’s stock valued at $37,153,000 after acquiring an additional 33,573 shares in the last quarter. Finally, Rainier Group Investment Advisory LLC grew its stake in Starbucks by 6.9% during the fourth quarter. Rainier Group Investment Advisory LLC now owns 11,013 shares of the coffee company’s stock valued at $709,000 after acquiring an additional 708 shares in the last quarter. Hedge funds and other institutional investors own 73.36% of the company’s stock.

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About Starbucks (NASDAQ:SBUX)

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 beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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