BidaskClub Lowers Starbucks (NASDAQ:SBUX) to Buy

Starbucks (NASDAQ:SBUX) was downgraded by research analysts at BidaskClub from a “strong-buy” rating to a “buy” rating in a research note issued on Thursday, April 18th, BidAskClub reports.

SBUX has been the topic of a number of other reports. Oppenheimer reiterated an “outperform” rating and issued a $72.00 price objective (up from $70.00) on shares of Starbucks in a report on Friday, January 25th. Mizuho set a $75.00 price objective on Starbucks and gave the company a “buy” rating in a report on Thursday, April 11th. CIBC upped their price objective on Starbucks from $70.00 to $72.00 and gave the company an “outperform” rating in a report on Friday, January 25th. Zacks Investment Research upgraded Starbucks from a “hold” rating to a “buy” rating and set a $73.00 price objective on the stock in a report on Monday, January 28th. Finally, Goldman Sachs Group cut Starbucks from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $75.00 to $68.00 in a report on Friday, January 11th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $73.38.

Shares of Starbucks stock traded up $0.52 on Thursday, hitting $78.42. 6,447,561 shares of the company were exchanged, compared to its average volume of 6,995,264. The stock has a market cap of $94.35 billion, a P/E ratio of 32.40, a P/E/G ratio of 2.18 and a beta of 0.51. Starbucks has a 1-year low of $47.37 and a 1-year high of $78.80. The company has a debt-to-equity ratio of 7.73, a current ratio of 0.94 and a quick ratio of 0.67.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Thursday, April 25th. The coffee company reported $0.60 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.56 by $0.04. Starbucks had a negative return on equity of 494.61% and a net margin of 11.87%. The business had revenue of $6.31 billion for the quarter, compared to analysts’ expectations of $6.33 billion. During the same period in the previous year, the firm posted $0.53 EPS. The business’s revenue for the quarter was up 4.5% compared to the same quarter last year. As a group, research analysts expect that Starbucks will post 2.78 EPS for the current fiscal year.

In other news, EVP Vivek C. Varma sold 70,364 shares of the company’s stock in a transaction on Wednesday, February 13th. The stock was sold at an average price of $70.05, for a total transaction of $4,928,998.20. Following the sale, the executive vice president now owns 138,004 shares of the company’s stock, valued at $9,667,180.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.98% of the stock is currently owned by corporate insiders.

Several institutional investors have recently bought and sold shares of SBUX. Oregon Public Employees Retirement Fund increased its position in shares of Starbucks by 5,590.0% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 23,679,558 shares of the coffee company’s stock worth $368,000 after acquiring an additional 23,263,399 shares during the period. Norges Bank purchased a new stake in shares of Starbucks during the fourth quarter worth $807,368,000. Two Sigma Advisers LP purchased a new stake in shares of Starbucks during the fourth quarter worth $352,796,000. AJO LP purchased a new stake in shares of Starbucks during the first quarter worth $181,534,000. Finally, Morgan Stanley increased its holdings in Starbucks by 4.8% in the third quarter. Morgan Stanley now owns 49,371,647 shares of the coffee company’s stock valued at $2,806,283,000 after buying an additional 2,254,701 shares during the last quarter. 73.18% of the stock is currently owned by institutional investors and hedge funds.

About Starbucks

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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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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