Starbucks (NASDAQ:SBUX) Downgraded by JPMorgan Chase & Co. to “Neutral”

JPMorgan Chase & Co. lowered shares of Starbucks (NASDAQ:SBUX) from an overweight rating to a neutral rating in a research note issued to investors on Monday morning, The Fly reports.

A number of other brokerages also recently commented on SBUX. Citigroup assumed coverage on Starbucks in a research report on Wednesday, June 26th. They set a buy rating and a $83.65 price target for the company. Barclays increased their price target on Starbucks from $75.00 to $90.00 and gave the company an equal weight rating in a research report on Friday, July 26th. OTR Global raised Starbucks to a positive rating in a research report on Tuesday, July 16th. BMO Capital Markets increased their price target on Starbucks to $84.00 and gave the company a market perform rating in a research report on Friday, July 26th. They noted that the move was a valuation call. Finally, Piper Jaffray Companies increased their price target on Starbucks from $77.00 to $82.00 and gave the company a neutral rating in a research report on Monday, June 10th. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. Starbucks presently has an average rating of Buy and an average price target of $89.53.

SBUX stock opened at $95.38 on Monday. Starbucks has a twelve month low of $51.19 and a twelve month high of $99.72. The firm has a 50 day moving average of $88.33. The company has a market capitalization of $117.06 billion, a price-to-earnings ratio of 39.41, a PEG ratio of 2.67 and a beta of 0.55.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Thursday, July 25th. The coffee company reported $0.78 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.72 by $0.06. Starbucks had a negative return on equity of 154.96% and a net margin of 13.63%. The company had revenue of $6.82 billion for the quarter, compared to analyst estimates of $6.67 billion. During the same quarter last year, the company earned $0.62 earnings per share. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. Equities analysts predict that Starbucks will post 2.82 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, August 23rd. Shareholders of record on Thursday, August 8th will be given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 1.51%. The ex-dividend date of this dividend is Wednesday, August 7th. Starbucks’s dividend payout ratio is currently 59.50%.

In other news, insider Kevin R. Johnson sold 23,390 shares of Starbucks stock in a transaction on Monday, July 29th. The stock was sold at an average price of $98.32, for a total value of $2,299,704.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Myron E. Ullman III sold 9,973 shares of Starbucks stock in a transaction on Monday, July 1st. The shares were sold at an average price of $84.64, for a total value of $844,114.72. Following the completion of the transaction, the director now owns 28,390 shares of the company’s stock, valued at $2,402,929.60. The disclosure for this sale can be found here. Insiders sold 117,273 shares of company stock valued at $9,722,608 over the last three months. Company insiders own 3.98% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in SBUX. Envestnet Asset Management Inc. boosted its stake in Starbucks by 6.6% during the second quarter. Envestnet Asset Management Inc. now owns 1,814,637 shares of the coffee company’s stock valued at $152,121,000 after buying an additional 112,632 shares during the period. Candriam Luxembourg S.C.A. boosted its stake in Starbucks by 53.2% during the second quarter. Candriam Luxembourg S.C.A. now owns 359,295 shares of the coffee company’s stock valued at $29,987,000 after buying an additional 124,833 shares during the period. Diligent Investors LLC boosted its stake in Starbucks by 24.3% during the second quarter. Diligent Investors LLC now owns 4,485 shares of the coffee company’s stock valued at $376,000 after buying an additional 877 shares during the period. Parsons Capital Management Inc. RI bought a new stake in Starbucks during the second quarter valued at $2,000,000. Finally, Benedict Financial Advisors Inc. boosted its stake in Starbucks by 35.9% during the second quarter. Benedict Financial Advisors Inc. now owns 17,040 shares of the coffee company’s stock valued at $1,428,000 after buying an additional 4,498 shares during the period. Institutional investors own 71.84% of the company’s stock.

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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