Starbucks (NASDAQ:SBUX) Earns Buy Rating from Analysts at Goldman Sachs Group

Goldman Sachs Group started coverage on shares of Starbucks (NASDAQ:SBUX) in a research report sent to investors on Monday, BenzingaRatingsTable reports. The firm issued a buy rating and a $110.00 target price on the coffee company’s stock.

A number of other analysts have also recently weighed in on SBUX. KeyCorp raised their target price on shares of Starbucks from $84.00 to $105.00 and gave the stock an overweight rating in a report on Friday, July 26th. Morgan Stanley raised their price objective on shares of Starbucks from $81.00 to $88.00 and gave the stock an equal weight rating in a research note on Friday, July 26th. Bank of America set a $85.00 price objective on shares of Starbucks and gave the stock a buy rating in a research note on Friday, April 26th. Citigroup assumed coverage on shares of Starbucks in a research note on Wednesday, June 26th. They issued a buy rating and a $83.65 price objective for the company. Finally, Telsey Advisory Group reaffirmed a market perform rating and issued a $90.00 price objective (up previously from $80.00) on shares of Starbucks in a research note on Friday, July 26th. One research analyst has rated the stock with a sell rating, fourteen have given a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. Starbucks has a consensus rating of Buy and a consensus target price of $89.53.

NASDAQ:SBUX traded up $0.47 during trading hours on Monday, reaching $95.85. 1,923,873 shares of the company’s stock were exchanged, compared to its average volume of 7,098,232. The stock has a market cap of $115.52 billion, a P/E ratio of 39.61, a P/E/G ratio of 2.67 and a beta of 0.55. Starbucks has a 12 month low of $51.19 and a 12 month high of $99.72. The stock has a 50-day moving average price of $88.33.

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

The business 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. The ex-dividend date is Wednesday, August 7th. This represents a $1.44 dividend on an annualized basis and a yield of 1.50%. Starbucks’s payout ratio is 59.50%.

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

Hedge funds have recently added to or reduced their stakes in the business. Abbrea Capital LLC grew its stake in Starbucks by 1.9% in the 2nd quarter. Abbrea Capital LLC now owns 5,525 shares of the coffee company’s stock valued at $463,000 after buying an additional 105 shares during the last quarter. Duncker Streett & Co. Inc. grew its stake in Starbucks by 0.4% in the 2nd quarter. Duncker Streett & Co. Inc. now owns 30,160 shares of the coffee company’s stock valued at $2,528,000 after buying an additional 120 shares during the last quarter. D.B. Root & Company LLC grew its stake in Starbucks by 0.8% in the 2nd quarter. D.B. Root & Company LLC now owns 14,929 shares of the coffee company’s stock valued at $1,251,000 after buying an additional 122 shares during the last quarter. Grove Bank & Trust grew its stake in Starbucks by 3.0% in the 2nd quarter. Grove Bank & Trust now owns 4,373 shares of the coffee company’s stock valued at $367,000 after buying an additional 128 shares during the last quarter. Finally, Community Bank N.A. grew its stake in Starbucks by 2.1% in the 1st quarter. Community Bank N.A. now owns 6,783 shares of the coffee company’s stock valued at $504,000 after buying an additional 140 shares during the last quarter. 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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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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