Starbucks (NASDAQ:SBUX) Shares Down 0.7% After Analyst Downgrade

Starbucks Co. (NASDAQ:SBUX) traded down 0.7% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $100.00 to $92.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Starbucks traded as low as $73.35 and last traded at $73.90. 8,871,633 shares traded hands during mid-day trading, a decline of 3% from the average session volume of 9,120,123 shares. The stock had previously closed at $74.44.

A number of other research analysts have also recently commented on the company. Wedbush lowered their price target on Starbucks from $95.00 to $92.00 and set a “neutral” rating on the stock in a report on Friday, April 26th. Evercore ISI lowered their target price on shares of Starbucks from $120.00 to $92.00 and set an “outperform” rating on the stock in a report on Wednesday. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $102.00 target price on shares of Starbucks in a research note on Wednesday, January 31st. UBS Group decreased their price target on shares of Starbucks from $95.00 to $85.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Stephens restated an “equal weight” rating and set a $110.00 price objective on shares of Starbucks in a research report on Wednesday, January 31st. Sixteen equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, Starbucks presently has a consensus rating of “Hold” and a consensus target price of $100.39.

Insiders Place Their Bets

In related news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction on Monday, April 15th. The stock was sold at an average price of $85.39, for a total transaction of $277,517.50. Following the completion of the transaction, the chief executive officer now owns 81,199 shares in the company, valued at approximately $6,933,582.61. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders sold a total of 7,250 shares of company stock valued at $651,738 over the last 90 days. Insiders own 1.98% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Several large investors have recently added to or reduced their stakes in SBUX. Scarborough Advisors LLC bought a new position in shares of Starbucks during the 4th quarter worth $26,000. Vima LLC bought a new position in Starbucks during the 4th quarter worth about $26,000. DSM Capital Partners LLC purchased a new position in Starbucks during the 4th quarter valued at about $27,000. Fairman Group LLC bought a new stake in shares of Starbucks in the 4th quarter valued at about $30,000. Finally, Riggs Asset Managment Co. Inc. lifted its position in shares of Starbucks by 1,578.9% in the 3rd quarter. Riggs Asset Managment Co. Inc. now owns 319 shares of the coffee company’s stock worth $29,000 after purchasing an additional 300 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Down 0.2 %

The stock has a market capitalization of $84.08 billion, a P/E ratio of 20.36, a P/E/G ratio of 1.49 and a beta of 0.97. The stock’s 50 day moving average price is $89.76 and its 200-day moving average price is $94.11.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). Starbucks had a negative return on equity of 50.10% and a net margin of 11.38%. The company had revenue of $8.56 billion for the quarter, compared to analysts’ expectations of $9.12 billion. During the same quarter in the prior year, the company earned $0.74 EPS. The firm’s quarterly revenue was down 1.8% on a year-over-year basis. Analysts anticipate that Starbucks Co. will post 3.99 earnings per share for the current year.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be issued a $0.57 dividend. The ex-dividend date is Thursday, May 16th. This represents a $2.28 dividend on an annualized basis and a yield of 3.07%. Starbucks’s dividend payout ratio is presently 62.81%.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.