Starbucks Corp. (NASDAQ:SBUX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Starbucks sales fell slightly short of expectations in the last two quarters. Again, Starbucks cut its full year sales and comps outlook at the third quarter conference call. However, the third quarter headwinds were typically temporary and Starbucks expects U.S. comps to improve in the next quarter. Starbucks’s operating fundamentals remain strong – solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings as well as rapid growth in the international markets. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships, food/beverage innovation, Starbucks Reserve premium coffees and Teavana tea can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also enhance value creation. However, accelerated global employee and digital investments can keep profits under strain for some time.”
Several other brokerages have also commented on SBUX. Goldman Sachs Group Inc. raised shares of Starbucks Corp. from a “buy” rating to a “conviction-buy” rating and set a $69.00 price objective for the company in a research report on Tuesday, July 26th. Stifel Nicolaus reaffirmed a “hold” rating on shares of Starbucks Corp. in a research report on Sunday, July 24th. Deutsche Bank AG set a $64.00 price objective on shares of Starbucks Corp. and gave the company a “hold” rating in a research report on Sunday, July 24th. Nomura reaffirmed a “buy” rating and issued a $70.00 price objective on shares of Starbucks Corp. in a research report on Monday, July 25th. Finally, RBC Capital Markets reaffirmed an “outperform” rating and issued a $68.00 price objective on shares of Starbucks Corp. in a research report on Monday, July 25th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, twenty-five have given a buy rating and two have assigned a strong buy rating to the stock. Starbucks Corp. presently has a consensus rating of “Buy” and an average target price of $66.54.
Shares of Starbucks Corp. (NASDAQ:SBUX) traded down 0.529% during trading on Tuesday, reaching $53.555. 4,054,003 shares of the company’s stock traded hands. The company has a 50 day moving average price of $55.08 and a 200-day moving average price of $56.56. Starbucks Corp. has a one year low of $52.63 and a one year high of $64.00. The stock has a market cap of $78.54 billion, a P/E ratio of 30.087 and a beta of 0.83.
Starbucks Corp. (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, July 21st. The coffee company reported $0.49 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.49. The business earned $5.20 billion during the quarter, compared to analyst estimates of $5.34 billion. Starbucks Corp. had a net margin of 13.01% and a return on equity of 46.89%. On average, equities research analysts expect that Starbucks Corp. will post $1.89 EPS for the current fiscal year.
In related news, Director Myron E. Ullman III sold 12,654 shares of the company’s stock in a transaction that occurred on Tuesday, July 26th. The shares were sold at an average price of $58.70, for a total transaction of $742,789.80. Following the sale, the director now directly owns 26,654 shares in the company, valued at $1,564,589.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 3.38% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the company. Farmers National Bank purchased a new stake in Starbucks Corp. during the second quarter worth $101,000. Cascade Investment Advisors Inc. purchased a new stake in Starbucks Corp. during the second quarter worth $107,000. Valley National Advisers Inc. raised its stake in Starbucks Corp. by 0.3% in the second quarter. Valley National Advisers Inc. now owns 2,062 shares of the coffee company’s stock worth $118,000 after buying an additional 6 shares during the last quarter. Livingston Group Asset Management CO operating as Southport Capital Management purchased a new stake in Starbucks Corp. during the second quarter worth $123,000. Finally, Proficio Capital Partners LLC raised its stake in Starbucks Corp. by 5.2% in the second quarter. Proficio Capital Partners LLC now owns 2,205 shares of the coffee company’s stock worth $128,000 after buying an additional 109 shares during the last quarter. Hedge funds and other institutional investors own 68.13% of the company’s stock.
About Starbucks Corp.
Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The Company purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts.
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