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.”
A number of other brokerages have also recently weighed in on SBUX. BTIG Research reduced their price target on shares of Starbucks Corp. from $75.00 to $64.00 and set a buy rating for the company in a research report on Friday, July 22nd. RBC Capital Markets restated an outperform rating and issued a $68.00 price objective on shares of Starbucks Corp. in a research note on Monday, July 25th. Piper Jaffray Cos. restated an outperform rating and issued a $72.00 price objective on shares of Starbucks Corp. in a research note on Friday, July 22nd. Macquarie upgraded shares of Starbucks Corp. from a buy rating to a strong-buy rating in a research note on Wednesday, September 14th. Finally, Vetr lowered shares of Starbucks Corp. from a strong-buy rating to a buy rating and set a $62.21 price objective on the stock. in a research note on Wednesday, June 29th. One research analyst has rated the stock with a sell rating, five have given a hold rating, twenty-five have issued a buy rating and two have given a strong buy rating to the company’s stock. The company has an average rating of Buy and an average price target of $66.50.
Starbucks Corp. (NASDAQ:SBUX) traded up 0.0695% during midday trading on Wednesday, hitting $54.0175. 763,787 shares of the stock traded hands. The company has a market cap of $79.22 billion, a P/E ratio of 30.3469 and a beta of 0.80. Starbucks Corp. has a one year low of $52.63 and a one year high of $64.00. The company’s 50 day moving average is $55.42 and its 200-day moving average is $56.82.
Starbucks Corp. (NASDAQ:SBUX) last announced its quarterly earnings results on Thursday, July 21st. The coffee company reported $0.49 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.49. Starbucks Corp. had a net margin of 13.01% and a return on equity of 46.89%. The firm earned $5.20 billion during the quarter, compared to analysts’ expectations of $5.34 billion. On average, equities research analysts forecast 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 firm’s stock in a transaction 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 completion of the sale, the director now directly owns 26,654 shares of the company’s stock, valued at approximately $1,564,589.80. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 3.38% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Wunderlich Securities Inc. increased its position in Starbucks Corp. by 4.1% in the first quarter. Wunderlich Securities Inc. now owns 11,203 shares of the coffee company’s stock worth $668,000 after buying an additional 444 shares during the period. Franklin Street Advisors Inc. NC bought a new position in Starbucks Corp. during the first quarter worth approximately $3,754,000. Lincoln Capital LLC increased its position in Starbucks Corp. by 3.1% in the first quarter. Lincoln Capital LLC now owns 143,855 shares of the coffee company’s stock worth $8,588,000 after buying an additional 4,336 shares during the period. Capital Asset Advisory Services LLC bought a new position in Starbucks Corp. during the first quarter worth approximately $724,000. Finally, Banced Corp increased its position in Starbucks Corp. by 5.3% in the first quarter. Banced Corp now owns 13,144 shares of the coffee company’s stock worth $785,000 after buying an additional 667 shares during the period. 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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