Starbucks’ (NASDAQ:SBUX) Hold Rating Reiterated at Wedbush

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Wedbush reaffirmed their hold rating on shares of Starbucks (NASDAQ:SBUX) in a research note issued to investors on Tuesday, September 18th. The firm currently has a $53.00 target price on the coffee company’s stock.

Other analysts also recently issued research reports about the stock. BMO Capital Markets cut their price target on shares of Starbucks from $58.00 to $56.00 and set a market perform rating for the company in a report on Wednesday, June 20th. Jefferies Financial Group cut their price target on shares of Starbucks from $69.00 to $61.00 and set a buy rating for the company in a report on Tuesday, June 26th. They noted that the move was a valuation call. Telsey Advisory Group cut their price target on shares of Starbucks from $60.00 to $58.00 and set a market perform rating for the company in a report on Tuesday, July 17th. Sanford C. Bernstein cut their price target on shares of Starbucks from $64.00 to $58.00 and set a market perform rating for the company in a report on Tuesday, June 26th. Finally, Zacks Investment Research raised shares of Starbucks from a strong sell rating to a hold rating in a report on Tuesday, August 21st. One equities research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and seventeen have given a buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $60.35.

Shares of NASDAQ:SBUX traded up $1.59 on Tuesday, reaching $56.45. 13,886,462 shares of the company’s stock were exchanged, compared to its average volume of 10,533,108. Starbucks has a twelve month low of $47.37 and a twelve month high of $61.94. The firm has a market cap of $76.68 billion, a PE ratio of 27.40, a PEG ratio of 1.69 and a beta of 0.60. The company has a quick ratio of 0.76, a current ratio of 1.01 and a debt-to-equity ratio of 1.54.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Thursday, July 26th. The coffee company reported $0.62 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.02. Starbucks had a net margin of 18.87% and a return on equity of 67.11%. The firm had revenue of $6.31 billion for the quarter, compared to analyst estimates of $6.25 billion. During the same quarter in the prior year, the business posted $0.55 EPS. The business’s revenue was up 11.5% compared to the same quarter last year. On average, research analysts expect that Starbucks will post 2.4 EPS for the current year.

In other news, insider Rosalind G. Brewer acquired 5,000 shares of the firm’s stock in a transaction dated Monday, August 20th. The stock was bought at an average cost of $54.04 per share, for a total transaction of $270,200.00. Following the completion of the transaction, the insider now directly owns 7,302 shares in the company, valued at approximately $394,600.08. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Myron E. Ullman III sold 15,000 shares of the stock in a transaction on Friday, August 3rd. The stock was sold at an average price of $52.13, for a total transaction of $781,950.00. Following the sale, the director now owns 29,000 shares of the company’s stock, valued at $1,511,770. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 295,832 shares of company stock valued at $15,834,037. Corporate insiders own 3.48% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of SBUX. Archford Capital Strategies LLC grew its holdings in Starbucks by 669.7% in the second quarter. Archford Capital Strategies LLC now owns 2,186 shares of the coffee company’s stock worth $107,000 after purchasing an additional 1,902 shares during the period. Fort L.P. acquired a new stake in Starbucks in the second quarter worth $112,000. Point72 Hong Kong Ltd acquired a new stake in Starbucks in the second quarter worth $115,000. Transamerica Financial Advisors Inc. acquired a new stake in Starbucks in the first quarter worth $118,000. Finally, RPg Family Wealth Advisory LLC grew its holdings in Starbucks by 155.6% in the second quarter. RPg Family Wealth Advisory LLC now owns 2,748 shares of the coffee company’s stock worth $134,000 after purchasing an additional 1,673 shares during the period. Institutional investors own 71.90% 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 coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

See Also: Intrinsic Value

Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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