Starbucks Corporation (SBUX) Upgraded to “Hold” by Zacks Investment Research

Starbucks Corporation (NASDAQ:SBUX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Thursday, July 20th.

According to Zacks, “Starbucks’s operating fundamentals such as solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings remain strong. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also enhance value creation. These initiatives might benefit the company in the long run. However, the consequential increment in spending is likely to create pressure on its bottom line in the near term. Also, economic, geopolitical and consumer headwinds continue to impact Starbucks' results. Meanwhile, the company’s shares have underperformed the Zacks categorized Retail-Food & Restaurants industry so far this year.”

Other research analysts also recently issued research reports about the stock. Stifel Nicolaus set a $66.00 price target on shares of Starbucks Corporation and gave the company a “buy” rating in a report on Friday, April 28th. UBS AG set a $70.00 price target on shares of Starbucks Corporation and gave the company a “buy” rating in a report on Tuesday, April 25th. Telsey Advisory Group assumed coverage on shares of Starbucks Corporation in a report on Monday, March 27th. They issued an “outperform” rating and a $66.00 price target for the company. Sanford C. Bernstein reaffirmed a “buy” rating and issued a $67.00 price target on shares of Starbucks Corporation in a report on Monday, June 12th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $66.00 price target on shares of Starbucks Corporation in a report on Tuesday, June 13th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, twenty-two have issued a buy rating and three have given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus price target of $64.93.

Starbucks Corporation (NASDAQ:SBUX) traded up 1.11% during midday trading on Thursday, reaching $54.58. The company’s stock had a trading volume of 12,581,903 shares. The firm has a market cap of $79.04 billion, a P/E ratio of 27.55 and a beta of 0.82. The firm has a 50 day moving average price of $58.66 and a 200 day moving average price of $58.51. Starbucks Corporation has a one year low of $50.84 and a one year high of $64.87.

Starbucks Corporation (NASDAQ:SBUX) last announced its quarterly earnings results on Thursday, July 27th. The coffee company reported $0.55 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.55. Starbucks Corporation had a net margin of 12.93% and a return on equity of 53.01%. The firm had revenue of $5.66 billion during the quarter, compared to the consensus estimate of $5.76 billion. During the same quarter last year, the firm earned $0.49 EPS. The firm’s revenue for the quarter was up 8.1% compared to the same quarter last year. Equities research analysts forecast that Starbucks Corporation will post $2.10 EPS for the current fiscal year.

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In other news, insider Clifford Burrows sold 114,826 shares of Starbucks Corporation stock in a transaction on Thursday, May 18th. The shares were sold at an average price of $59.46, for a total transaction of $6,827,553.96. Following the completion of the sale, the insider now directly owns 363,343 shares in the company, valued at $21,604,374.78. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Myron E. Ullman III sold 20,000 shares of Starbucks Corporation stock in a transaction on Wednesday, May 3rd. The stock was sold at an average price of $60.43, for a total transaction of $1,208,600.00. Following the sale, the director now owns 34,000 shares of the company’s stock, valued at $2,054,620. The disclosure for this sale can be found here. Insiders have sold 144,826 shares of company stock valued at $8,642,454 over the last quarter. Insiders own 3.40% of the company’s stock.

Large investors have recently bought and sold shares of the company. Regent Investment Management LLC increased its stake in Starbucks Corporation by 6.8% in the second quarter. Regent Investment Management LLC now owns 4,683 shares of the coffee company’s stock valued at $273,000 after buying an additional 300 shares during the last quarter. Cape Cod Five Cents Savings Bank increased its stake in Starbucks Corporation by 16.9% in the second quarter. Cape Cod Five Cents Savings Bank now owns 31,902 shares of the coffee company’s stock valued at $1,861,000 after buying an additional 4,616 shares during the last quarter. Banco Santander S.A. bought a new stake in Starbucks Corporation during the fourth quarter valued at approximately $3,069,000. Israel Discount Bank of New York GFN acquired a new position in shares of Starbucks Corporation during the fourth quarter valued at about $694,000. Finally, GLG LLC boosted its position in shares of Starbucks Corporation by 6.8% in the fourth quarter. GLG LLC now owns 82,121 shares of the coffee company’s stock valued at $4,559,000 after buying an additional 5,220 shares during the period. Institutional investors and hedge funds own 69.59% of the company’s stock.

Starbucks Corporation Company Profile

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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