Investors Buy Starbucks (SBUX) on Weakness

Investors bought shares of Starbucks Co. (NASDAQ:SBUX) on weakness during trading on Friday. $128.11 million flowed into the stock on the tick-up and $55.14 million flowed out of the stock on the tick-down, for a money net flow of $72.97 million into the stock. Of all companies tracked, Starbucks had the 8th highest net in-flow for the day. Starbucks traded down ($0.10) for the day and closed at $56.48

Several equities analysts recently issued reports on the stock. Credit Suisse Group dropped their target price on shares of Starbucks from $56.00 to $54.00 and set a “neutral” rating on the stock in a report on Friday, November 3rd. Goldman Sachs Group lowered shares of Starbucks from a “conviction-buy” rating to a “buy” rating and dropped their price objective for the company from $73.00 to $68.00 in a report on Friday, January 26th. BTIG Research reiterated a “buy” rating and set a $64.00 price objective on shares of Starbucks in a report on Friday, January 26th. OTR Global upgraded shares of Starbucks to a “positive” rating in a report on Thursday, October 26th. Finally, BMO Capital Markets dropped their price objective on shares of Starbucks from $56.00 to $52.00 and set a “market perform” rating on the stock in a report on Friday, November 3rd. One research analyst has rated the stock with a sell rating, ten have given a hold rating and twenty-two have assigned a buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $64.63.

The company has a quick ratio of 0.81, a current ratio of 1.01 and a debt-to-equity ratio of 0.79. The firm has a market capitalization of $79,390.00, a PE ratio of 18.95, a PEG ratio of 1.57 and a beta of 0.70.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Thursday, January 25th. The coffee company reported $0.58 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.57 by $0.01. Starbucks had a net margin of 19.28% and a return on equity of 56.35%. The business had revenue of $6.07 billion during the quarter, compared to the consensus estimate of $6.19 billion. During the same period in the prior year, the firm posted $0.52 EPS. The firm’s quarterly revenue was up 5.9% compared to the same quarter last year. sell-side analysts predict that Starbucks Co. will post 2.49 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 23rd. Shareholders of record on Thursday, February 8th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 2.12%. The ex-dividend date is Wednesday, February 7th. Starbucks’s payout ratio is 40.27%.

In other Starbucks news, insider Howard D. Schultz sold 25,000 shares of the company’s stock in a transaction dated Tuesday, November 21st. The shares were sold at an average price of $57.28, for a total value of $1,432,000.00. Following the completion of the sale, the insider now directly owns 29,798,282 shares of the company’s stock, valued at approximately $1,706,845,592.96. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Clifford Burrows sold 162,826 shares of the company’s stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $57.02, for a total transaction of $9,284,338.52. Following the completion of the sale, the insider now directly owns 331,829 shares of the company’s stock, valued at $18,920,889.58. The disclosure for this sale can be found here. Insiders sold a total of 329,492 shares of company stock valued at $18,859,801 over the last ninety days. 3.40% of the stock is currently owned by insiders.

A number of hedge funds have recently modified their holdings of SBUX. ZWJ Investment Counsel Inc. grew its position in shares of Starbucks by 6.1% during the 2nd quarter. ZWJ Investment Counsel Inc. now owns 24,555 shares of the coffee company’s stock valued at $1,432,000 after acquiring an additional 1,409 shares during the period. Northeast Investment Management grew its position in shares of Starbucks by 7.7% during the 2nd quarter. Northeast Investment Management now owns 185,132 shares of the coffee company’s stock valued at $10,795,000 after acquiring an additional 13,303 shares during the period. Halbert Hargrove Russell LLC grew its position in shares of Starbucks by 137.0% during the 2nd quarter. Halbert Hargrove Russell LLC now owns 9,640 shares of the coffee company’s stock valued at $562,000 after acquiring an additional 5,573 shares during the period. Private Vista LLC grew its position in shares of Starbucks by 3,334.9% during the 2nd quarter. Private Vista LLC now owns 219,699 shares of the coffee company’s stock valued at $160,000 after acquiring an additional 213,303 shares during the period. Finally, Wayne Hummer Investments L.L.C. grew its position in shares of Starbucks by 8.8% during the 2nd quarter. Wayne Hummer Investments L.L.C. now owns 9,280 shares of the coffee company’s stock valued at $541,000 after acquiring an additional 753 shares during the period. 71.92% of the stock is owned by institutional investors and hedge funds.

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Starbucks 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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