Starbucks Corp. (SBUX) Downgraded by Zacks Investment Research to “Sell”
Starbucks Corp. (NASDAQ:SBUX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued 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.”
Other equities analysts have also issued research reports about the stock. Deutsche Bank AG set a $64.00 target price on shares of Starbucks Corp. and gave the company a “hold” rating in a report on Sunday, July 24th. Robert W. Baird restated an “outperform” rating on shares of Starbucks Corp. in a report on Tuesday, June 28th. Nomura restated a “buy” rating on shares of Starbucks Corp. in a report on Tuesday, July 12th. Jefferies Group restated an “in-line” rating and issued a $65.00 target price (down previously from $70.00) on shares of Starbucks Corp. in a report on Friday, July 22nd. Finally, RBC Capital Markets restated an “outperform” rating and issued a $68.00 target price on shares of Starbucks Corp. in a report on Friday, August 5th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, twenty-five have assigned a buy rating and two have assigned a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $66.54.
Shares of Starbucks Corp. (NASDAQ:SBUX) traded down 0.529% during mid-day trading on Tuesday, hitting $53.555. The company’s stock had a trading volume of 4,054,003 shares. Starbucks Corp. has a 1-year low of $52.63 and a 1-year high of $64.00. The stock has a market cap of $78.54 billion, a PE ratio of 30.087 and a beta of 0.83. The company has a 50-day moving average price of $55.08 and a 200-day moving average price of $56.56.
Starbucks Corp. (NASDAQ:SBUX) last released its earnings results on Thursday, July 21st. The coffee company reported $0.49 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.49. The business had revenue of $5.20 billion for 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%. Analysts predict 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 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 transaction, the director now owns 26,654 shares of the company’s stock, valued at approximately $1,564,589.80. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 3.38% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the stock. Valley National Advisers Inc. raised its position 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 valued at $118,000 after buying an additional 6 shares in the last quarter. Advisory Services Network LLC raised its position in Starbucks Corp. by 0.3% in the second quarter. Advisory Services Network LLC now owns 4,339 shares of the coffee company’s stock valued at $248,000 after buying an additional 13 shares in the last quarter. Park National Corp OH raised its position in Starbucks Corp. by 0.3% in the third quarter. Park National Corp OH now owns 5,141 shares of the coffee company’s stock valued at $278,000 after buying an additional 13 shares in the last quarter. Autus Asset Management LLC raised its position in Starbucks Corp. by 0.9% in the second quarter. Autus Asset Management LLC now owns 4,699 shares of the coffee company’s stock valued at $269,000 after buying an additional 40 shares in the last quarter. Finally, Roberts Glore & Co. Inc. IL raised its position in Starbucks Corp. by 0.9% in the second quarter. Roberts Glore & Co. Inc. IL now owns 5,325 shares of the coffee company’s stock valued at $304,000 after buying an additional 50 shares in the last quarter. 68.13% of the stock is currently owned by institutional investors.
Starbucks Corp. Company Profile
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.
Receive News & Stock Ratings for Starbucks Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Starbucks Corp. and related stocks with our FREE daily email newsletter.