Starbucks (NASDAQ:SBUX) Reaches New 52-Week Low on Analyst Downgrade

Shares of Starbucks Co. (NASDAQ:SBUX) hit a new 52-week low during mid-day trading on Tuesday after Piper Sandler lowered their price target on the stock from $88.00 to $85.00. Piper Sandler currently has a neutral rating on the stock. Starbucks traded as low as $72.13 and last traded at $72.58, with a volume of 2279499 shares traded. The stock had previously closed at $72.90.

A number of other research analysts have also recently commented on SBUX. Robert W. Baird reduced their target price on Starbucks from $106.00 to $100.00 and set a “neutral” rating on the stock in a research note on Monday, March 18th. Stephens reissued an “equal weight” rating and issued a $110.00 target price on shares of Starbucks in a research note on Wednesday, January 31st. Deutsche Bank Aktiengesellschaft cut Starbucks from a “buy” rating to a “hold” rating and reduced their target price for the company from $108.00 to $89.00 in a research note on Wednesday, May 1st. Morgan Stanley reduced their target price on Starbucks from $120.00 to $115.00 and set an “overweight” rating on the stock in a research note on Friday, April 12th. Finally, HSBC reduced their target price on Starbucks from $107.00 to $84.00 and set a “hold” rating on the stock in a research note on Friday. Seventeen investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Starbucks currently has a consensus rating of “Hold” and a consensus price target of $96.43.

Insider Buying and Selling

In related news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the sale, the chief executive officer now directly owns 81,199 shares of the company’s stock, valued at $6,933,582.61. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold 7,250 shares of company stock valued at $651,738 over the last ninety days. 1.98% of the stock is owned by insiders.

Institutional Trading of Starbucks

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Forsta AP Fonden lifted its holdings in Starbucks by 9.3% in the first quarter. Forsta AP Fonden now owns 359,000 shares of the coffee company’s stock worth $32,809,000 after buying an additional 30,500 shares during the period. Zevenbergen Capital Investments LLC lifted its holdings in shares of Starbucks by 3.5% during the first quarter. Zevenbergen Capital Investments LLC now owns 19,157 shares of the coffee company’s stock valued at $1,751,000 after purchasing an additional 650 shares during the last quarter. Nvwm LLC lifted its holdings in shares of Starbucks by 9.1% during the first quarter. Nvwm LLC now owns 25,395 shares of the coffee company’s stock valued at $2,321,000 after purchasing an additional 2,109 shares during the last quarter. Sustainable Insight Capital Management LLC lifted its holdings in shares of Starbucks by 22.0% during the first quarter. Sustainable Insight Capital Management LLC now owns 27,700 shares of the coffee company’s stock valued at $2,532,000 after purchasing an additional 5,000 shares during the last quarter. Finally, PFG Advisors lifted its holdings in shares of Starbucks by 43.0% during the first quarter. PFG Advisors now owns 3,212 shares of the coffee company’s stock valued at $294,000 after purchasing an additional 966 shares during the last quarter. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Stock Down 0.8 %

The company’s fifty day moving average price is $88.46 and its 200-day moving average price is $93.69. The stock has a market capitalization of $81.95 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 1.58 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, April 30th. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.79 by ($0.11). The business had revenue of $8.56 billion for the quarter, compared to analysts’ expectations of $9.12 billion. Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. Starbucks’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.74 earnings per share. Equities research analysts anticipate that Starbucks Co. will post 3.63 earnings per share for the current year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 17th will be given a $0.57 dividend. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.28 annualized dividend and a yield of 3.15%. Starbucks’s dividend payout ratio (DPR) is presently 62.81%.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.