Starbucks’ (SBUX) “Sell” Rating Reaffirmed at Redburn Atlantic

Redburn Atlantic reiterated their sell rating on shares of Starbucks (NASDAQ:SBUX) in a research note released on Wednesday morning, MarketBeat Ratings reports. Redburn Atlantic currently has a $77.00 target price on the coffee company’s stock, down from their previous target price of $84.00.

Other equities analysts also recently issued research reports about the stock. Morgan Stanley lifted their target price on shares of Starbucks from $98.00 to $115.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 16th. BMO Capital Markets raised their price target on shares of Starbucks from $100.00 to $110.00 and gave the stock an “outperform” rating in a report on Monday, September 9th. Barclays reduced their price target on shares of Starbucks from $110.00 to $108.00 and set an “overweight” rating for the company in a report on Thursday, October 31st. Wedbush reduced their price target on shares of Starbucks from $98.00 to $95.00 and set a “neutral” rating for the company in a report on Thursday, October 31st. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Starbucks from $90.00 to $105.00 and gave the company an “overweight” rating in a report on Monday, September 30th. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $102.81.

Starbucks Stock Performance

SBUX stock opened at $98.42 on Wednesday. The company has a fifty day moving average price of $96.75 and a 200-day moving average price of $86.19. The company has a market capitalization of $111.53 billion, a P/E ratio of 29.73, a PEG ratio of 2.89 and a beta of 0.97. Starbucks has a 52-week low of $71.55 and a 52-week high of $107.66.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The business had revenue of $9.07 billion during the quarter, compared to the consensus estimate of $9.60 billion. During the same quarter last year, the firm earned $1.06 earnings per share. Starbucks’s quarterly revenue was down 3.2% on a year-over-year basis. As a group, sell-side analysts forecast that Starbucks will post 3.15 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Shareholders of record on Friday, November 15th will be paid a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 annualized dividend and a yield of 2.48%. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s payout ratio is 73.72%.

Insider Activity

In other Starbucks news, Director Jorgen Vig Knudstorp purchased 380 shares of the stock in a transaction on Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, with a total value of $34,770.00. Following the completion of the purchase, the director now directly owns 36,242 shares of the company’s stock, valued at approximately $3,316,143. This trade represents a 1.06 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Institutional investors have recently added to or reduced their stakes in the business. Quent Capital LLC boosted its holdings in Starbucks by 9.6% during the 1st quarter. Quent Capital LLC now owns 4,389 shares of the coffee company’s stock valued at $401,000 after acquiring an additional 385 shares during the period. HBK Sorce Advisory LLC boosted its holdings in Starbucks by 11.3% during the 1st quarter. HBK Sorce Advisory LLC now owns 9,507 shares of the coffee company’s stock valued at $869,000 after acquiring an additional 967 shares during the period. Leo Wealth LLC boosted its holdings in Starbucks by 11.2% during the 1st quarter. Leo Wealth LLC now owns 2,815 shares of the coffee company’s stock valued at $257,000 after acquiring an additional 283 shares during the period. Brighton Jones LLC boosted its holdings in Starbucks by 8.7% during the 1st quarter. Brighton Jones LLC now owns 148,302 shares of the coffee company’s stock valued at $13,553,000 after acquiring an additional 11,903 shares during the period. Finally, Cumberland Partners Ltd boosted its holdings in Starbucks by 389.5% during the 1st quarter. Cumberland Partners Ltd now owns 68,703 shares of the coffee company’s stock valued at $6,279,000 after acquiring an additional 54,668 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

About Starbucks

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.