Starbucks (NASDAQ:SBUX) Trading 1.6% Higher – Should You Buy?

by · The Cerbat Gem

Starbucks Co. (NASDAQ:SBUX – Get Free Report)’s share price was up 1.6% during trading on Friday . The stock traded as high as $95.42 and last traded at $95.39. Approximately 669,620 shares traded hands during mid-day trading, a decline of 94% from the average daily volume of 11,522,461 shares. The stock had previously closed at $93.88.

Wall Street Analysts Forecast Growth

SBUX has been the subject of a number of analyst reports. Bank of America increased their price target on Starbucks from $112.00 to $118.00 and gave the company a “buy” rating in a research report on Wednesday, September 18th. Wedbush reissued a “neutral” rating and issued a $80.00 price objective on shares of Starbucks in a research report on Tuesday, August 13th. Jefferies Financial Group cut Starbucks from a “hold” rating to an “underperform” rating and lowered their target price for the stock from $80.00 to $76.00 in a research note on Tuesday, September 24th. Oppenheimer restated a “market perform” rating on shares of Starbucks in a research note on Monday, August 26th. Finally, The Goldman Sachs Group assumed coverage on Starbucks in a research note on Thursday, June 13th. They issued a “buy” rating and a $100.00 target price on the stock. Two analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $101.16.

Check Out Our Latest Report on Starbucks

Starbucks Stock Performance

The firm has a 50-day moving average of $92.47 and a 200-day moving average of $84.55. The firm has a market capitalization of $108.47 billion, a P/E ratio of 26.72, a price-to-earnings-growth ratio of 2.11 and a beta of 0.97.

Starbucks (NASDAQ:SBUX – Get Free Report) last issued its earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.93. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The firm had revenue of $9.11 billion for the quarter, compared to analysts’ expectations of $9.25 billion. During the same quarter last year, the business earned $1.00 earnings per share. The business’s revenue was down .6% on a year-over-year basis. Equities analysts anticipate that Starbucks Co. will post 3.55 EPS for the current fiscal year.

Insider Activity

In related news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $94.03, for a total transaction of $305,597.50. Following the transaction, the chief executive officer now owns 75,054 shares in the company, valued at $7,057,327.62. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $94.03, for a total value of $305,597.50. Following the completion of the sale, the chief executive officer now directly owns 75,054 shares of the company’s stock, valued at approximately $7,057,327.62. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Rachel Ruggeri sold 3,290 shares of the stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total transaction of $299,916.40. Following the completion of the transaction, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at approximately $5,697,682.32. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.98% of the company’s stock.

Institutional Investors Weigh In On Starbucks

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Thurston Springer Miller Herd & Titak Inc. grew its stake in shares of Starbucks by 8.4% in the 3rd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 18,286 shares of the coffee company’s stock worth $1,783,000 after buying an additional 1,415 shares during the last quarter. Orca Investment Management LLC grew its stake in shares of Starbucks by 6.5% in the third quarter. Orca Investment Management LLC now owns 7,344 shares of the coffee company’s stock worth $716,000 after acquiring an additional 451 shares during the last quarter. Martin Capital Advisors LLP increased its holdings in shares of Starbucks by 0.7% during the third quarter. Martin Capital Advisors LLP now owns 32,319 shares of the coffee company’s stock valued at $3,151,000 after acquiring an additional 231 shares in the last quarter. Viking Fund Management LLC boosted its stake in Starbucks by 20.7% in the 3rd quarter. Viking Fund Management LLC now owns 105,000 shares of the coffee company’s stock worth $10,236,000 after purchasing an additional 18,000 shares in the last quarter. Finally, Stonekeep Investments LLC purchased a new stake in Starbucks during the 3rd quarter valued at about $258,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Company Profile

(Get Free Report)

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.

Further Reading