BidaskClub Upgrades Starbucks (NASDAQ:SBUX) to “Buy”

Starbucks (NASDAQ:SBUX) was upgraded by research analysts at BidaskClub from a “hold” rating to a “buy” rating in a report released on Tuesday, BidAskClub reports.

Other analysts have also issued reports about the stock. UBS Group upped their price target on shares of Starbucks from $77.00 to $81.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Stephens raised their price target on shares of Starbucks from $72.00 to $78.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 29th. Wedbush raised their price target on shares of Starbucks from $75.00 to $81.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. They noted that the move was a valuation call. Morgan Stanley increased their price objective on shares of Starbucks from $76.00 to $79.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus upgraded shares of Starbucks from a “hold” rating to a “buy” rating and set a $90.00 target price on the stock in a research report on Monday, August 24th. Sixteen research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Starbucks has an average rating of “Hold” and a consensus price target of $84.50.

Shares of NASDAQ SBUX opened at $88.38 on Tuesday. Starbucks has a 1-year low of $50.02 and a 1-year high of $94.13. The company has a market cap of $103.32 billion, a PE ratio of 79.62, a P/E/G ratio of 6.38 and a beta of 0.81. The company has a 50-day moving average of $80.83 and a two-hundred day moving average of $75.48.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Tuesday, July 28th. The coffee company reported ($0.46) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.61) by $0.15. Starbucks had a net margin of 5.56% and a negative return on equity of 22.26%. The firm had revenue of $4.22 billion during the quarter, compared to the consensus estimate of $4.14 billion. During the same quarter in the prior year, the firm earned $0.78 earnings per share. The business’s quarterly revenue was down 38.1% on a year-over-year basis. As a group, research analysts expect that Starbucks will post 0.97 earnings per share for the current year.

In related news, Director Myron E. Ullman III sold 4,252 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $74.09, for a total value of $315,030.68. Following the sale, the director now directly owns 22,752 shares in the company, valued at approximately $1,685,695.68. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Clara Shih sold 37,498 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $79.13, for a total value of $2,967,216.74. The disclosure for this sale can be found here. Insiders sold a total of 46,002 shares of company stock worth $3,642,689 over the last three months. 0.41% of the stock is owned by insiders.

A number of institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in Starbucks by 0.5% in the 2nd quarter. Vanguard Group Inc. now owns 91,002,442 shares of the coffee company’s stock valued at $6,696,870,000 after acquiring an additional 493,961 shares during the period. FMR LLC raised its stake in Starbucks by 11.2% in the 2nd quarter. FMR LLC now owns 21,754,140 shares of the coffee company’s stock valued at $1,600,888,000 after acquiring an additional 2,199,811 shares during the period. Morgan Stanley increased its position in shares of Starbucks by 15.1% during the first quarter. Morgan Stanley now owns 16,926,014 shares of the coffee company’s stock valued at $1,112,717,000 after buying an additional 2,219,969 shares during the period. Wells Fargo & Company MN increased its position in shares of Starbucks by 2.2% during the first quarter. Wells Fargo & Company MN now owns 11,403,058 shares of the coffee company’s stock valued at $749,637,000 after buying an additional 245,223 shares during the period. Finally, Bank of New York Mellon Corp increased its position in shares of Starbucks by 11.8% during the second quarter. Bank of New York Mellon Corp now owns 11,350,031 shares of the coffee company’s stock valued at $835,247,000 after buying an additional 1,195,694 shares during the period. Institutional investors and hedge funds own 68.36% of the company’s stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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