Investors Buy Starbucks (SBUX) on Weakness

Investors purchased shares of Starbucks Co. (NASDAQ:SBUX) on weakness during trading hours on Monday. $121.63 million flowed into the stock on the tick-up and $70.28 million flowed out of the stock on the tick-down, for a money net flow of $51.35 million into the stock. Of all companies tracked, Starbucks had the 14th highest net in-flow for the day. Starbucks traded down ($0.49) for the day and closed at $76.16

Several equities research analysts recently commented on SBUX shares. Goldman Sachs Group lowered shares of Starbucks from a “buy” rating to a “neutral” rating and cut their price target for the stock from $75.00 to $68.00 in a report on Friday, January 11th. BMO Capital Markets dropped their target price on shares of Starbucks to $60.00 and set a “market perform” rating for the company in a report on Friday, January 11th. They noted that the move was a valuation call. Oppenheimer reaffirmed an “outperform” rating and set a $72.00 target price (up previously from $70.00) on shares of Starbucks in a report on Friday, January 25th. CIBC upped their target price on shares of Starbucks from $70.00 to $72.00 and gave the stock an “outperform” rating in a report on Friday, January 25th. Finally, Bank of America set a $75.00 target price on shares of Starbucks and gave the stock a “buy” rating in a report on Friday, January 25th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $68.00.

The company has a debt-to-equity ratio of 7.73, a quick ratio of 1.16 and a current ratio of 1.41. The firm has a market cap of $93.72 billion, a PE ratio of 30.99, a PEG ratio of 2.18 and a beta of 0.51.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Thursday, January 24th. The coffee company reported $0.75 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.65 by $0.10. Starbucks had a net margin of 11.98% and a return on equity of 193.00%. The firm had revenue of $6.63 billion during the quarter, compared to analyst estimates of $6.49 billion. During the same quarter in the prior year, the firm posted $0.65 earnings per share. Starbucks’s quarterly revenue was up 9.2% on a year-over-year basis. As a group, analysts anticipate that Starbucks Co. will post 2.72 earnings per share for the current fiscal year.

In other Starbucks news, EVP Vivek C. Varma sold 73,242 shares of the company’s stock in a transaction dated Friday, February 1st. The shares were sold at an average price of $68.36, for a total value of $5,006,823.12. Following the transaction, the executive vice president now owns 140,882 shares of the company’s stock, valued at $9,630,693.52. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Vivek C. Varma sold 50,000 shares of the company’s stock in a transaction dated Wednesday, February 6th. The shares were sold at an average price of $69.13, for a total transaction of $3,456,500.00. Following the completion of the transaction, the executive vice president now directly owns 117,640 shares in the company, valued at approximately $8,132,453.20. The disclosure for this sale can be found here. Insiders sold 565,806 shares of company stock valued at $38,789,988 in the last three months. 3.98% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. St. Johns Investment Management Company LLC lifted its position in Starbucks by 114.3% in the first quarter. St. Johns Investment Management Company LLC now owns 1,500 shares of the coffee company’s stock valued at $112,000 after buying an additional 800 shares during the last quarter. Country Trust Bank lifted its position in Starbucks by 31.1% in the first quarter. Country Trust Bank now owns 960 shares of the coffee company’s stock valued at $71,000 after buying an additional 228 shares during the last quarter. DORCHESTER WEALTH MANAGEMENT Co lifted its position in Starbucks by 43.4% in the first quarter. DORCHESTER WEALTH MANAGEMENT Co now owns 5,450 shares of the coffee company’s stock valued at $405,000 after buying an additional 1,650 shares during the last quarter. Kistler Tiffany Companies LLC lifted its position in Starbucks by 1.5% in the first quarter. Kistler Tiffany Companies LLC now owns 9,461 shares of the coffee company’s stock valued at $703,000 after buying an additional 142 shares during the last quarter. Finally, Prime Capital Investment Advisors LLC lifted its position in Starbucks by 851.4% in the first quarter. Prime Capital Investment Advisors LLC now owns 41,403 shares of the coffee company’s stock valued at $3,078,000 after buying an additional 37,051 shares during the last quarter. 73.34% of the stock is currently owned by institutional investors.

COPYRIGHT VIOLATION NOTICE: This report was originally reported by The Lincolnian Online and is owned by of The Lincolnian Online. If you are accessing this report on another publication, it was illegally copied and republished in violation of U.S. & international copyright law. The original version of this report can be read at https://www.thelincolnianonline.com/2019/04/17/investors-buy-starbucks-sbux-on-weakness.html.

Starbucks Company Profile (NASDAQ:SBUX)

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.

Further Reading: What are the advantages of the Stochastic Momentum Index?

Receive News & Ratings for Starbucks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Starbucks and related companies with MarketBeat.com's FREE daily email newsletter.