Starbucks (NASDAQ:SBUX) Now Covered by Stifel Nicolaus

Key Points

• Stifel Nicolaus initiated coverage of Starbucks with a Buy rating and a $115 price target, implying 6.57% upside from the prior close.
• Analyst views are mixed: MarketBeat reports a consensus Hold rating and average target of $108.83, based on 21 Buy, 15 Hold, and 4 Sell ratings.
• In its latest quarter, Starbucks beat EPS expectations ($0.80 vs. $0.72) but missed revenue forecasts ($9.14 billion vs. $9.22 billion); revenue fell 4.5% year over year.

Equities researchers at Stifel Nicolaus assumed coverage on shares of Starbucks (NASDAQ:SBUX - Get Free Report) in a research note issued to investors on Monday. The brokerage set a "buy" rating and a $115.00 price target on the coffee company's stock. Stifel Nicolaus's target price would suggest a potential upside of 6.57% from the stock's previous close.

A number of other research analysts have also recently commented on SBUX. BTIG Research restated a "buy" rating and issued a $115.00 price target on shares of Starbucks in a report on Friday, October 30th. Argus lifted their price objective on shares of Starbucks from $112.00 to $120.00 and gave the company a "buy" rating in a report on Friday, July 31st. Morgan Stanley lowered shares of Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. Citigroup boosted their price objective on shares of Starbucks from $104.00 to $107.00 and gave the company a "neutral" rating in a research report on Monday, November 2nd. Finally, Robert W. Baird dropped their target price on shares of Starbucks from $124.00 to $115.00 and set an "outperform" rating on the stock in a research note on Friday, October 2nd. Twenty-one equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, Starbucks has a consensus rating of "Hold" and a consensus target price of $108.83.

Starbucks Trading Up 2.4%

Shares of SBUX stock traded up $2.50 on Monday, reaching $107.91. 429,311 shares of the company's stock were exchanged, compared to its average volume of 8,142,626. Starbucks has a 52 week low of $81.97 and a 52 week high of $111.50. The stock has a market capitalization of $123.02 billion, a PE ratio of 48.84, a P/E/G ratio of 1.74 and a beta of 1.01. The company's fifty day simple moving average is $99.15 and its 200 day simple moving average is $100.05.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.72 by $0.08. The company had revenue of $9.14 billion during the quarter, compared to analysts' expectations of $9.22 billion. Starbucks had a negative return on equity of 38.61% and a net margin of 6.66%. Starbucks's revenue was down 4.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.52 EPS. As a group, sell-side analysts predict that Starbucks will post 3.22 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $105.60, for a total transaction of $235,382.40. Following the transaction, the chief executive officer owned 73,149 shares of the company's stock, valued at approximately $7,724,534.40. This represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 4,458 shares of company stock worth $449,684. 0.03% of the stock is currently owned by corporate insiders.

Institutional Trading of Starbucks

Several institutional investors and hedge funds have recently made changes to their positions in SBUX. Avantax Planning Partners Inc. boosted its holdings in Starbucks by 158.7% during the 3rd quarter. Avantax Planning Partners Inc. now owns 8,181 shares of the coffee company's stock valued at $769,000 after acquiring an additional 5,019 shares during the period. Robinhood Asset Management LLC acquired a new position in Starbucks in the 2nd quarter valued at about $10,187,000. Nykredit A S acquired a new position in Starbucks in the 2nd quarter valued at about $29,524,000. The Manufacturers Life Insurance Company purchased a new stake in Starbucks during the second quarter worth about $61,404,000. Finally, Bank of America Corp DE purchased a new stake in Starbucks during the second quarter worth about $1,581,287,000. 72.29% of the stock is currently owned by institutional investors.

Starbucks Company Profile

Starbucks Corporation is a global coffee company that roasts, markets and sells coffee and other beverages, along with food and related merchandise. Its offerings include brewed coffee, espresso-based drinks, teas and packaged coffee products.

The company serves customers through company-operated and licensed stores, as well as through retail and food-service partnerships. Its stores also sell items such as mugs and coffee-making equipment.

Founded in Seattle in 1971, Starbucks operates in North America and international markets, including China.

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