Citigroup Lowers Starbucks (NASDAQ:SBUX) Price Target to $99.00

Key Points

• Citigroup has lowered its price target for Starbucks stock from $100.00 to $99.00, maintaining a "neutral" rating.
• Starbucks reported $0.50 EPS for the last quarter, missing expectations, with revenue of $9.46 billion, which exceeded forecasts.
• The stock currently has a consensus rating of "Hold" from analysts, with an average price target of $101.00.

Starbucks (NASDAQ:SBUX - Free Report) had its price target reduced by Citigroup from $100.00 to $99.00 in a research report report published on Wednesday,Benzinga reports. They currently have a neutral rating on the coffee company's stock.

Several other research firms have also recently weighed in on SBUX. Stifel Nicolaus boosted their price objective on shares of Starbucks from $92.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Cowen reiterated a "hold" rating on shares of Starbucks in a research report on Tuesday, June 24th. Wall Street Zen cut shares of Starbucks from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Jefferies Financial Group cut shares of Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price for the company. in a research report on Thursday, July 17th. Finally, TD Securities reiterated a "hold" rating and set a $90.00 target price on shares of Starbucks in a research report on Monday, June 23rd. Four equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and fifteen have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $101.27.

Starbucks Price Performance

Shares of NASDAQ:SBUX traded down $3.29 during trading on Wednesday, reaching $85.87. The stock had a trading volume of 5,322,267 shares, compared to its average volume of 10,604,690. Starbucks has a 52 week low of $72.72 and a 52 week high of $117.46. The business's 50-day moving average price is $91.68 and its 200 day moving average price is $94.62. The stock has a market capitalization of $97.58 billion, a PE ratio of 36.97, a P/E/G ratio of 6.54 and a beta of 1.02.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Tuesday, July 29th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.64 by ($0.14). Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%. The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.29 billion. During the same quarter last year, the firm posted $0.93 EPS. The business's revenue was up 3.8% on a year-over-year basis. Analysts forecast that Starbucks will post 2.99 EPS for the current year.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.8%. Starbucks's payout ratio is 105.17%.

Institutional Investors Weigh In On Starbucks

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. TrinityPoint Wealth LLC raised its holdings in shares of Starbucks by 2.7% in the 4th quarter. TrinityPoint Wealth LLC now owns 3,421 shares of the coffee company's stock valued at $312,000 after purchasing an additional 89 shares during the period. Pioneer Trust Bank N A OR raised its holdings in Starbucks by 0.8% in the 4th quarter. Pioneer Trust Bank N A OR now owns 11,312 shares of the coffee company's stock valued at $1,032,000 after acquiring an additional 92 shares during the period. Foster Dykema Cabot & Partners LLC raised its holdings in Starbucks by 10.6% in the 4th quarter. Foster Dykema Cabot & Partners LLC now owns 1,014 shares of the coffee company's stock valued at $93,000 after acquiring an additional 97 shares during the period. Gamco Investors INC. ET AL raised its holdings in Starbucks by 3.5% in the 4th quarter. Gamco Investors INC. ET AL now owns 2,860 shares of the coffee company's stock valued at $261,000 after acquiring an additional 97 shares during the period. Finally, Taurus Asset Management LLC raised its holdings in Starbucks by 0.5% in the 4th quarter. Taurus Asset Management LLC now owns 21,895 shares of the coffee company's stock valued at $1,998,000 after acquiring an additional 100 shares during the period. 72.29% of the stock is owned by 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.