DZ Bank Downgrades Starbucks (NASDAQ:SBUX) to Hold

Starbucks (NASDAQ:SBUX - Get Free Report) was downgraded by stock analysts at DZ Bank from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Friday, Marketbeat reports. They presently have a $75.00 price target on the coffee company's stock. DZ Bank's target price would suggest a potential upside of 2.59% from the stock's current price.

Several other brokerages have also recently issued reports on SBUX. Barclays reduced their price objective on Starbucks from $116.00 to $112.00 and set an "overweight" rating for the company in a research note on Wednesday, January 31st. Wedbush reduced their price objective on Starbucks from $95.00 to $92.00 and set a "neutral" rating for the company in a research note on Friday, April 26th. TD Cowen dropped their target price on Starbucks from $100.00 to $85.00 and set a "hold" rating on the stock in a report on Wednesday. Stephens reaffirmed an "equal weight" rating and set a $110.00 target price on shares of Starbucks in a report on Wednesday, January 31st. Finally, UBS Group dropped their target price on Starbucks from $95.00 to $85.00 and set a "neutral" rating on the stock in a report on Wednesday. Seventeen analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $98.38.

Starbucks Price Performance

Starbucks stock traded down $1.82 during midday trading on Friday, reaching $73.11. The company's stock had a trading volume of 22,115,226 shares, compared to its average volume of 9,469,554. The stock's 50-day simple moving average is $89.34 and its 200-day simple moving average is $93.98. Starbucks has a 52-week low of $72.67 and a 52-week high of $108.12. The stock has a market capitalization of $82.81 billion, a P/E ratio of 20.14, a PEG ratio of 1.28 and a beta of 0.97.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Tuesday, April 30th. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.79 by ($0.11). Starbucks had a negative return on equity of 49.91% and a net margin of 11.38%. The firm had revenue of $8.56 billion during the quarter, compared to analysts' expectations of $9.12 billion. During the same quarter in the previous year, the business earned $0.74 earnings per share. The company's revenue for the quarter was down 1.8% compared to the same quarter last year. As a group, equities research analysts expect that Starbucks will post 3.89 earnings per share for the current fiscal year.

Insider Transactions at Starbucks

In other news, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction that occurred on Monday, April 15th. The stock was sold at an average price of $85.39, for a total value of $277,517.50. Following the sale, the chief executive officer now directly owns 81,199 shares of the company's stock, valued at $6,933,582.61. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have sold 7,250 shares of company stock valued at $651,738 over the last ninety days. Insiders own 1.98% of the company's stock.

Hedge Funds Weigh In On Starbucks

A number of institutional investors have recently added to or reduced their stakes in SBUX. Norges Bank purchased a new position in Starbucks during the fourth quarter worth approximately $1,240,652,000. Flossbach Von Storch AG lifted its position in Starbucks by 8,677.8% during the fourth quarter. Flossbach Von Storch AG now owns 2,715,405 shares of the coffee company's stock worth $260,706,000 after buying an additional 2,684,470 shares in the last quarter. Van ECK Associates Corp lifted its position in Starbucks by 2,624.3% during the first quarter. Van ECK Associates Corp now owns 2,150,309 shares of the coffee company's stock worth $196,516,000 after buying an additional 2,071,378 shares in the last quarter. Bank of Nova Scotia raised its position in Starbucks by 342.7% in the fourth quarter. Bank of Nova Scotia now owns 2,160,737 shares of the coffee company's stock valued at $207,444,000 after purchasing an additional 1,672,656 shares during the period. Finally, Los Angeles Capital Management LLC raised its position in Starbucks by 432.5% in the fourth quarter. Los Angeles Capital Management LLC now owns 2,039,633 shares of the coffee company's stock valued at $195,825,000 after purchasing an additional 1,656,591 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

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.