Starbucks Corporation (NASDAQ:SBUX) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Starbucks has received a consensus rating of "Moderate Buy" from 28 analysts, with an average twelve-month target price of $103.65.
• The company recently declared a quarterly dividend of $0.61 per share, with a dividend yield of 2.6% and a payout ratio of 105.17%.
• In its latest earnings report, Starbucks missed analysts' EPS estimates at $0.50, but reported revenue of $9.46 billion, exceeding expectations of $9.29 billion.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-eight ratings firms that are covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation, fifteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $103.6538.

A number of research firms have issued reports on SBUX. Evercore ISI reissued an "outperform" rating and set a $105.00 price target (up from $95.00) on shares of Starbucks in a research report on Tuesday, June 24th. Bank of America raised their price target on shares of Starbucks from $101.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Morgan Stanley reissued an "overweight" rating and set a $103.00 price target (up from $95.00) on shares of Starbucks in a research report on Wednesday, July 30th. Robert W. Baird raised shares of Starbucks from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $100.00 to $115.00 in a research note on Tuesday. Finally, Guggenheim raised their price objective on shares of Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a research note on Thursday, July 31st.

Starbucks Trading Up 0.9%

SBUX opened at $94.18 on Thursday. Starbucks has a 12-month low of $75.50 and a 12-month high of $117.46. The firm has a market capitalization of $107.05 billion, a PE ratio of 40.60, a P/E/G ratio of 5.32 and a beta of 1.02. The firm has a 50 day moving average of $92.65 and a two-hundred day moving average of $94.31.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly 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 negative return on equity of 36.23% and a net margin of 7.18%. The business had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.29 billion. During the same period in the prior year, the business posted $0.93 earnings per share. The business's quarterly revenue was up 3.8% compared to the same quarter last year. As a group, analysts predict that Starbucks will post 2.99 EPS for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be issued a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, August 15th. Starbucks's payout ratio is currently 105.17%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SBUX. University of Texas Texas AM Investment Management Co. purchased a new stake in Starbucks in the 4th quarter valued at about $25,000. Game Plan Financial Advisors LLC purchased a new stake in Starbucks in the 2nd quarter valued at about $25,000. Chelsea Counsel Co. purchased a new stake in Starbucks in the 2nd quarter valued at about $26,000. Hughes Financial Services LLC purchased a new stake in Starbucks in the 1st quarter valued at about $27,000. Finally, CBIZ Investment Advisory Services LLC raised its holdings in Starbucks by 125.2% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 286 shares of the coffee company's stock valued at $28,000 after buying an additional 159 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.

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