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

Key Points

• Starbucks Corporation (NASDAQ:SBUX) has received a consensus rating of "Moderate Buy" from analysts, with 15 buy ratings and an average target price of $104.00.
• The company's most recent earnings report showed an EPS of $0.50, missing estimates, despite a 3.8% year-over-year increase in revenue.
• Starbucks announced a dividend increase to $0.62 per share, representing a 2.9% yield, with a dividend payout ratio of 105.17%.

Shares of Starbucks Corporation (NASDAQ:SBUX - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-six ratings firms that are presently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $104.00.

SBUX has been the topic of several recent research reports. Jefferies Financial Group cut Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price on the stock. in a report on Thursday, July 17th. Evercore ISI restated an "outperform" rating and set a $105.00 target price (up from $95.00) on shares of Starbucks in a report on Tuesday, June 24th. UBS Group boosted their target price on Starbucks from $95.00 to $100.00 and gave the stock a "neutral" rating in a report on Wednesday, July 30th. The Goldman Sachs Group restated a "neutral" rating and set a $95.00 target price (up from $85.00) on shares of Starbucks in a report on Thursday, June 12th. Finally, Piper Sandler set a $105.00 target price on Starbucks and gave the stock an "overweight" rating in a report on Wednesday, July 30th.

Starbucks Stock Up 2.7%

NASDAQ:SBUX opened at $86.72 on Friday. Starbucks has a 52 week low of $75.50 and a 52 week high of $117.46. The stock has a market capitalization of $98.57 billion, a PE ratio of 37.38, a price-to-earnings-growth ratio of 4.15 and a beta of 1.01. The stock's 50-day moving average price is $87.72 and its 200-day moving average price is $88.69.

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

Starbucks Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 14th will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Friday, November 14th. This is a boost from Starbucks's previous quarterly dividend of $0.61. Starbucks's dividend payout ratio is presently 105.17%.

Institutional Trading of Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC increased its position in shares of Starbucks by 86.5% during the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after acquiring an additional 81,952 shares during the period. RFG Advisory LLC increased its position in shares of Starbucks by 17.2% during the first quarter. RFG Advisory LLC now owns 12,331 shares of the coffee company's stock worth $1,210,000 after acquiring an additional 1,807 shares during the period. Hennion & Walsh Asset Management Inc. increased its position in shares of Starbucks by 16.8% during the first quarter. Hennion & Walsh Asset Management Inc. now owns 5,310 shares of the coffee company's stock worth $521,000 after acquiring an additional 765 shares during the period. Matrix Trust Co increased its holdings in Starbucks by 29.6% in the first quarter. Matrix Trust Co now owns 1,380 shares of the coffee company's stock valued at $135,000 after buying an additional 315 shares during the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. increased its holdings in Starbucks by 27.9% in the first quarter. Thurston Springer Miller Herd & Titak Inc. now owns 33,242 shares of the coffee company's stock valued at $3,261,000 after buying an additional 7,250 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Company Profile

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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