Starbucks (NASDAQ:SBUX) Downgraded to "Neutral" Rating by The Goldman Sachs Group

The Goldman Sachs Group downgraded shares of Starbucks (NASDAQ:SBUX - Free Report) from a buy rating to a neutral rating in a research report sent to investors on Wednesday morning, MarketBeat Ratings reports. They currently have $85.00 target price on the coffee company's stock, down from their prior target price of $103.00.

A number of other brokerages also recently issued reports on SBUX. Royal Bank of Canada reaffirmed an "outperform" rating and issued a $115.00 target price on shares of Starbucks in a research note on Friday, January 24th. Wells Fargo & Company cut their price objective on shares of Starbucks from $125.00 to $100.00 and set an "overweight" rating for the company in a research report on Tuesday, April 22nd. Guggenheim decreased their target price on shares of Starbucks from $95.00 to $83.00 and set a "neutral" rating on the stock in a report on Tuesday. Citigroup cut their price target on shares of Starbucks from $100.00 to $88.00 and set a "neutral" rating for the company in a report on Friday, April 11th. Finally, Barclays decreased their price objective on Starbucks from $124.00 to $106.00 and set an "overweight" rating on the stock in a report on Tuesday, April 22nd. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and sixteen have assigned a buy rating to the company. Based on data from MarketBeat, Starbucks has a consensus rating of "Hold" and an average target price of $98.15.

Starbucks Trading Up 3.3 %

SBUX traded up $2.68 on Wednesday, reaching $84.69. The stock had a trading volume of 13,504,780 shares, compared to its average volume of 11,404,175. The business's 50-day moving average price is $93.22 and its two-hundred day moving average price is $97.38. The company has a market cap of $96.20 billion, a P/E ratio of 27.32, a price-to-earnings-growth ratio of 3.59 and a beta of 1.00. Starbucks has a 12-month low of $71.55 and a 12-month high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings results on Tuesday, April 29th. The coffee company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.51 by ($0.10). The business had revenue of $8.76 billion during the quarter, compared to analyst estimates of $8.90 billion. Starbucks had a negative return on equity of 44.97% and a net margin of 9.73%. The business's revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.68 EPS. As a group, analysts predict that Starbucks will post 2.99 earnings per share for the current year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Friday, May 16th will be paid a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a yield of 2.88%. The ex-dividend date of this dividend is Friday, May 16th. Starbucks's payout ratio is 78.71%.

Hedge Funds Weigh In On Starbucks

Several hedge funds have recently added to or reduced their stakes in the stock. TrinityPoint Wealth LLC grew its position 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 buying an additional 89 shares during the last quarter. Pioneer Trust Bank N A OR grew its holdings in shares of Starbucks by 0.8% during the fourth quarter. Pioneer Trust Bank N A OR now owns 11,312 shares of the coffee company's stock worth $1,032,000 after purchasing an additional 92 shares during the last quarter. Wintrust Investments LLC increased its position in shares of Starbucks by 7.1% during the fourth quarter. Wintrust Investments LLC now owns 1,411 shares of the coffee company's stock worth $128,000 after purchasing an additional 94 shares in the last quarter. Kuhn & Co Investment Counsel lifted its holdings in shares of Starbucks by 2.3% in the 4th quarter. Kuhn & Co Investment Counsel now owns 4,240 shares of the coffee company's stock valued at $387,000 after purchasing an additional 96 shares during the last quarter. Finally, Foster Dykema Cabot & Partners LLC boosted its position in shares of 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 purchasing an additional 97 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

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.