Starbucks (NASDAQ:SBUX) Downgraded to "Sell" Rating by Wall Street Zen

Starbucks (NASDAQ:SBUX - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Thursday.

Other analysts have also issued research reports about the stock. Citigroup reduced their price target on shares of Starbucks from $88.00 to $84.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 30th. Guggenheim reduced their target price on Starbucks from $95.00 to $83.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 29th. Wells Fargo & Company lowered their price target on Starbucks from $125.00 to $100.00 and set an "overweight" rating for the company in a report on Tuesday, April 22nd. TD Securities reduced their price objective on shares of Starbucks from $102.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, April 30th. Finally, BMO Capital Markets decreased their target price on shares of Starbucks from $115.00 to $100.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 30th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat, Starbucks currently has a consensus rating of "Hold" and an average target price of $98.72.

Starbucks Stock Up 1.1%

Shares of SBUX traded up $0.89 during midday trading on Thursday, reaching $83.87. The company had a trading volume of 2,891,268 shares, compared to its average volume of 11,171,544. Starbucks has a 1-year low of $71.55 and a 1-year high of $117.46. The firm has a 50 day simple moving average of $87.36 and a 200-day simple moving average of $96.22. The stock has a market cap of $95.31 billion, a PE ratio of 27.01, a price-to-earnings-growth ratio of 3.59 and a beta of 0.99.

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

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently modified their holdings of the company. Strategic Financial Concepts LLC purchased a new position in shares of Starbucks in the 4th quarter valued at about $62,000. Arizona State Retirement System boosted its holdings in Starbucks by 0.8% in the fourth quarter. Arizona State Retirement System now owns 327,459 shares of the coffee company's stock valued at $29,881,000 after purchasing an additional 2,722 shares in the last quarter. West Michigan Advisors LLC purchased a new position in Starbucks in the fourth quarter valued at approximately $265,000. Wernau Asset Management Inc. acquired a new stake in Starbucks during the fourth quarter worth approximately $258,000. Finally, OFI Invest Asset Management purchased a new stake in shares of Starbucks during the 4th quarter worth approximately $9,497,000. Institutional investors and hedge funds 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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