Wells Fargo & Company Increases Starbucks (NASDAQ:SBUX) Price Target to $105.00

Key Points

• Wells Fargo & Company has raised Starbucks’ price target to $105.00, indicating a potential upside of 14.43% from its previous close.
• Starbucks reported earnings of $0.50 EPS, missing expectations, despite generating revenue of $9.46 billion for the quarter, which exceeded analyst estimates.
• The current consensus rating from analysts for Starbucks stock is a "Hold", reflecting various assessments, including four sell ratings and fifteen buy ratings.

Starbucks (NASDAQ:SBUX - Free Report) had its target price raised by Wells Fargo & Company from $100.00 to $105.00 in a report published on Wednesday,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the coffee company's stock.

Other analysts have also issued reports about the stock. Citigroup reissued a "neutral" rating and issued a $100.00 price objective (up from $95.00) on shares of Starbucks in a research report on Monday, July 14th. Barclays reduced their price objective on shares of Starbucks from $108.00 to $106.00 and set an "overweight" rating on the stock in a research report on Thursday, July 17th. Guggenheim reduced their price objective on shares of Starbucks from $95.00 to $83.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 29th. CICC Research assumed coverage on shares of Starbucks in a research report on Monday, June 30th. They issued an "outperform" rating and a $100.00 price objective on the stock. Finally, Royal Bank Of Canada increased their price objective on shares of Starbucks from $100.00 to $110.00 and gave the stock an "outperform" rating in a research report on Wednesday. Four analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have given a buy rating to the company's stock. According to data from MarketBeat, Starbucks presently has an average rating of "Hold" and a consensus target price of $101.27.

Starbucks Trading Down 2.6%

Shares of NASDAQ:SBUX traded down $2.30 during trading on Wednesday, reaching $86.86. The company's stock had a trading volume of 16,215,272 shares, compared to its average volume of 10,280,721. Starbucks has a 12 month low of $72.72 and a 12 month high of $117.46. The firm's 50 day simple moving average is $91.73 and its two-hundred day simple moving average is $94.58. The stock has a market capitalization of $98.73 billion, a PE ratio of 37.44, a price-to-earnings-growth ratio of 5.08 and a beta of 1.02.

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

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be paid a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Friday, August 15th. Starbucks's payout ratio is presently 105.17%.

Institutional Investors Weigh In On Starbucks

Several institutional investors and hedge funds have recently made changes to their positions in SBUX. Nuveen LLC acquired a new position in Starbucks during the first quarter valued at $1,379,619,000. Capital World Investors lifted its position in Starbucks by 20.1% during the fourth quarter. Capital World Investors now owns 54,924,230 shares of the coffee company's stock valued at $5,011,796,000 after purchasing an additional 9,174,682 shares during the period. Jennison Associates LLC acquired a new position in Starbucks during the first quarter valued at $817,759,000. FMR LLC lifted its position in Starbucks by 27.0% during the fourth quarter. FMR LLC now owns 25,128,649 shares of the coffee company's stock valued at $2,292,989,000 after purchasing an additional 5,348,790 shares during the period. Finally, Polen Capital Management LLC acquired a new position in Starbucks during the first quarter valued at $503,539,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

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.