Starbucks (NASDAQ:SBUX) Rating Increased to Hold at Zacks Research

Key Points

• Starbucks has been upgraded by Zacks Research from a "strong sell" rating to a "hold" rating, indicating a more favorable outlook.
• Analysts have raised their price targets for Starbucks, with predictions now ranging from $105 to $165, and the stock currently holds an average rating of "Moderate Buy."
• In its latest earnings report, Starbucks reported $0.50 earnings per share, missing consensus estimates, while revenue increased by 3.8% year-over-year to $9.46 billion.

Starbucks (NASDAQ:SBUX - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Wednesday,Zacks.com reports.

Several other analysts also recently weighed in on SBUX. Loop Capital set a $165.00 price objective on Starbucks in a report on Tuesday, August 12th. BMO Capital Markets restated an "outperform" rating and issued a $115.00 price objective (up from $100.00) on shares of Starbucks in a report on Wednesday, July 30th. Robert W. Baird upgraded Starbucks from a "neutral" rating to an "outperform" rating and lifted their price objective for the company from $100.00 to $115.00 in a report on Tuesday, August 12th. JPMorgan Chase & Co. lifted their price objective on Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Finally, Stifel Nicolaus boosted their target price on shares of Starbucks from $92.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, July 11th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $104.00.

Starbucks Price Performance

SBUX stock opened at $86.72 on Wednesday. The business has a 50-day moving average price of $87.72 and a 200 day moving average price of $88.69. The company has a market capitalization of $98.57 billion, a P/E ratio of 37.38, a PEG ratio of 4.15 and a beta of 1.01. Starbucks has a 1-year low of $75.50 and a 1-year high of $117.46.

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

Hedge Funds Weigh In On Starbucks

Several hedge funds have recently modified their holdings of SBUX. Game Plan Financial Advisors LLC acquired a new position in shares of Starbucks during the second quarter valued at about $25,000. Transce3nd LLC increased its holdings in shares of Starbucks by 270.3% during the second quarter. Transce3nd LLC now owns 274 shares of the coffee company's stock valued at $25,000 after acquiring an additional 200 shares in the last quarter. Chelsea Counsel Co. purchased a new stake in Starbucks in the second quarter valued at approximately $26,000. Hughes Financial Services LLC purchased a new stake in Starbucks in the first quarter valued at approximately $27,000. Finally, CBIZ Investment Advisory Services LLC boosted its position in Starbucks by 125.2% in the first 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 last quarter. Institutional investors and hedge funds 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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