Starbucks (NASDAQ:SBUX) Shares Gap Up on Analyst Upgrade

Key Points

• Starbucks shares surged after Robert W. Baird raised their price target from $88.00 to $100.00, resulting in an opening price of $97.83 compared to a previous close of $92.96.
• The stock has received mixed ratings from several analysts, with four sell ratings, eleven hold ratings, and fifteen buy ratings, contributing to a consensus price target of $100.19.
• Starbucks also announced a quarterly dividend of $0.61 per share to be distributed on August 29th, representing an annualized dividend yield of 2.66%.

Starbucks Corporation (NASDAQ:SBUX - Get Free Report)'s stock price gapped up before the market opened on Wednesday after Guggenheim raised their price target on the stock from $79.00 to $90.00. The stock had previously closed at $92.96, but opened at $97.83. Guggenheim currently has a neutral rating on the stock. Starbucks shares last traded at $91.78, with a volume of 12,571,775 shares.

Several other research firms have also recently weighed in on SBUX. Wells Fargo & Company boosted their price objective on Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday. Cowen reiterated a "hold" rating on shares of Starbucks in a report on Tuesday, June 24th. Robert W. Baird raised their price objective on Starbucks from $88.00 to $100.00 and gave the company a "neutral" rating in a research report on Wednesday. TD Cowen raised their price target on Starbucks from $90.00 to $95.00 and gave the stock a "hold" rating in a research note on Wednesday. Finally, Barclays lifted their target price on Starbucks from $106.00 to $115.00 and gave the company an "overweight" rating in a research report on Wednesday. Four research analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $101.27.

Institutional Investors Weigh In On Starbucks

Several large investors have recently made changes to their positions in SBUX. Nuveen LLC purchased a new position in Starbucks during the 1st quarter valued at about $1,379,619,000. Capital World Investors raised its holdings in shares of 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 acquiring an additional 9,174,682 shares in the last quarter. Jennison Associates LLC purchased a new stake in Starbucks in the first quarter worth $817,759,000. FMR LLC grew its stake in shares of Starbucks by 27.0% in the fourth quarter. FMR LLC now owns 25,128,649 shares of the coffee company's stock worth $2,292,989,000 after acquiring an additional 5,348,790 shares during the last quarter. Finally, Polen Capital Management LLC bought a new position in shares of Starbucks during the first quarter valued at $503,539,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Down 3.7%

The business has a fifty day simple moving average of $91.68 and a two-hundred day simple moving average of $94.62. The company has a market cap of $97.52 billion, a P/E ratio of 36.95, a P/E/G ratio of 6.54 and a beta of 1.02.

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 analysts' consensus estimates of $0.64 by ($0.14). The business had revenue of $9.46 billion for the quarter, compared to analysts' expectations of $9.29 billion. Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%. Starbucks'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 EPS. On average, equities analysts predict that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Dividend Announcement

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

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.