Starbucks (NASDAQ:SBUX) Shares Up 2.2% - Still a Buy?

Shares of Starbucks Co. (NASDAQ:SBUX - Get Free Report) shot up 2.2% during trading on Tuesday . The company traded as high as $86.88 and last traded at $86.22. 3,627,826 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 11,088,196 shares. The stock had previously closed at $84.40.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Guggenheim lowered their target price on shares of Starbucks from $95.00 to $83.00 and set a "neutral" rating for the company in a research note on Tuesday, April 29th. Citigroup reduced their target price on shares of Starbucks from $88.00 to $84.00 and set a "neutral" rating for the company in a report on Wednesday, April 30th. UBS Group reduced their target price on shares of Starbucks from $105.00 to $90.00 and set a "neutral" rating for the company in a report on Monday, April 28th. BMO Capital Markets dropped 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. Finally, Jefferies Financial Group upgraded shares of Starbucks from an "underperform" rating to a "hold" rating and set a $76.00 price target on the stock in a research report on Wednesday, April 9th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and sixteen have issued a buy rating to the stock. According to data from MarketBeat.com, Starbucks presently has a consensus rating of "Hold" and a consensus price target of $98.72.

Starbucks Price Performance

The company has a market capitalization of $98.81 billion, a price-to-earnings ratio of 28.07, a price-to-earnings-growth ratio of 3.59 and a beta of 0.99. The business has a fifty day moving average price of $86.48 and a 200 day moving average price of $95.95.

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). The company had revenue of $8.76 billion for 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 was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.68 earnings per share. As a group, sell-side analysts predict that Starbucks Co. will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Friday, May 16th will be given a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a yield of 2.81%. The ex-dividend date of this dividend is Friday, May 16th. Starbucks's dividend payout ratio is presently 88.41%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Nuveen LLC acquired a new position in Starbucks in the 1st quarter valued at $1,379,619,000. Norges Bank acquired a new position in shares of Starbucks during the 4th quarter worth $1,244,812,000. Capital World Investors increased its holdings in Starbucks by 20.1% in the 4th quarter. Capital World Investors now owns 54,924,230 shares of the coffee company's stock worth $5,011,796,000 after purchasing an additional 9,174,682 shares in the last quarter. Jennison Associates LLC acquired a new position in Starbucks in the 1st quarter worth about $817,759,000. Finally, FMR LLC increased its holdings in Starbucks by 27.0% in the 4th quarter. FMR LLC now owns 25,128,649 shares of the coffee company's stock worth $2,292,989,000 after purchasing an additional 5,348,790 shares in the last quarter. 72.29% of the stock is currently owned by 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.

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