Starbucks (NASDAQ:SBUX) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS Group has increased its price target for Starbucks (NASDAQ:SBUX) from $95.00 to $100.00, indicating a potential upside of 8.81% from its current price, while maintaining a "neutral" rating.
• Other brokerages have also adjusted their ratings on Starbucks, with Evercore ISI setting a price target of $105.00 and Royal Bank of Canada raising theirs to $110.00, both with "outperform" ratings.
• In its latest quarterly results, Starbucks reported $0.50 earnings per share, missing estimates, but its revenue rose to $9.46 billion, exceeding expectations.

Starbucks (NASDAQ:SBUX - Free Report) had its target price upped by UBS Group from $95.00 to $100.00 in a research note issued to investors on Wednesday morning,Benzinga reports. They currently have a neutral rating on the coffee company's stock.

Several other equities analysts also recently commented on SBUX. CICC Research assumed coverage on Starbucks in a report on Monday, June 30th. They set an "outperform" rating and a $100.00 price target on the stock. Wells Fargo & Company increased their price target on Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a report on Wednesday. Cowen reiterated a "hold" rating on shares of Starbucks in a report on Tuesday, June 24th. TD Securities reiterated a "hold" rating and set a $90.00 price target on shares of Starbucks in a report on Monday, June 23rd. Finally, Wall Street Zen cut Starbucks from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Four equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and fifteen have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $101.27.

Starbucks Trading Down 3.8%

NASDAQ SBUX traded down $3.35 during trading on Wednesday, reaching $85.81. The company's stock had a trading volume of 5,322,267 shares, compared to its average volume of 10,604,690. The stock has a market capitalization of $97.51 billion, a PE ratio of 36.97, a PEG ratio of 6.54 and a beta of 1.02. The business has a 50-day moving average price of $91.68 and a 200-day moving average price of $94.62. Starbucks has a 1-year low of $72.72 and a 1-year high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results 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 during the quarter, compared to analyst estimates 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 last year, the firm earned $0.93 earnings per share. As a group, analysts expect that Starbucks will post 2.99 earnings per share for the current year.

Starbucks Announces Dividend

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

Institutional Trading of Starbucks

Several hedge funds have recently added to or reduced their stakes in the business. Bessemer Group Inc. raised its stake in Starbucks by 1.8% during the 2nd quarter. Bessemer Group Inc. now owns 58,284 shares of the coffee company's stock worth $5,341,000 after buying an additional 1,041 shares during the period. First Command Advisory Services Inc. increased its stake in Starbucks by 5.3% in the 2nd quarter. First Command Advisory Services Inc. now owns 5,369 shares of the coffee company's stock valued at $492,000 after buying an additional 271 shares during the last quarter. Banco Santander S.A. increased its stake in Starbucks by 41.3% in the 2nd quarter. Banco Santander S.A. now owns 100,215 shares of the coffee company's stock valued at $9,183,000 after buying an additional 29,267 shares during the last quarter. OVERSEA CHINESE BANKING Corp Ltd lifted its stake in Starbucks by 395.1% in the second quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 14,730 shares of the coffee company's stock valued at $1,353,000 after acquiring an additional 11,755 shares during the last quarter. Finally, Solstein Capital LLC lifted its stake in Starbucks by 335.2% in the second quarter. Solstein Capital LLC now owns 1,384 shares of the coffee company's stock valued at $127,000 after acquiring an additional 1,066 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.