Starbucks (NASDAQ:SBUX) Earns Buy Rating from TD Cowen

TD Cowen reaffirmed their buy rating on shares of Starbucks (NASDAQ:SBUX) in a research report sent to investors on Monday,Benzinga reports. TD Cowen currently has a $110.00 price target on the coffee company’s stock.

A number of other brokerages also recently issued reports on SBUX. Evercore ISI raised shares of Starbucks from an “in-line” rating to an “outperform” rating and boosted their price objective for the company from $80.00 to $120.00 in a research report on Wednesday, August 14th. Citigroup increased their target price on shares of Starbucks from $96.00 to $99.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. BTIG Research lifted their target price on shares of Starbucks from $100.00 to $115.00 and gave the company a “buy” rating in a research note on Thursday, October 17th. Piper Sandler upgraded Starbucks from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $85.00 to $103.00 in a research note on Tuesday, August 13th. Finally, Barclays dropped their price target on Starbucks from $110.00 to $108.00 and set an “overweight” rating for the company in a research note on Thursday, October 31st. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $102.31.

Starbucks Price Performance

SBUX stock opened at $99.23 on Monday. Starbucks has a 1 year low of $71.55 and a 1 year high of $107.66. The company has a market cap of $112.45 billion, a P/E ratio of 29.98, a price-to-earnings-growth ratio of 2.89 and a beta of 0.97. The stock’s fifty day moving average price is $96.45 and its 200-day moving average price is $86.03.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.80. The business had revenue of $9.07 billion during the quarter, compared to the consensus estimate of $9.60 billion. Starbucks had a negative return on equity of 46.39% and a net margin of 10.40%. The business’s quarterly revenue was down 3.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.06 EPS. As a group, analysts expect that Starbucks will post 3.15 earnings per share for the current year.

Starbucks Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a dividend of $0.61 per share. This is an increase from Starbucks’s previous quarterly dividend of $0.57. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.46%. Starbucks’s dividend payout ratio is presently 73.72%.

Insider Activity

In other Starbucks news, Director Jorgen Vig Knudstorp acquired 380 shares of the business’s stock in a transaction that occurred on Friday, September 6th. The shares were bought at an average cost of $91.50 per share, with a total value of $34,770.00. Following the completion of the acquisition, the director now directly owns 36,242 shares in the company, valued at $3,316,143. This represents a 1.06 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Strategic Investment Solutions Inc. IL purchased a new position in Starbucks in the second quarter valued at about $25,000. New Millennium Group LLC purchased a new stake in Starbucks during the second quarter valued at approximately $26,000. Stephens Consulting LLC boosted its stake in Starbucks by 498.2% in the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock valued at $26,000 after acquiring an additional 279 shares in the last quarter. Hobbs Group Advisors LLC purchased a new position in Starbucks in the second quarter worth $27,000. Finally, Olistico Wealth LLC acquired a new position in shares of Starbucks during the second quarter worth $31,000. Institutional investors 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.