UBS Group Lowers Starbucks (SBUX) to Sell

UBS Group cut shares of Starbucks (NASDAQ:SBUX) from a hold rating to a sell rating in a report issued on Monday morning, The Fly reports.

A number of other equities research analysts also recently issued reports on the company. Wells Fargo & Co boosted their price target on Starbucks from $60.00 to $64.00 and gave the company an outperform rating in a research note on Wednesday, October 17th. Zacks Investment Research downgraded Starbucks from a hold rating to a sell rating in a research note on Friday, September 28th. KeyCorp restated a buy rating on shares of Starbucks in a research note on Thursday, October 4th. BidaskClub upgraded Starbucks from a hold rating to a buy rating in a research note on Wednesday, September 12th. Finally, ValuEngine upgraded Starbucks from a sell rating to a hold rating in a research note on Friday, September 7th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and seventeen have assigned a buy rating to the stock. Starbucks currently has a consensus rating of Hold and a consensus price target of $63.48.

Starbucks stock opened at $68.76 on Monday. The stock has a market cap of $89.05 billion, a price-to-earnings ratio of 28.37, a PEG ratio of 1.78 and a beta of 0.48. Starbucks has a 52-week low of $47.37 and a 52-week high of $68.98. The company has a quick ratio of 1.95, a current ratio of 2.20 and a debt-to-equity ratio of 7.73.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, November 1st. The coffee company reported $0.62 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.60 by $0.02. The business had revenue of $6.30 billion during the quarter, compared to the consensus estimate of $6.28 billion. Starbucks had a return on equity of 86.33% and a net margin of 18.28%. The business’s quarterly revenue was up 10.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.55 EPS. On average, sell-side analysts expect that Starbucks will post 2.65 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 30th. Investors of record on Thursday, November 15th will be issued a $0.36 dividend. The ex-dividend date of this dividend is Wednesday, November 14th. This represents a $1.44 dividend on an annualized basis and a yield of 2.09%. Starbucks’s dividend payout ratio is presently 59.50%.

In other Starbucks news, insider Rosalind G. Brewer purchased 5,000 shares of the stock in a transaction that occurred on Monday, August 20th. The shares were bought at an average cost of $54.04 per share, with a total value of $270,200.00. Following the acquisition, the insider now owns 7,302 shares in the company, valued at $394,600.08. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Myron E. Ullman III sold 99,166 shares of the business’s stock in a transaction that occurred on Wednesday, September 12th. The stock was sold at an average price of $55.05, for a total value of $5,459,088.30. Following the completion of the transaction, the director now directly owns 29,000 shares in the company, valued at $1,596,450. The disclosure for this sale can be found here. Over the last three months, insiders sold 280,832 shares of company stock worth $15,052,087. 3.40% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of SBUX. Parnassus Investments CA lifted its holdings in Starbucks by 26.8% in the 2nd quarter. Parnassus Investments CA now owns 12,052,546 shares of the coffee company’s stock worth $588,767,000 after purchasing an additional 2,543,697 shares in the last quarter. Charles Schwab Investment Advisory Inc. purchased a new stake in shares of Starbucks during the 2nd quarter worth approximately $105,420,000. Magellan Asset Management Ltd raised its holdings in shares of Starbucks by 5.2% during the 2nd quarter. Magellan Asset Management Ltd now owns 32,392,116 shares of the coffee company’s stock worth $1,582,355,000 after acquiring an additional 1,613,187 shares in the last quarter. Fiera Capital Corp raised its holdings in shares of Starbucks by 3,492.3% during the 2nd quarter. Fiera Capital Corp now owns 1,274,578 shares of the coffee company’s stock worth $62,262,000 after acquiring an additional 1,239,097 shares in the last quarter. Finally, Morgan Stanley raised its holdings in shares of Starbucks by 2.0% during the 2nd quarter. Morgan Stanley now owns 47,116,946 shares of the coffee company’s stock worth $2,301,661,000 after acquiring an additional 928,175 shares in the last quarter. 71.77% of the stock is currently owned by institutional investors.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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