Morgan Stanley Reaffirms Overweight Rating for Starbucks (NASDAQ:SBUX)

Morgan Stanley reissued their overweight rating on shares of Starbucks (NASDAQ:SBUX) in a research note issued to investors on Wednesday morning, Benzinga reports. The firm currently has a $98.00 target price on the coffee company’s stock.

A number of other analysts have also weighed in on SBUX. UBS Group reduced their price objective on shares of Starbucks from $95.00 to $85.00 and set a neutral rating on the stock in a research report on Wednesday, May 1st. Stifel Nicolaus reduced their price objective on shares of Starbucks from $90.00 to $80.00 and set a hold rating on the stock in a research report on Wednesday, May 1st. BTIG Research dropped their target price on shares of Starbucks from $115.00 to $100.00 and set a buy rating on the stock in a research note on Wednesday, May 1st. Citigroup dropped their target price on shares of Starbucks from $85.00 to $80.00 and set a neutral rating on the stock in a research note on Monday, July 22nd. Finally, JPMorgan Chase & Co. dropped their target price on shares of Starbucks from $92.00 to $90.00 and set an overweight rating on the stock in a research note on Wednesday, July 10th. Seventeen analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of Hold and an average price target of $90.88.

Starbucks Price Performance

Starbucks stock opened at $75.88 on Wednesday. Starbucks has a 1-year low of $71.55 and a 1-year high of $107.66. The firm has a market capitalization of $85.99 billion, a P/E ratio of 20.90, a price-to-earnings-growth ratio of 1.74 and a beta of 0.94. The company’s 50-day moving average is $77.62 and its 200 day moving average is $84.66.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Tuesday, July 30th. The coffee company reported $0.93 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.93. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The company had revenue of $9.11 billion for the quarter, compared to analyst estimates of $9.25 billion. During the same period in the prior year, the company posted $1.00 EPS. The firm’s revenue for the quarter was down .6% on a year-over-year basis. Research analysts anticipate that Starbucks will post 3.55 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Investors of record on Friday, August 16th will be issued a dividend of $0.57 per share. The ex-dividend date is Friday, August 16th. This represents a $2.28 annualized dividend and a dividend yield of 3.00%. Starbucks’s dividend payout ratio (DPR) is presently 62.81%.

Insider Buying and Selling

In related news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction on Friday, June 14th. The shares were sold at an average price of $80.00, for a total transaction of $260,000.00. Following the completion of the transaction, the chief executive officer now owns 78,304 shares of the company’s stock, valued at $6,264,320. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In related news, CFO Rachel Ruggeri sold 3,750 shares of the firm’s stock in a transaction on Wednesday, May 22nd. The shares were sold at an average price of $80.00, for a total transaction of $300,000.00. Following the sale, the chief financial officer now owns 65,431 shares in the company, valued at $5,234,480. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction on Friday, June 14th. The shares were sold at an average price of $80.00, for a total transaction of $260,000.00. Following the sale, the chief executive officer now owns 78,304 shares in the company, valued at approximately $6,264,320. The disclosure for this sale can be found here. Insiders sold a total of 7,250 shares of company stock valued at $579,375 over the last 90 days. Insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vima LLC acquired a new stake in Starbucks during the fourth quarter valued at $26,000. Scarborough Advisors LLC acquired a new stake in Starbucks during the fourth quarter valued at $26,000. New Millennium Group LLC acquired a new stake in Starbucks during the second quarter valued at $26,000. Stephens Consulting LLC grew its position in Starbucks by 498.2% during the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock valued at $26,000 after buying an additional 279 shares during the period. Finally, DSM Capital Partners LLC acquired a new stake in Starbucks during the fourth quarter valued at $27,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

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.