Royal Bank of Canada Begins Coverage on Starbucks (NASDAQ:SBUX)

Equities researchers at Royal Bank of Canada began coverage on shares of Starbucks (NASDAQ:SBUX) in a report released on Friday, Marketbeat reports. The firm set an “outperform” rating and a $115.00 price target on the coffee company’s stock. Royal Bank of Canada’s target price would indicate a potential upside of 16.85% from the company’s previous close.

SBUX has been the subject of several other reports. Bank of America decreased their price objective on Starbucks from $118.00 to $117.00 and set a “buy” rating for the company in a research report on Tuesday, October 22nd. JPMorgan Chase & Co. increased their price objective on shares of Starbucks from $90.00 to $105.00 and gave the stock an “overweight” rating in a research report on Monday, September 30th. DZ Bank cut shares of Starbucks from a “hold” rating to a “sell” rating and set a $85.00 price objective on the stock. in a research report on Wednesday, August 21st. Piper Sandler upgraded Starbucks from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $85.00 to $103.00 in a report on Tuesday, August 13th. Finally, Jefferies Financial Group downgraded Starbucks from a “hold” rating to an “underperform” rating and decreased their price objective for the stock from $80.00 to $76.00 in a report on Tuesday, September 24th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $102.81.

Starbucks Stock Performance

Shares of NASDAQ:SBUX opened at $98.42 on Friday. The company has a 50 day moving average price of $96.75 and a two-hundred day moving average price of $86.18. The company has a market capitalization of $111.53 billion, a PE ratio of 29.73, a PEG ratio of 2.85 and a beta of 0.97. Starbucks has a 52 week low of $71.55 and a 52 week high of $107.66.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 EPS for the quarter, meeting analysts’ consensus estimates of $0.80. The business had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.60 billion. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The firm’s quarterly revenue was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.06 EPS. On average, sell-side analysts forecast that Starbucks will post 3.15 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Jorgen Vig Knudstorp purchased 380 shares of Starbucks stock in a transaction that occurred on Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the purchase, the director now directly owns 36,242 shares of the company’s stock, valued at $3,316,143. This trade represents a 1.06 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 1.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Starbucks

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Strategic Investment Solutions Inc. IL acquired a new stake in Starbucks in the 2nd quarter worth about $25,000. New Millennium Group LLC acquired a new stake in shares of Starbucks in the second quarter valued at approximately $26,000. Stephens Consulting LLC boosted its stake in shares of 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 buying an additional 279 shares during the period. Hobbs Group Advisors LLC acquired a new stake in Starbucks during the second quarter worth approximately $27,000. Finally, Olistico Wealth LLC acquired a new stake in Starbucks during the second quarter worth approximately $31,000. 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.