Starbucks (NASDAQ:SBUX) Shares Up 1.6% Following Analyst Upgrade

Starbucks Co. (NASDAQ:SBUX)’s stock price rose 1.6% during mid-day trading on Thursday after Bank of America raised their price target on the stock from $112.00 to $118.00. Bank of America currently has a buy rating on the stock. Starbucks traded as high as $98.70 and last traded at $97.64. Approximately 2,939,579 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 11,858,657 shares. The stock had previously closed at $96.12.

Several other analysts also recently weighed in on SBUX. Citigroup lifted their target price on Starbucks from $82.00 to $98.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 14th. TD Cowen restated a “buy” rating and issued a $110.00 target price on shares of Starbucks in a research note on Thursday, September 12th. Barclays raised their target price on shares of Starbucks from $93.00 to $110.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 14th. JPMorgan Chase & Co. dropped their price objective on Starbucks from $92.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 10th. Finally, Robert W. Baird raised Starbucks from a “neutral” rating to an “outperform” rating and increased their price target for the stock from $81.00 to $110.00 in a research report on Tuesday, August 13th. One analyst has rated the stock with a sell rating, eleven have given a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $100.08.

Insider Activity

In other news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $94.03, for a total transaction of $305,597.50. Following the sale, the chief executive officer now directly owns 75,054 shares in the company, valued at approximately $7,057,327.62. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Starbucks news, Director Jorgen Vig Knudstorp purchased 380 shares of the stock in a transaction that occurred on Friday, September 6th. The shares were purchased at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the completion of the transaction, the director now owns 36,242 shares of the company’s stock, valued at approximately $3,316,143. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $94.03, for a total transaction of $305,597.50. Following the completion of the sale, the chief executive officer now owns 75,054 shares of the company’s stock, valued at approximately $7,057,327.62. The disclosure for this sale can be found here. Insiders own 1.98% of the company’s stock.

Institutional Investors Weigh In On Starbucks

Large investors have recently made changes to their positions in the stock. Ontario Teachers Pension Plan Board purchased a new stake in shares of Starbucks in the first quarter valued at about $415,167,000. Marshall Wace LLP lifted its holdings in Starbucks by 1,466.3% in the second quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock valued at $260,870,000 after acquiring an additional 3,136,992 shares during the last quarter. Diamond Hill Capital Management Inc. purchased a new position in Starbucks in the second quarter worth approximately $243,910,000. Flossbach Von Storch AG raised its position in Starbucks by 106.7% in the first quarter. Flossbach Von Storch AG now owns 5,612,687 shares of the coffee company’s stock valued at $512,943,000 after purchasing an additional 2,897,282 shares during the period. Finally, Capital World Investors acquired a new position in shares of Starbucks in the 1st quarter valued at $257,721,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Trading Up 1.2 %

The firm has a market capitalization of $110.13 billion, a PE ratio of 26.87, a PEG ratio of 2.38 and a beta of 0.96. The business has a fifty day moving average price of $85.77 and a two-hundred day moving average price of $83.98.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.93. The firm had revenue of $9.11 billion for the quarter, compared to analyst estimates of $9.25 billion. Starbucks had a negative return on equity of 49.38% and a net margin of 11.16%. Starbucks’s revenue was down .6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.00 EPS. On average, equities analysts forecast that Starbucks Co. will post 3.56 earnings per share for the current fiscal year.

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.