Starbucks (NASDAQ:SBUX) Sets New 1-Year High Following Better-Than-Expected Earnings

Shares of Starbucks Co. (NASDAQ:SBUX) hit a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $107.23 and last traded at $105.15, with a volume of 6902833 shares. The stock had previously closed at $100.41.

The coffee company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.68 by $0.01. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. During the same period in the prior year, the company earned $0.90 earnings per share.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, February 14th will be given a $0.61 dividend. This represents a $2.44 annualized dividend and a yield of 2.24%. The ex-dividend date of this dividend is Friday, February 14th. Starbucks’s dividend payout ratio is 78.71%.

Analysts Set New Price Targets

A number of research firms recently commented on SBUX. BTIG Research lifted their price target on shares of Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. BMO Capital Markets upped their price target on Starbucks from $110.00 to $115.00 and gave the company an “outperform” rating in a research report on Wednesday. TD Cowen reissued a “buy” rating and issued a $110.00 price objective on shares of Starbucks in a report on Monday, November 11th. Wedbush upped their price objective on shares of Starbucks from $95.00 to $100.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Citigroup lifted their target price on shares of Starbucks from $96.00 to $99.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $105.52.

Insider Transactions at Starbucks

In other news, CFO Rachel Ruggeri sold 1,452 shares of the stock in a transaction dated Friday, November 15th. The stock was sold at an average price of $99.07, for a total transaction of $143,849.64. Following the transaction, the chief financial officer now directly owns 65,648 shares in the company, valued at approximately $6,503,747.36. This represents a 2.16 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 company. Strategic Investment Solutions Inc. IL bought a new stake in shares of Starbucks in the 2nd quarter worth approximately $25,000. Financial Life Planners bought a new stake in Starbucks in the fourth quarter worth $25,000. Collier Financial purchased a new stake in Starbucks during the fourth quarter valued at about $27,000. DT Investment Partners LLC grew its stake in shares of Starbucks by 39.4% during the third quarter. DT Investment Partners LLC now owns 428 shares of the coffee company’s stock valued at $42,000 after buying an additional 121 shares during the last quarter. Finally, FSA Wealth Management LLC purchased a new position in shares of Starbucks in the third quarter worth about $49,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Trading Up 0.4 %

The firm has a fifty day moving average of $95.90 and a two-hundred day moving average of $93.00. The company has a market capitalization of $123.82 billion, a PE ratio of 32.93, a PEG ratio of 2.91 and a beta of 0.99.

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.