Starbucks (NASDAQ:SBUX) announced its earnings results on Monday. The coffee company reported $0.72 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.80 by ($0.08), MarketWatch Earnings reports. Starbucks had a net margin of 14.45% and a negative return on equity of 55.34%. The firm had revenue of $8.05 billion during the quarter, compared to analyst estimates of $7.95 billion. During the same period in the prior year, the business posted $0.61 EPS. The firm’s quarterly revenue was up 19.3% compared to the same quarter last year.
Shares of Starbucks stock opened at $98.76 on Wednesday. The company has a fifty day simple moving average of $108.27 and a 200-day simple moving average of $112.72. Starbucks has a 12-month low of $93.79 and a 12-month high of $126.32. The stock has a market cap of $115.87 billion, a price-to-earnings ratio of 27.82, a PEG ratio of 1.42 and a beta of 0.83.
The business also recently announced a quarterly dividend, which will be paid on Friday, February 25th. Stockholders of record on Friday, February 11th will be issued a $0.49 dividend. This represents a $1.96 annualized dividend and a dividend yield of 1.98%. The ex-dividend date of this dividend is Thursday, February 10th. Starbucks’s payout ratio is 55.21%.
In related news, EVP Angela Lis sold 6,000 shares of the stock in a transaction on Friday, December 10th. The shares were sold at an average price of $116.88, for a total transaction of $701,280.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Michael Aaron Conway sold 47,088 shares of the stock in a transaction on Monday, November 22nd. The stock was sold at an average price of $111.50, for a total transaction of $5,250,312.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 307,118 shares of company stock valued at $35,431,134. Company insiders own 0.36% of the company’s stock.
An institutional investor recently raised its position in Starbucks stock. American International Group Inc. grew its position in shares of Starbucks Co. (NASDAQ:SBUX) by 0.7% in the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 480,129 shares of the coffee company’s stock after buying an additional 3,542 shares during the quarter. American International Group Inc.’s holdings in Starbucks were worth $52,963,000 as of its most recent filing with the SEC. 68.26% of the stock is currently owned by institutional investors and hedge funds.
SBUX has been the subject of a number of analyst reports. MKM Partners decreased their price target on Starbucks from $130.00 to $123.00 and set a “buy” rating for the company in a research note on Wednesday. Guggenheim reduced their target price on Starbucks from $115.00 to $107.00 and set a “neutral” rating for the company in a research note on Wednesday. JPMorgan Chase & Co. reduced their price target on Starbucks from $112.00 to $101.00 and set a “neutral” rating for the company in a research note on Wednesday. Deutsche Bank Aktiengesellschaft upgraded Starbucks from a “hold” rating to a “buy” rating and set a $127.00 price target for the company in a research note on Monday, October 11th. Finally, Royal Bank of Canada reduced their price target on Starbucks from $122.00 to $108.00 and set a “sector perform” rating for the company in a research note on Wednesday. Thirteen investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $118.31.
Starbucks Company Profile
Starbucks Corp. engages in the production, marketing, and retailing of specialty coffee. It operates through the following segments: North America; International; and Channel Development. The North America and International segments sells coffee and other beverages, complementary food, packaged coffees, single-serve coffee products, and a focused selection of merchandise through company-oriented stores, and licensed stores.
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