Starbucks (NASDAQ:SBUX) Trading Up 1.6% on Analyst Upgrade

Starbucks Co. (NASDAQ:SBUX) shares were up 1.6% during 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 trading, a decline of 75% from the average daily volume of 11,858,657 shares. The stock had previously closed at $96.12.

SBUX has been the subject of a number of other reports. Piper Sandler upgraded Starbucks from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $85.00 to $103.00 in a report on Tuesday, August 13th. Barclays boosted their target price on shares of Starbucks from $93.00 to $110.00 and gave the company an “overweight” rating in a research report on Wednesday, August 14th. Evercore ISI raised shares of Starbucks from an “in-line” rating to an “outperform” rating and increased their target price for the stock from $80.00 to $120.00 in a research note on Wednesday, August 14th. The Goldman Sachs Group began coverage on shares of Starbucks in a report on Thursday, June 13th. They set a “buy” rating and a $100.00 price objective on the stock. Finally, TD Cowen reissued a “buy” rating and set a $110.00 price objective on shares of Starbucks in a research report on Thursday, September 12th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $100.08.

Insiders Place Their Bets

In related news, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction on 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 $7,057,327.62. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Starbucks news, CEO Rachel Ruggeri sold 3,290 shares of the stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total transaction of $299,916.40. Following the completion of the transaction, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at $5,697,682.32. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $94.03, for a total value of $305,597.50. Following the completion of the sale, the chief executive officer now owns 75,054 shares in the company, valued at $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 added to or reduced their stakes in the company. Ontario Teachers Pension Plan Board purchased a new position in shares of Starbucks in the first quarter valued at $415,167,000. Marshall Wace LLP grew its holdings in Starbucks by 1,466.3% during the 2nd quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock valued at $260,870,000 after buying an additional 3,136,992 shares in the last quarter. Diamond Hill Capital Management Inc. bought a new stake in shares of Starbucks during the second quarter valued at about $243,910,000. Flossbach Von Storch AG lifted its holdings in shares of Starbucks by 106.7% in the first quarter. Flossbach Von Storch AG now owns 5,612,687 shares of the coffee company’s stock worth $512,943,000 after buying an additional 2,897,282 shares in the last quarter. Finally, Capital World Investors bought a new position in shares of Starbucks in the first quarter valued at approximately $257,721,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Price Performance

The company has a market cap of $108.84 billion, a PE ratio of 26.46, a PEG ratio of 2.31 and a beta of 0.96. The firm’s 50 day moving average is $86.67 and its 200 day moving average is $84.09.

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