Starbucks (NASDAQ:SBUX) Reaches New 52-Week High – Still a Buy?

Shares of Starbucks Co. (NASDAQ:SBUX) reached a new 52-week high during trading on Monday . The company traded as high as $103.21 and last traded at $102.81, with a volume of 331845 shares trading hands. The stock had previously closed at $102.50.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on SBUX shares. UBS Group lifted their target price on Starbucks from $85.00 to $95.00 and gave the company a “neutral” rating in a research report on Wednesday, October 23rd. Royal Bank of Canada started coverage on Starbucks in a research report on Friday, November 15th. They issued an “outperform” rating and a $115.00 target price on the stock. Deutsche Bank Aktiengesellschaft upgraded Starbucks from a “hold” rating to a “buy” rating and lifted their target price for the company from $85.00 to $118.00 in a research report on Wednesday, August 14th. Baird R W upgraded Starbucks from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 13th. Finally, DZ Bank cut Starbucks from a “hold” rating to a “sell” rating and set a $85.00 price target on the stock. in a report on Wednesday, August 21st. Three research analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $102.81.

Starbucks Trading Up 0.4 %

The business has a fifty day moving average of $97.11 and a 200-day moving average of $87.19. The firm has a market cap of $116.70 billion, a PE ratio of 30.97, a PEG ratio of 3.00 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.80. The business had revenue of $9.07 billion for the quarter, compared to analysts’ expectations of $9.60 billion. Starbucks had a negative return on equity of 46.39% and a net margin of 10.40%. The firm’s quarterly revenue was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.06 EPS. On average, equities analysts forecast that Starbucks Co. will post 3.12 EPS for the current year.

Starbucks Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a $0.61 dividend. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.37%. The ex-dividend date is Friday, November 15th. Starbucks’s dividend payout ratio (DPR) is currently 73.72%.

Insider Transactions at Starbucks

In other news, CFO Rachel Ruggeri sold 1,491 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $99.54, for a total value of $148,414.14. Following the completion of the transaction, the chief financial officer now owns 80,124 shares in the company, valued at $7,975,542.96. This trade represents a 1.83 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jorgen Vig Knudstorp acquired 380 shares of the stock in a transaction on Friday, September 6th. The shares were bought at an average price of $91.50 per share, with a total value 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. The trade was a 1.06 % increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 1.98% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several large investors have recently modified their holdings of the stock. Destination Wealth Management purchased a new position in Starbucks in the third quarter worth about $231,000. Wilmington Savings Fund Society FSB increased its position in shares of Starbucks by 218.1% during the third quarter. Wilmington Savings Fund Society FSB now owns 23,899 shares of the coffee company’s stock valued at $2,330,000 after acquiring an additional 16,385 shares in the last quarter. World Investment Advisors LLC raised its holdings in Starbucks by 1,941.0% in the 3rd quarter. World Investment Advisors LLC now owns 71,292 shares of the coffee company’s stock worth $6,950,000 after acquiring an additional 67,799 shares during the last quarter. Sculati Wealth Management LLC lifted its position in Starbucks by 15.1% in the 3rd quarter. Sculati Wealth Management LLC now owns 10,291 shares of the coffee company’s stock valued at $940,000 after acquiring an additional 1,350 shares in the last quarter. Finally, Fulcrum Equity Management boosted its stake in Starbucks by 38.8% during the 3rd quarter. Fulcrum Equity Management now owns 4,119 shares of the coffee company’s stock valued at $402,000 after purchasing an additional 1,151 shares during the last quarter. Hedge funds and other institutional investors 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.