Wells Fargo & Company Forecasts Strong Price Appreciation for Starbucks (NASDAQ:SBUX) Stock

Starbucks (NASDAQ:SBUX) had its target price raised by equities research analysts at Wells Fargo & Company from $110.00 to $115.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has an “overweight” rating on the coffee company’s stock. Wells Fargo & Company‘s target price would suggest a potential upside of 12.92% from the company’s previous close.

A number of other brokerages have also weighed in on SBUX. BTIG Research upped their price objective on Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. Deutsche Bank Aktiengesellschaft raised shares of Starbucks from a “hold” rating to a “buy” rating and upped their price target for the stock from $85.00 to $118.00 in a research note on Wednesday, August 14th. Royal Bank of Canada started coverage on shares of Starbucks in a research note on Friday, November 15th. They issued an “outperform” rating and a $115.00 price objective for the company. Bank of America dropped their target price on shares of Starbucks from $118.00 to $117.00 and set a “buy” rating for the company in a report on Tuesday, October 22nd. Finally, Oppenheimer restated a “market perform” rating on shares of Starbucks in a report on Monday, August 26th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $103.77.

Starbucks Stock Performance

Shares of SBUX opened at $101.84 on Tuesday. The stock has a market capitalization of $115.47 billion, a P/E ratio of 30.77, a P/E/G ratio of 3.00 and a beta of 0.97. Starbucks has a 1 year low of $71.55 and a 1 year high of $103.32. The company’s fifty day moving average is $97.22 and its two-hundred day moving average is $87.38.

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

Insider Transactions at Starbucks

In other news, CFO Rachel Ruggeri sold 1,491 shares of Starbucks stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $99.54, for a total transaction of $148,414.14. Following the sale, the chief financial officer now directly owns 80,124 shares of the company’s stock, valued at approximately $7,975,542.96. The trade was a 1.83 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jorgen Vig Knudstorp purchased 380 shares of Starbucks stock in a transaction that occurred on Friday, September 6th. The stock was acquired at an average cost of $91.50 per share, with a total value of $34,770.00. Following the acquisition, 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.

Institutional Trading of Starbucks

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Strategic Investment Solutions Inc. IL bought a new stake in shares of Starbucks in the 2nd quarter worth about $25,000. New Millennium Group LLC bought a new stake in Starbucks in the second quarter valued at about $26,000. Stephens Consulting LLC raised its stake in Starbucks by 498.2% during the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock valued at $26,000 after buying an additional 279 shares in the last quarter. Hobbs Group Advisors LLC acquired a new position in shares of Starbucks in the 2nd quarter worth approximately $27,000. Finally, MFA Wealth Advisors LLC bought a new stake in shares of Starbucks in the 2nd quarter valued at approximately $31,000. Institutional investors own 72.29% of the company’s stock.

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.