On May 2nd, coffee company Starbucks (NASDAQ:SBUX) released its quarterly earnings results which exceeded analysts’ expectations and warranted positive remarks from equities research analysts at StockNews.com. In this research report, they issue a “buy” rating on the stock.
Starbucks Corp. is a company that produces, markets and sells specialty coffee around the world through various segments including North America, International, Channel Development, and Corporate and Other. The North America segment specifically focuses on the United States and Canada while their International segment targets regions such as China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and the Caribbean.
During their last quarter ending March 28th 2021, the business reported impressive figures with $8.72 billion in revenue compared to analyst predictions of $8.43 billion. Additionally, Starbucks also recorded an EPS of $0.74 which was $0.10 higher than what had been expected by analysts beforehand creating further evidence that this is a great company stock for investors to consider.
The negative return on equity of 41.99% along with net margins of 10.46% are equally important figures reflecting health status quo of any business though one should note these numbers being negative can be concerning.
With current reports indicating starbucks will post an estimated 3.44 earnings per share for the fiscal year ending September 30th , there exists even more reason for potential investors to explore capital opportunities within SBUX stock this calendar year as wonderful prospects await those wise enough to invest in this groundbreaking coffee company’s bright future!
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Starbucks’ Stocks Receive Mixed Reviews from Research Firms, with Analysts Offering Varied Price Targets and Ratings
Starbucks (NASDAQ: SBUX), a mega corporation that specializes in the production, marketing, and retailing of specialty coffee, has received mixed reviews from research firms regarding its stocks. Wells Fargo & Company raised their price objective to $125.00 from $120.00 on May 3rd as other institutions such as TD Cowen reiterated an “outperform” rating of $116.00 while Credit Suisse Group increased their price objective to $128.00 from $122.00 on May 3rd. Furthermore, Citigroup raised Starbucks’ price objective to $112.00 from $111.00 and gave it a “neutral” rating on February 6th; however, BMO Capital Markets upped the target prices for shares of Starbucks from $120.00 to $125.00 and gave it an “outperform” rating on February 15th.
As noted by Bloomberg.com data, 12 analysts currently rated Starbucks with a hold-rating whereas 13 analysts have given the award-winning company a buy-rating with an overall consensus target price of$110.31.
Presently, Starbucks opened at $105.69 per share today with a market capitalization value of approximately $121.16 billion and a P/E ratio of about 34.32 alongside its stock-for-growth ratio standing at around 1.83; similar industries have ratios slightly lower than these values.
Furthermore, Starbucks operates through four distinct segments: North America, International, Channel Development, and Corporate and Other while primarily serving the United States and Canada in North America along with various multinational corporations worldwide.
In continuation with this period’s news regarding Starbucks CFO Rachel Ruggeri as she sold643 shares worth about$77k on Tuesday, February21st at an average priceof$105 .5 Eachshare wherebyfollowingthecompletionof the sale,she now directly owns56ksharesworthapproximately$5m.Asreported by the SEC, the chief financial officer’s sale was disclosed publically and has been available for scrutiny.
Finally, several institutional investors have recently bought and sold shares of SBUX. Most notable of these investors is America First Investment Advisors LLC which purchased a new position worth$25k in Q1-2018. Other investors such as Beirne Wealth Consulting Services LLC, Cranbrook Wealth Management LLC, My Personal CFO LLC, and Piershale Financial Group Inc., all invested $25k hence owning 69.16% of Starbucks’ stock cumulatively.
Overall Starbuck’s steady growth over the years as appealed to both long-term shareholders and short-term speculators alike. Despite some criticisms, Starbucks remains a highly recommendable investment option for interested parties.
