On September 19, 2023, Starbucks (NASDAQ:SBUX) received a downgrade from research analysts at TD Cowen, moving from an “outperform” rating to a “market perform” rating. The report was issued to investors on Tuesday, according to FinViz. TD Cowen also adjusted their price target for the coffee company’s stock from $117.00 to $107.00. Even with this revision, TD Cowen’s target price still indicates a potential upside of 10.58% from the previous close.
The day began with Starbucks’ stock opening at $96.76. Looking at its performance throughout the last couple of months, Starbucks has shown a 50-day simple moving average of $99.19 and a 200-day simple moving average of $101.43. Over the past year, Starbucks experienced a low of $82.43 and reached a high of $115.48 in terms of stock value.
With regards to its market capitalization, Starbucks currently stands at $110.83 billion and possesses a PE ratio of 29.50, reflecting the market’s confidence in the company’s future earnings potential based on current stock price levels. Additionally, Starbucks carries a price-to-earnings-growth ratio of 1.69 and a beta of 0.93.
In terms of investors’ positions in the company, some notable changes have taken place recently among large investors involved with Starbucks’s stocks:
– Bank Julius Baer & Co Ltd Zurich saw an astronomical increase of around 80,389% in its holdings during the second quarter.
– Norges Bank entered as a new stakeholder by acquiring shares valued at approximately $1,222,931 during the fourth quarter.
– Moneta Group Investment Advisors LLC significantly increased its position in Starbucks by over 115,000%, accumulating millions more shares.
– Morgan Stanley also boosted its holding by 46.3% during the fourth quarter.
– BlackRock Inc. witnessed a 4.5% growth in its holdings during the second quarter.
These changes demonstrate the active involvement of these large investors in Starbucks and their belief in its long-term potential.
On August 1st, Starbucks disclosed its quarterly earnings data, which exceeded analysts’ expectations. The company reported earnings per share (EPS) of $1.00 for the quarter, surpassing the consensus estimate by $0.05. This impressive performance led to a net margin of 10.81% and a negative return on equity of 44.46%. Despite missing estimates on revenue with $9.17 billion instead of the anticipated $9.29 billion, Starbucks still achieved significant year-over-year growth with a 12.5% increase in quarterly revenue compared to the same period last year.
Equities research analysts anticipate that Starbucks will post an EPS of 3.45 for the entire current year based on recent trends and market outlook.
While TD Cowen’s downgrade may have had an impact on Starbucks’ stock rating and price target, it remains to be seen how this adjustment will affect investors’ perceptions and future trading activity in relation to one of the world’s most prominent coffee companies.
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Mixed Analyst Reviews and Insider Selling: Assessing Starbucks Corporation’s Outlook
September 19, 2023
Starbucks Receives Mixed Reviews from Analysts as CFO Sells Shares
In recent news, several brokerages have released their reports on Starbucks Corporation (NASDAQ: SBUX). StockNews.com initiated coverage on the company and gave it a “buy” rating in their research note published on August 17th. This positive outlook was echoed by Bank of America, who raised their price target to $150.00 and maintained a “buy” rating in July.
However, not all analysts share the same sentiment. Stephens reiterated an “equal weight” rating and issued a $110.00 price objective for Starbucks in their research report dated August 2nd. Morgan Stanley also restated an “equal weight” rating with a target price of $104.00 on the same day. Wedbush took a more cautious approach by reducing their price objective from $112.00 to $105.00 in their research note published on August 2nd.
Currently, there are a total of ten analysts who have given a hold rating while eleven analysts have issued a buy rating for Starbucks. According to data from Bloomberg.com, the stock has an average rating of “Moderate Buy”, with an average price target of $114.76.
Meanwhile, CFO Rachel Ruggeri made headlines when she sold 679 shares of Starbucks stock on June 21st at an average price of $100.60 per share, totaling $68,307.40 in value. After the transaction, Ruggeri now holds 54,761 shares worth approximately $5,508,956.60 directly.
This disclosure was made in accordance with filing requirements set by the Securities & Exchange Commission and can be accessed through the provided hyperlink. It is notable to mention that insiders currently own approximately 1.98% of Starbucks’ stock.
As investors navigate through these mixed reviews and recent insider transactions involving Starbucks Corporation, it is essential to conduct thorough research and analysis before making any investment decisions. The market’s perplexity surrounding the stock’s outlook emphasizes the importance of a robust investment strategy aligned with one’s financial goals and risk tolerance.
Although Starbucks remains a global leader in the coffee industry, investors should consider all available information and consult with their financial advisors before taking any actions.