Posted by Defense World Staff on May 3rd, 2024
Starbucks Co. (NASDAQ:SBUX – Get Free Report) reached a new 52-week low during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $74.50 and last traded at $75.11, with a volume of 15234842 shares. The stock had previously closed at $88.49.
The coffee company reported $0.68 EPS for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.11). Starbucks had a negative return on equity of 50.10% and a net margin of 11.38%. The firm had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. During the same period in the prior year, the business earned $0.74 EPS. The company’s quarterly revenue was down 1.8% on a year-over-year basis.
Starbucks Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be paid a dividend of $0.57 per share. The ex-dividend date is Thursday, May 16th. This represents a $2.28 annualized dividend and a yield of 3.04%. Starbucks’s payout ratio is 62.81%.
Wall Street Analyst Weigh In
SBUX has been the subject of a number of recent research reports. Barclays lowered their price objective on shares of Starbucks from $116.00 to $112.00 and set an “overweight” rating for the company in a research report on Wednesday, January 31st. Oppenheimer reaffirmed a “market perform” rating on shares of Starbucks in a report on Friday, April 19th. Guggenheim cut their price target on Starbucks from $100.00 to $91.00 and set a “buy” rating on the stock in a report on Friday, April 19th. William Blair downgraded Starbucks from an “outperform” rating to a “market perform” rating in a research note on Wednesday. Finally, Gordon Haskett cut Starbucks from a “buy” rating to a “hold” rating and set a $100.00 target price on the stock. in a research note on Tuesday, January 16th. Sixteen equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $100.39.
View Our Latest Report on Starbucks
Insider Buying and Selling at Starbucks
In related news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction that occurred on Monday, April 15th. The shares were sold at an average price of $85.39, for a total transaction of $277,517.50. Following the completion of the sale, the chief executive officer now directly owns 81,199 shares in the company, valued at $6,933,582.61. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In the last three months, insiders sold 7,250 shares of company stock valued at $651,738. 1.98% of the stock is owned by insiders.
Institutional Investors Weigh In On Starbucks
Hedge funds have recently modified their holdings of the stock. Vima LLC purchased a new stake in Starbucks during the fourth quarter valued at about $26,000. Scarborough Advisors LLC purchased a new stake in shares of Starbucks in the 4th quarter valued at approximately $26,000. DSM Capital Partners LLC acquired a new position in Starbucks in the 4th quarter worth approximately $27,000. Riggs Asset Managment Co. Inc. grew its position in Starbucks by 1,578.9% during the 3rd quarter. Riggs Asset Managment Co. Inc. now owns 319 shares of the coffee company’s stock worth $29,000 after purchasing an additional 300 shares in the last quarter. Finally, Fairman Group LLC acquired a new stake in Starbucks during the 4th quarter valued at $30,000. 72.29% of the stock is owned by hedge funds and other institutional investors.
Starbucks Price Performance
The company has a market cap of $84.84 billion, a PE ratio of 20.64, a price-to-earnings-growth ratio of 1.49 and a beta of 0.97. The stock has a fifty day moving average price of $89.34 and a 200-day moving average price of $93.98.
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.
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