Jefferies Financial Group Lowers Starbucks (NASDAQ:SBUX) to Underperform

Jefferies Financial Group cut shares of Starbucks (NASDAQ:SBUX) from a hold rating to an underperform rating in a report released on Tuesday morning, Marketbeat Ratings reports. Jefferies Financial Group currently has $76.00 price target on the coffee company’s stock, down from their prior price target of $80.00.

Several other equities research analysts also recently issued reports on the stock. Evercore ISI raised shares of Starbucks from an in-line rating to an outperform rating and lifted their price target for the stock from $80.00 to $120.00 in a research note on Wednesday, August 14th. Morgan Stanley reiterated an overweight rating and issued a $98.00 price target on shares of Starbucks in a research note on Wednesday, July 31st. Stifel Nicolaus upgraded Starbucks from a hold rating to a buy rating and lifted their price objective for the stock from $80.00 to $110.00 in a report on Wednesday, August 14th. Piper Sandler upgraded Starbucks from a neutral rating to an overweight rating and increased their target price for the company from $85.00 to $103.00 in a research note on Tuesday, August 13th. Finally, Robert W. Baird raised shares of Starbucks from a neutral rating to an outperform rating and upped their price target for the company from $81.00 to $110.00 in a report on Tuesday, August 13th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of Moderate Buy and an average price target of $100.52.

Starbucks Stock Performance

SBUX opened at $97.47 on Tuesday. Starbucks has a 1 year low of $71.55 and a 1 year high of $107.66. The firm has a 50 day moving average price of $87.91 and a 200 day moving average price of $84.13. The company has a market cap of $110.45 billion, a PE ratio of 26.85, a price-to-earnings-growth ratio of 2.29 and a beta of 0.96.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share for the quarter, meeting the consensus estimate of $0.93. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The business had revenue of $9.11 billion for the quarter, compared to analyst estimates of $9.25 billion. During the same quarter in the previous year, the business posted $1.00 EPS. The business’s quarterly revenue was down .6% on a year-over-year basis. On average, sell-side analysts predict that Starbucks will post 3.56 earnings per share for the current year.

Insider Transactions at Starbucks

In related news, Director Jorgen Vig Knudstorp purchased 380 shares of the firm’s stock in a transaction on Friday, September 6th. The shares were bought at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the transaction, the director now directly owns 36,242 shares of the company’s stock, valued at approximately $3,316,143. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction dated Thursday, August 15th. The shares were sold at an average price of $94.03, for a total value of $305,597.50. Following the completion of the transaction, the chief executive officer now owns 75,054 shares of the company’s stock, valued at $7,057,327.62. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jorgen Vig Knudstorp purchased 380 shares of the stock in a transaction on Friday, September 6th. The stock was bought at an average price of $91.50 per share, for a total transaction of $34,770.00. Following the completion of the transaction, the director now directly owns 36,242 shares of the company’s stock, valued at $3,316,143. The disclosure for this purchase can be found here. 1.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Starbucks

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Ontario Teachers Pension Plan Board acquired a new stake in shares of Starbucks during the 1st quarter worth approximately $415,167,000. Marshall Wace LLP raised its position in shares of Starbucks by 1,466.3% during the 2nd quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock valued at $260,870,000 after acquiring an additional 3,136,992 shares during the last quarter. Diamond Hill Capital Management Inc. bought a new stake in shares of Starbucks during the 2nd quarter valued at $243,910,000. Flossbach Von Storch AG boosted its position in shares of Starbucks by 106.7% in the 1st quarter. Flossbach Von Storch AG now owns 5,612,687 shares of the coffee company’s stock worth $512,943,000 after purchasing an additional 2,897,282 shares during the last quarter. Finally, Capital World Investors bought a new position in shares of Starbucks in the 1st quarter worth $257,721,000. Institutional investors and hedge funds 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.