Starbucks (NASDAQ:SBUX) Downgraded by TD Cowen to Market Perform

Starbucks (NASDAQ:SBUX) was downgraded by research analysts at TD Cowen from an “outperform” rating to a “market perform” rating in a research note issued to investors on Tuesday, FinViz reports. They presently have a $107.00 price target on the coffee company’s stock, down from their prior price target of $117.00. TD Cowen’s price target would indicate a potential upside of 10.58% from the company’s previous close.

Other analysts also recently issued research reports about the company. Stifel Nicolaus decreased their price target on Starbucks from $117.00 to $110.00 and set a “hold” rating for the company in a research note on Wednesday, August 2nd. Stephens reiterated an “equal weight” rating and set a $110.00 price target on shares of Starbucks in a report on Wednesday, August 2nd. Wedbush dropped their price target on shares of Starbucks from $112.00 to $105.00 in a research report on Wednesday, August 2nd. Wells Fargo & Company decreased their price objective on shares of Starbucks from $125.00 to $120.00 and set an “overweight” rating for the company in a report on Wednesday, July 19th. Finally, Morgan Stanley reiterated an “equal weight” rating and issued a $104.00 target price on shares of Starbucks in a report on Wednesday, August 2nd. Ten equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. According to MarketBeat.com, Starbucks currently has a consensus rating of “Moderate Buy” and an average target price of $114.76.

Starbucks Stock Performance

NASDAQ:SBUX opened at $96.76 on Tuesday. The company has a market capitalization of $110.83 billion, a P/E ratio of 29.50, a P/E/G ratio of 1.69 and a beta of 0.93. The stock’s 50 day moving average price is $99.19 and its 200 day moving average price is $101.43. Starbucks has a 52 week low of $82.43 and a 52 week high of $115.48.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, August 1st. The coffee company reported $1.00 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.05. Starbucks had a net margin of 10.81% and a negative return on equity of 44.46%. The business had revenue of $9.17 billion for the quarter, compared to the consensus estimate of $9.29 billion. During the same quarter last year, the firm earned $0.84 EPS. Starbucks’s revenue for the quarter was up 12.5% on a year-over-year basis. As a group, sell-side analysts forecast that Starbucks will post 3.45 earnings per share for the current fiscal year.

Insider Activity

In other Starbucks news, CFO Rachel Ruggeri sold 679 shares of the business’s stock in a transaction on Wednesday, June 21st. The stock was sold at an average price of $100.60, for a total value of $68,307.40. Following the transaction, the chief financial officer now owns 54,761 shares of the company’s stock, valued at $5,508,956.60. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Starbucks

A number of large investors have recently modified their holdings of the stock. Quilter Plc bought a new position in Starbucks in the 1st quarter valued at $208,530,000. America First Investment Advisors LLC bought a new position in Starbucks in the first quarter valued at about $25,000. Cranbrook Wealth Management LLC acquired a new stake in Starbucks in the first quarter worth about $26,000. Freedom Wealth Alliance LLC bought a new stake in Starbucks during the 4th quarter worth about $26,000. Finally, Princeton Global Asset Management LLC acquired a new position in Starbucks during the 1st quarter valued at about $29,000. 70.13% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty 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.