Starbucks (NASDAQ:SBUX) Reaches New 52-Week High After Earnings Beat

Starbucks Co. (NASDAQ:SBUXGet Free Report) hit a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $107.23 and last traded at $105.15, with a volume of 6902833 shares traded. The stock had previously closed at $100.41.

The coffee company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.68 by $0.01. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. During the same period in the prior year, the firm earned $0.90 EPS.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 28th. Stockholders of record on Friday, February 14th will be given a $0.61 dividend. The ex-dividend date of this dividend is Friday, February 14th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.24%. Starbucks’s payout ratio is 78.71%.

Analysts Set New Price Targets

A number of research firms have commented on SBUX. Wells Fargo & Company raised their price objective on Starbucks from $110.00 to $115.00 and gave the stock an “overweight” rating in a research note on Tuesday, November 26th. Redburn Atlantic restated a “sell” rating and issued a $77.00 price target (down previously from $84.00) on shares of Starbucks in a research report on Wednesday, November 13th. Wedbush upped their price objective on shares of Starbucks from $95.00 to $100.00 and gave the stock a “neutral” rating in a research report on Wednesday. Citigroup raised their target price on shares of Starbucks from $96.00 to $99.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Finally, UBS Group upped their price target on shares of Starbucks from $98.00 to $105.00 and gave the stock a “neutral” rating in a report on Wednesday. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $105.52.

Get Our Latest Research Report on Starbucks

Insider Buying and Selling at Starbucks

In other news, CFO Rachel Ruggeri sold 1,491 shares of the company’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $99.54, for a total value of $148,414.14. Following the sale, the chief financial officer now directly owns 80,124 shares of the company’s stock, valued at approximately $7,975,542.96. This represents a 1.83 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 1.98% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Financial Life Planners bought a new stake in shares of Starbucks during the 4th quarter valued at about $25,000. Collier Financial bought a new position in shares of Starbucks during the 4th quarter worth approximately $27,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Starbucks during the 2nd quarter worth approximately $25,000. DT Investment Partners LLC increased its stake in shares of Starbucks by 39.4% in the 3rd quarter. DT Investment Partners LLC now owns 428 shares of the coffee company’s stock valued at $42,000 after acquiring an additional 121 shares in the last quarter. Finally, FSA Wealth Management LLC acquired a new position in shares of Starbucks during the 3rd quarter valued at $49,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Trading Up 0.4 %

The company has a market cap of $123.82 billion, a price-to-earnings ratio of 32.93, a P/E/G ratio of 2.91 and a beta of 0.99. The stock’s 50-day moving average is $95.90 and its 200-day moving average is $93.00.

About Starbucks

(Get Free Report)

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.

Further Reading

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