Royal Bank of Canada Begins Coverage on Starbucks (NASDAQ:SBUX)

Royal Bank of Canada assumed coverage on shares of Starbucks (NASDAQ:SBUX) in a research note published on Friday morning, Marketbeat reports. The firm issued an outperform rating and a $115.00 target price on the coffee company’s stock.

A number of other equities analysts also recently commented on SBUX. Wedbush decreased their target price on Starbucks from $98.00 to $95.00 and set a “neutral” rating for the company in a report on Thursday, October 31st. Stifel Nicolaus lifted their target price on shares of Starbucks from $105.00 to $110.00 and gave the company a “buy” rating in a research note on Thursday, October 31st. Baird R W upgraded shares of Starbucks from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 13th. JPMorgan Chase & Co. upped their target price on Starbucks from $90.00 to $105.00 and gave the stock an “overweight” rating in a report on Monday, September 30th. Finally, UBS Group raised their target price on Starbucks from $85.00 to $95.00 and gave the company a “neutral” rating in a research note on Wednesday, October 23rd. Three research analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $102.81.

Starbucks Stock Performance

SBUX stock opened at $100.40 on Friday. The firm has a market cap of $113.77 billion, a P/E ratio of 30.33, a P/E/G ratio of 2.85 and a beta of 0.97. The firm’s fifty day moving average is $96.91 and its 200 day moving average is $86.44. Starbucks has a 52 week low of $71.55 and a 52 week high of $105.47.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, meeting the consensus estimate of $0.80. Starbucks had a negative return on equity of 46.39% and a net margin of 10.40%. The company had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.60 billion. During the same period in the prior year, the business posted $1.06 EPS. Starbucks’s quarterly revenue was down 3.2% compared to the same quarter last year. As a group, analysts forecast that Starbucks will post 3.15 EPS for the current year.

Starbucks Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.43%. This is a boost from Starbucks’s previous quarterly dividend of $0.57. The ex-dividend date of this dividend is Friday, November 15th. Starbucks’s dividend payout ratio is 68.88%.

Insider Buying and Selling

In related news, Director Jorgen Vig Knudstorp purchased 380 shares of the company’s stock in a transaction on Friday, September 6th. The stock was acquired at an average cost 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 in the company, valued at approximately $3,316,143. The trade was a 1.06 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Rachel Ruggeri sold 1,452 shares of the firm’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $99.07, for a total value of $143,849.64. Following the transaction, the chief financial officer now owns 65,648 shares of the company’s stock, valued at approximately $6,503,747.36. This represents a 2.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Starbucks

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SBUX. Strategic Investment Solutions Inc. IL purchased a new position in Starbucks in the second quarter valued at $25,000. New Millennium Group LLC acquired a new stake in shares of Starbucks during the 2nd quarter worth about $26,000. Stephens Consulting LLC lifted its stake in Starbucks by 498.2% during the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after purchasing an additional 279 shares during the last quarter. Hobbs Group Advisors LLC acquired a new position in Starbucks in the second quarter valued at approximately $27,000. Finally, Olistico Wealth LLC purchased a new position in Starbucks in the second quarter valued at approximately $31,000. Hedge funds and other institutional investors 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.