Starbucks Co. (NASDAQ:SBUX) – Investment analysts at William Blair boosted their Q2 2019 earnings per share (EPS) estimates for shares of Starbucks in a research report issued on Monday, April 22nd. William Blair analyst S. Zackfia now anticipates that the coffee company will post earnings of $0.54 per share for the quarter, up from their prior forecast of $0.53. William Blair also issued estimates for Starbucks’ FY2019 earnings at $2.72 EPS.
Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, April 25th. The coffee company reported $0.60 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.04. The business had revenue of $6.31 billion during the quarter, compared to analyst estimates of $6.33 billion. Starbucks had a return on equity of 193.00% and a net margin of 11.98%. Starbucks’s quarterly revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.53 EPS.
Other equities research analysts have also issued reports about the company. Piper Jaffray Companies increased their price target on Starbucks from $60.00 to $70.00 and gave the company a “neutral” rating in a research report on Wednesday, April 10th. Bank of America set a $85.00 price target on Starbucks and gave the company a “buy” rating in a research report on Friday. Barclays increased their price target on Starbucks from $69.00 to $75.00 and gave the company an “equal weight” rating in a research report on Friday. Stephens increased their price target on Starbucks from $65.00 to $72.00 and gave the company an “in-line” rating in a research report on Friday. Finally, Wells Fargo & Co lowered Starbucks from an “outperform” rating to a “market perform” rating and lowered their price target for the company from $83.00 to $80.00 in a research report on Friday. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and sixteen have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $72.65.
NASDAQ SBUX opened at $77.45 on Thursday. The firm has a market capitalization of $95.00 billion, a P/E ratio of 32.00, a P/E/G ratio of 2.17 and a beta of 0.51. Starbucks has a 12 month low of $47.37 and a 12 month high of $77.52. The company has a quick ratio of 1.16, a current ratio of 1.41 and a debt-to-equity ratio of 7.73.
The firm also recently announced a quarterly dividend, which will be paid on Friday, May 24th. Stockholders of record on Thursday, May 9th will be given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 1.86%. Starbucks’s dividend payout ratio is presently 59.50%.
In other news, insider Clifford Burrows sold 152,634 shares of the firm’s stock in a transaction on Tuesday, January 29th. The stock was sold at an average price of $67.22, for a total transaction of $10,260,057.48. Following the completion of the sale, the insider now directly owns 311,083 shares of the company’s stock, valued at approximately $20,910,999.26. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider John Culver sold 169,096 shares of the firm’s stock in a transaction on Thursday, February 7th. The shares were sold at an average price of $68.81, for a total value of $11,635,495.76. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 565,806 shares of company stock valued at $38,789,988. Insiders own 3.98% of the company’s stock.
Several institutional investors have recently made changes to their positions in the company. Paragon Capital Management LLC purchased a new stake in Starbucks in the 1st quarter worth about $29,000. Lake Point Wealth Management purchased a new stake in Starbucks in the 4th quarter worth about $25,000. Veritas Investment Management LLP purchased a new stake in Starbucks in the 4th quarter worth about $28,000. C J Advisory Inc purchased a new stake in Starbucks in the 1st quarter worth about $34,000. Finally, Highwater Wealth Management LLC purchased a new stake in Starbucks in the 4th quarter worth about $28,000. 73.44% of the stock is owned by hedge funds and other institutional investors.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.