Starbucks Corporation (SBUX) Raised to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Starbucks Corporation (NASDAQ:SBUX) from a sell rating to a hold rating in a research note issued to investors on Thursday morning.

According to Zacks, “Starbucks’s operating fundamentals such as solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings remain strong. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also lead to value creation. These initiatives might benefit the company in the long run. However, the consequential increment in spending is likely to create pressure on its bottom line in the near term. Also, economic, geopolitical and consumer headwinds continue to impact Starbucks' results. Meanwhile, the company’s shares have underperformed the industry so far this year.”

Several other research analysts also recently weighed in on the stock. BMO Capital Markets restated a hold rating on shares of Starbucks Corporation in a research report on Thursday. Morgan Stanley restated an overweight rating and set a $62.00 price target on shares of Starbucks Corporation in a research report on Wednesday. Stifel Nicolaus began coverage on shares of Starbucks Corporation in a research report on Tuesday, October 3rd. They set a hold rating and a $58.00 price target for the company. Mizuho restated a buy rating and set a $75.00 price target on shares of Starbucks Corporation in a research report on Friday, September 29th. Finally, Stephens restated an equal weight rating and set a $52.00 price target (down previously from $58.00) on shares of Starbucks Corporation in a research report on Friday, September 29th. They noted that the move was a valuation call. Thirteen equities research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and two have given a strong buy rating to the company. The stock has a consensus rating of Buy and a consensus target price of $64.34.

Shares of Starbucks Corporation (SBUX) traded up 1.04% during midday trading on Thursday, hitting $55.17. The stock had a trading volume of 10,576,278 shares. The stock has a market cap of $79.66 billion, a PE ratio of 27.85 and a beta of 0.78. The firm has a 50 day moving average price of $54.35 and a 200-day moving average price of $57.75. Starbucks Corporation has a 52-week low of $50.84 and a 52-week high of $64.87.

Starbucks Corporation (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, July 27th. The coffee company reported $0.55 earnings per share for the quarter, hitting the consensus estimate of $0.55. Starbucks Corporation had a net margin of 12.93% and a return on equity of 52.82%. The firm had revenue of $5.66 billion during the quarter, compared to the consensus estimate of $5.76 billion. During the same quarter in the prior year, the firm earned $0.49 EPS. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. Equities analysts predict that Starbucks Corporation will post $2.06 EPS for the current fiscal year.

TRADEMARK VIOLATION WARNING: “Starbucks Corporation (SBUX) Raised to “Hold” at Zacks Investment Research” was reported by The Ledger Gazette and is the sole property of of The Ledger Gazette. If you are viewing this article on another publication, it was illegally stolen and reposted in violation of US and international copyright and trademark law. The legal version of this article can be read at https://ledgergazette.com/2017/10/08/starbucks-corporation-sbux-raised-to-hold-at-zacks-investment-research.html.

In other Starbucks Corporation news, Director Jorgen Vig Knudstorp purchased 18,000 shares of the firm’s stock in a transaction on Friday, August 4th. The stock was bought at an average price of $55.30 per share, with a total value of $995,400.00. Following the transaction, the director now directly owns 18,000 shares of the company’s stock, valued at approximately $995,400. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Myron E. Ullman III sold 22,966 shares of the firm’s stock in a transaction that occurred on Thursday, September 7th. The shares were sold at an average price of $53.41, for a total transaction of $1,226,614.06. Following the completion of the transaction, the director now directly owns 36,966 shares of the company’s stock, valued at approximately $1,974,354.06. The disclosure for this sale can be found here. Company insiders own 3.40% of the company’s stock.

A number of hedge funds have recently modified their holdings of SBUX. CGOV Asset Management boosted its position in Starbucks Corporation by 5.1% in the 1st quarter. CGOV Asset Management now owns 1,143,123 shares of the coffee company’s stock valued at $88,920,000 after buying an additional 55,405 shares during the period. Waldron LP boosted its position in Starbucks Corporation by 44.8% in the 1st quarter. Waldron LP now owns 18,119 shares of the coffee company’s stock valued at $1,057,000 after buying an additional 5,604 shares during the period. Whittier Trust Co. boosted its position in Starbucks Corporation by 3.0% in the 1st quarter. Whittier Trust Co. now owns 316,151 shares of the coffee company’s stock valued at $18,456,000 after buying an additional 9,251 shares during the period. Wesbanco Bank Inc. boosted its position in Starbucks Corporation by 334.2% in the 1st quarter. Wesbanco Bank Inc. now owns 94,045 shares of the coffee company’s stock valued at $5,492,000 after buying an additional 72,385 shares during the period. Finally, Callahan Advisors LLC purchased a new position in Starbucks Corporation in the 1st quarter valued at approximately $203,000. 70.83% of the stock is owned by institutional investors.

About Starbucks Corporation

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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According to Zacks, “Starbucks’s operating fundamentals such as solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings remain strong. Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also lead to value creation. These initiatives might benefit the company in the long run. However, the consequential increment in spending is likely to create pressure on its bottom line in the near term. Also, economic, geopolitical and consumer headwinds continue to impact Starbucks' results. Meanwhile, the company’s shares have underperformed the industry so far this year.”

Several other research analysts also recently weighed in on the stock. BMO Capital Markets restated a hold rating on shares of Starbucks Corporation in a research report on Thursday. Morgan Stanley restated an overweight rating and set a $62.00 price target on shares of Starbucks Corporation in a research report on Wednesday. Stifel Nicolaus began coverage on shares of Starbucks Corporation in a research report on Tuesday, October 3rd. They set a hold rating and a $58.00 price target for the company. Mizuho restated a buy rating and set a $75.00 price target on shares of Starbucks Corporation in a research report on Friday, September 29th. Finally, Stephens restated an equal weight rating and set a $52.00 price target (down previously from $58.00) on shares of Starbucks Corporation in a research report on Friday, September 29th. They noted that the move was a valuation call. Thirteen equities research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and two have given a strong buy rating to the company. The stock has a consensus rating of Buy and a consensus target price of $64.34.

Shares of Starbucks Corporation (SBUX) traded up 1.04% during midday trading on Thursday, hitting $55.17. The stock had a trading volume of 10,576,278 shares. The stock has a market cap of $79.66 billion, a PE ratio of 27.85 and a beta of 0.78. The firm has a 50 day moving average price of $54.35 and a 200-day moving average price of $57.75. Starbucks Corporation has a 52-week low of $50.84 and a 52-week high of $64.87.

Starbucks Corporation (NASDAQ:SBUX) last released its quarterly earnings results on Thursday, July 27th. The coffee company reported $0.55 earnings per share for the quarter, hitting the consensus estimate of $0.55. Starbucks Corporation had a net margin of 12.93% and a return on equity of 52.82%. The firm had revenue of $5.66 billion during the quarter, compared to the consensus estimate of $5.76 billion. During the same quarter in the prior year, the firm earned $0.49 EPS. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. Equities analysts predict that Starbucks Corporation will post $2.06 EPS for the current fiscal year.

TRADEMARK VIOLATION WARNING: “Starbucks Corporation (SBUX) Raised to “Hold” at Zacks Investment Research” was reported by The Ledger Gazette and is the sole property of of The Ledger Gazette. If you are viewing this article on another publication, it was illegally stolen and reposted in violation of US and international copyright and trademark law. The legal version of this article can be read at https://ledgergazette.com/2017/10/08/starbucks-corporation-sbux-raised-to-hold-at-zacks-investment-research.html.

In other Starbucks Corporation news, Director Jorgen Vig Knudstorp purchased 18,000 shares of the firm’s stock in a transaction on Friday, August 4th. The stock was bought at an average price of $55.30 per share, with a total value of $995,400.00. Following the transaction, the director now directly owns 18,000 shares of the company’s stock, valued at approximately $995,400. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Myron E. Ullman III sold 22,966 shares of the firm’s stock in a transaction that occurred on Thursday, September 7th. The shares were sold at an average price of $53.41, for a total transaction of $1,226,614.06. Following the completion of the transaction, the director now directly owns 36,966 shares of the company’s stock, valued at approximately $1,974,354.06. The disclosure for this sale can be found here. Company insiders own 3.40% of the company’s stock.

A number of hedge funds have recently modified their holdings of SBUX. CGOV Asset Management boosted its position in Starbucks Corporation by 5.1% in the 1st quarter. CGOV Asset Management now owns 1,143,123 shares of the coffee company’s stock valued at $88,920,000 after buying an additional 55,405 shares during the period. Waldron LP boosted its position in Starbucks Corporation by 44.8% in the 1st quarter. Waldron LP now owns 18,119 shares of the coffee company’s stock valued at $1,057,000 after buying an additional 5,604 shares during the period. Whittier Trust Co. boosted its position in Starbucks Corporation by 3.0% in the 1st quarter. Whittier Trust Co. now owns 316,151 shares of the coffee company’s stock valued at $18,456,000 after buying an additional 9,251 shares during the period. Wesbanco Bank Inc. boosted its position in Starbucks Corporation by 334.2% in the 1st quarter. Wesbanco Bank Inc. now owns 94,045 shares of the coffee company’s stock valued at $5,492,000 after buying an additional 72,385 shares during the period. Finally, Callahan Advisors LLC purchased a new position in Starbucks Corporation in the 1st quarter valued at approximately $203,000. 70.83% of the stock is owned by institutional investors.

About Starbucks Corporation

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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