Starbucks (NASDAQ:SBUX) Sets New 12-Month High After Better-Than-Expected Earnings

Starbucks Co. (NASDAQ:SBUX)’s stock price reached a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $107.23 and last traded at $105.15, with a volume of 6902833 shares changing hands. The stock had previously closed at $100.41.

The coffee company reported $0.69 earnings per share (EPS) for the quarter, topping 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 quarter in the previous year, the company earned $0.90 earnings per share.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, February 14th will be given a $0.61 dividend. This represents a $2.44 annualized dividend and a yield of 2.31%. The ex-dividend date is Friday, February 14th. Starbucks’s payout ratio is 73.72%.

Analyst Ratings Changes

SBUX has been the subject of a number of research analyst reports. 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. Citigroup lifted their price objective on Starbucks from $96.00 to $99.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Royal Bank of Canada reiterated an “outperform” rating and set a $115.00 target price on shares of Starbucks in a report on Friday, January 24th. Bank of America decreased their price objective on Starbucks from $118.00 to $117.00 and set a “buy” rating on the stock in a research note on Tuesday, October 22nd. Finally, Barclays boosted their price target on Starbucks from $119.00 to $124.00 and gave the company an “overweight” rating in a research report on Wednesday. Three analysts have rated the stock with a sell rating, seven have given a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $105.32.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Starbucks

Large investors have recently modified their holdings of the business. Aspire Capital Advisors LLC grew its position in Starbucks by 0.5% during the 4th quarter. Aspire Capital Advisors LLC now owns 23,210 shares of the coffee company’s stock worth $2,118,000 after acquiring an additional 104 shares during the last quarter. Riverview Trust Co grew its position in shares of Starbucks by 3.4% in the 3rd quarter. Riverview Trust Co now owns 3,199 shares of the coffee company’s stock valued at $312,000 after buying an additional 105 shares during the last quarter. Optas LLC raised its position in shares of Starbucks by 0.6% during the fourth quarter. Optas LLC now owns 16,711 shares of the coffee company’s stock worth $1,525,000 after acquiring an additional 105 shares during the last quarter. Boomfish Wealth Group LLC lifted its stake in shares of Starbucks by 0.7% in the fourth quarter. Boomfish Wealth Group LLC now owns 15,335 shares of the coffee company’s stock worth $1,399,000 after acquiring an additional 108 shares during the period. Finally, Foster Group Inc. increased its position in Starbucks by 4.0% during the 4th quarter. Foster Group Inc. now owns 2,885 shares of the coffee company’s stock valued at $263,000 after purchasing an additional 110 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Stock Performance

The stock has a market cap of $119.92 billion, a P/E ratio of 32.03, a price-to-earnings-growth ratio of 2.91 and a beta of 0.99. The firm’s fifty day simple moving average is $95.70 and its 200-day simple moving average is $92.89.

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.