Starbucks (NASDAQ:SBUX) Now Covered by Royal Bank of Canada

Royal Bank of Canada initiated coverage on shares of Starbucks (NASDAQ:SBUX - Free Report) in a research note released on Friday, MarketBeat reports. The brokerage issued an outperform rating and a $115.00 target price on the coffee company's stock.

A number of other brokerages have also issued reports on SBUX. Stifel Nicolaus increased their target price on shares of Starbucks from $105.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, October 31st. Citigroup increased their price objective on shares of Starbucks from $96.00 to $99.00 and gave the company a "neutral" rating in a report on Thursday, October 31st. JPMorgan Chase & Co. boosted 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. TD Cowen reaffirmed a "buy" rating and set a $110.00 price target on shares of Starbucks in a research note on Monday. Finally, Evercore ISI raised Starbucks from an "in-line" rating to an "outperform" rating and boosted their price objective for the stock from $80.00 to $120.00 in a research note on Wednesday, August 14th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $102.81.

Starbucks Stock Down 0.2 %

Shares of SBUX traded down $0.20 during mid-day trading on Friday, reaching $98.42. 8,119,296 shares of the stock traded hands, compared to its average volume of 11,147,972. The firm has a market cap of $111.53 billion, a price-to-earnings ratio of 29.73, a P/E/G ratio of 2.89 and a beta of 0.97. The stock has a fifty day simple moving average of $96.60 and a 200 day simple moving average of $86.12. Starbucks has a 12-month low of $71.55 and a 12-month high of $107.66.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced 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 the consensus estimate of $9.60 billion. During the same period last year, the firm earned $1.06 earnings per share. The company's revenue was down 3.2% on a year-over-year basis. On average, equities research analysts expect that Starbucks will post 3.15 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be paid a $0.61 dividend. This is a boost from Starbucks's previous quarterly dividend of $0.57. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 annualized dividend and a dividend yield of 2.48%. Starbucks's payout ratio is presently 73.72%.

Insider Buying and Selling at Starbucks

In other news, Director Jorgen Vig Knudstorp acquired 380 shares of the firm's stock in a transaction dated Friday, September 6th. The shares were bought at an average price of $91.50 per share, with a total value of $34,770.00. Following the acquisition, the director now owns 36,242 shares of the company's stock, valued at $3,316,143. This trade represents a 1.06 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.98% of the company's stock.

Institutional Investors Weigh In On Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. Strategic Investment Solutions Inc. IL bought a new stake in Starbucks in the 2nd quarter valued at $25,000. New Millennium Group LLC acquired a new position in shares of Starbucks during the second quarter worth about $26,000. Stephens Consulting LLC grew its holdings in shares of 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 buying an additional 279 shares in the last quarter. Hobbs Group Advisors LLC acquired a new stake in Starbucks in the 2nd quarter valued at approximately $27,000. Finally, Olistico Wealth LLC bought a new stake in Starbucks in the 2nd quarter valued at approximately $31,000. 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.