Analysts Roast Starbucks Stock After Earnings

The stock is being slammed with bear notes this morning

Deputy Editor
Feb 2, 2022 at 10:49 AM
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Starbucks Corp (NASDAQ:SBUX) stock is slipping today, down 3.6% to trade at $95.19 at last check, after the company's mixed fiscal first-quarter report. The coffeehouse giant reported earnings of 72 cents per share, which was lower than analysts' expectations of 80 cents, despite better-than-anticipated revenue. The company also lowered its full-year profit guidance, and noted that it plans to hike its prices this year due to inflation. 

In response, Goldman Sachs downgraded SBUX to "hold" from "buy," while no fewer than 14 other analysts chimed in with price-target cuts. The adjustment from analysts was probably due considering the 12-month average price target of $117.35 is still a 20% premium to its current levels.

After the $117 level -- an area that has kept a cap on rallies since September -- rejected the stock at the start of the year, SBUX plummeted on the charts. Shorter term, the shares have been consolidating under $99 level after a 12 month low of $93.79 on Jan. 28. Year-to-date, the equity is down 18.6%. 

Options traders are swarming the security after the event, with volume running at five times what's typically seen at this point. So far, 29,000 calls and 19,000 puts have crossed the tape. The February 100 call is the most popular, followed by the weekly 2/4 97-strike call, with new positions being opened at the latter. 

 

 

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