Starbucks Co. (NASDAQ:SBUX) Sees Large Growth in Short Interest

Starbucks Co. (NASDAQ:SBUX) was the recipient of a large growth in short interest during the month of November. As of November 15th, there was short interest totalling 30,790,000 shares, a growth of 22.3% from the October 31st total of 25,170,000 shares. Based on an average trading volume of 8,510,000 shares, the days-to-cover ratio is presently 3.6 days. Currently, 2.8% of the company’s shares are short sold.

Starbucks Stock Performance

Starbucks stock traded up $0.95 during mid-day trading on Friday, reaching $102.46. The company’s stock had a trading volume of 3,419,300 shares, compared to its average volume of 7,186,895. The firm’s fifty day moving average price is $97.63 and its two-hundred day moving average price is $88.10. Starbucks has a 12-month low of $71.55 and a 12-month high of $103.32. The company has a market capitalization of $116.17 billion, a P/E ratio of 30.95, a PEG ratio of 3.00 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The company had revenue of $9.07 billion for the quarter, compared to analyst estimates of $9.60 billion. During the same period in the prior year, the company posted $1.06 EPS. The firm’s revenue for the quarter was down 3.2% on a year-over-year basis. On average, research analysts predict that Starbucks will post 3.12 EPS for the current fiscal year.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Friday, November 15th were given a dividend of $0.61 per share. The ex-dividend date of this dividend was Friday, November 15th. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.38%. Starbucks’s dividend payout ratio (DPR) is 73.72%.

Insiders Place Their Bets

In other news, Director Jorgen Vig Knudstorp purchased 380 shares of the stock in a transaction on Friday, September 6th. The stock was purchased at an average price of $91.50 per share, for a total transaction of $34,770.00. Following the acquisition, the director now owns 36,242 shares in the company, valued at $3,316,143. This trade represents a 1.06 % increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Rachel Ruggeri sold 1,491 shares of the company’s stock in a transaction on Thursday, November 21st. The shares were 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 directly owns 80,124 shares in the company, valued at approximately $7,975,542.96. This represents a 1.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.98% of the company’s stock.

Institutional Trading of Starbucks

Large investors have recently modified their holdings of the company. LRI Investments LLC bought a new stake in shares of Starbucks in the 1st quarter valued at about $77,000. Burney Co. lifted its holdings in Starbucks by 10.5% during the first quarter. Burney Co. now owns 3,154 shares of the coffee company’s stock worth $288,000 after buying an additional 300 shares during the period. DekaBank Deutsche Girozentrale lifted its holdings in Starbucks by 9.7% during the first quarter. DekaBank Deutsche Girozentrale now owns 432,452 shares of the coffee company’s stock worth $39,660,000 after buying an additional 38,285 shares during the period. Mosaic Family Wealth Partners LLC increased its holdings in shares of Starbucks by 12.8% in the 1st quarter. Mosaic Family Wealth Partners LLC now owns 2,625 shares of the coffee company’s stock valued at $240,000 after acquiring an additional 298 shares during the period. Finally, Transcend Capital Advisors LLC raised its position in shares of Starbucks by 1.7% in the 2nd quarter. Transcend Capital Advisors LLC now owns 17,313 shares of the coffee company’s stock worth $1,348,000 after acquiring an additional 292 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. BTIG Research raised their price objective on shares of Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a research report on Thursday, October 17th. Barclays lowered their target price on shares of Starbucks from $110.00 to $108.00 and set an “overweight” rating on the stock in a report on Thursday, October 31st. Citigroup lifted their price target on Starbucks from $96.00 to $99.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Redburn Atlantic reissued a “sell” rating and issued a $77.00 price objective (down from $84.00) on shares of Starbucks in a research note on Wednesday, November 13th. Finally, Robert W. Baird raised Starbucks from a “neutral” rating to an “outperform” rating and lifted their target price for the company from $81.00 to $110.00 in a research report on Tuesday, August 13th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $103.77.

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.