Short Interest in Starbucks Co. (NASDAQ:SBUX) Drops By 8.6%

Starbucks Co. (NASDAQ:SBUX) was the recipient of a significant drop in short interest in August. As of August 31st, there was short interest totalling 18,449,100 shares, a drop of 8.6% from the July 31st total of 20,182,400 shares. Based on an average daily trading volume, of 7,650,000 shares, the short-interest ratio is currently 2.4 days. Currently, 1.6% of the shares of the stock are short sold.

SBUX traded down $1.58 during midday trading on Friday, hitting $90.48. The company had a trading volume of 5,912,005 shares, compared to its average volume of 6,201,575. Starbucks has a 52 week low of $54.10 and a 52 week high of $99.72. The company has a market capitalization of $110.20 billion, a price-to-earnings ratio of 37.39, a PEG ratio of 2.51 and a beta of 0.56. The stock’s 50 day moving average price is $95.75 and its 200 day moving average price is $82.79.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Thursday, July 25th. The coffee company reported $0.78 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.06. Starbucks had a net margin of 13.63% and a negative return on equity of 125.91%. The firm had revenue of $6.82 billion during the quarter, compared to the consensus estimate of $6.67 billion. During the same period in the previous year, the firm posted $0.62 earnings per share. The business’s revenue was up 8.1% compared to the same quarter last year. Sell-side analysts forecast that Starbucks will post 2.83 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Friday, August 23rd. Stockholders of record on Thursday, August 8th were given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 1.59%. The ex-dividend date of this dividend was Wednesday, August 7th. Starbucks’s payout ratio is presently 59.50%.

In other news, Director Myron E. Ullman III sold 9,973 shares of Starbucks stock in a transaction on Monday, July 1st. The shares were sold at an average price of $84.64, for a total transaction of $844,114.72. Following the transaction, the director now owns 28,390 shares in the company, valued at $2,402,929.60. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Kevin R. Johnson sold 23,390 shares of the business’s stock in a transaction on Monday, July 29th. The shares were sold at an average price of $98.32, for a total transaction of $2,299,704.80. The disclosure for this sale can be found here. Insiders sold 142,767 shares of company stock worth $13,690,565 in the last 90 days. Company insiders own 3.98% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Abbrea Capital LLC increased its position in shares of Starbucks by 1.9% during the second quarter. Abbrea Capital LLC now owns 5,525 shares of the coffee company’s stock worth $463,000 after acquiring an additional 105 shares in the last quarter. Gamco Investors INC. ET AL increased its position in shares of Starbucks by 0.3% during the second quarter. Gamco Investors INC. ET AL now owns 38,395 shares of the coffee company’s stock worth $3,219,000 after acquiring an additional 115 shares in the last quarter. Duncker Streett & Co. Inc. increased its position in shares of Starbucks by 0.4% during the second quarter. Duncker Streett & Co. Inc. now owns 30,160 shares of the coffee company’s stock worth $2,528,000 after acquiring an additional 120 shares in the last quarter. D.B. Root & Company LLC increased its position in shares of Starbucks by 0.8% during the second quarter. D.B. Root & Company LLC now owns 14,929 shares of the coffee company’s stock worth $1,251,000 after acquiring an additional 122 shares in the last quarter. Finally, Grove Bank & Trust increased its position in shares of Starbucks by 3.0% during the second quarter. Grove Bank & Trust now owns 4,373 shares of the coffee company’s stock worth $367,000 after acquiring an additional 128 shares in the last quarter. 71.20% of the stock is owned by institutional investors.

SBUX has been the topic of several recent analyst reports. Jefferies Financial Group boosted their target price on shares of Starbucks from $96.00 to $110.00 and gave the company a “buy” rating in a report on Friday, July 26th. BMO Capital Markets boosted their target price on shares of Starbucks to $84.00 and gave the company a “market perform” rating in a report on Friday, July 26th. They noted that the move was a valuation call. Wedbush boosted their target price on shares of Starbucks from $88.00 to $95.00 and gave the company a “neutral” rating in a report on Friday, July 26th. Citigroup initiated coverage on shares of Starbucks in a report on Wednesday, June 26th. They issued a “buy” rating and a $83.65 target price on the stock. Finally, Cowen set a $93.00 target price on shares of Starbucks and gave the company a “hold” rating in a report on Friday, July 26th. One analyst has rated the stock with a sell rating, sixteen have issued a hold rating and fifteen have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $89.53.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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