Starbucks Co. (SBUX) Sees Large Decline in Short Interest

Starbucks Co. (NASDAQ:SBUX) was the recipient of a significant drop in short interest during the month of January. As of January 31st, there was short interest totalling 26,697,741 shares, a drop of 18.4% from the January 12th total of 32,702,722 shares. Approximately 1.9% of the shares of the stock are sold short. Based on an average daily volume of 15,267,369 shares, the days-to-cover ratio is currently 1.7 days.

SBUX has been the subject of several recent research reports. OTR Global raised Starbucks to a “positive” rating in a report on Thursday, October 26th. Morgan Stanley increased their price target on Starbucks from $62.00 to $67.00 and gave the company an “overweight” rating in a report on Friday, November 10th. Vetr cut Starbucks from a “buy” rating to a “hold” rating and set a $61.72 price target for the company. in a report on Monday, January 8th. Tigress Financial initiated coverage on Starbucks in a report on Wednesday, December 27th. They issued a “buy” rating for the company. Finally, Zacks Investment Research cut Starbucks from a “hold” rating to a “sell” rating in a report on Wednesday, October 18th. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $64.32.

Starbucks (SBUX) opened at $54.58 on Friday. Starbucks has a 52-week low of $52.58 and a 52-week high of $64.87. The company has a market capitalization of $77,660.00, a price-to-earnings ratio of 18.01, a PEG ratio of 1.51 and a beta of 0.70. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.81 and a current ratio of 1.01.

Starbucks (NASDAQ:SBUX) last released its earnings results on Thursday, January 25th. The coffee company reported $0.58 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.57 by $0.01. The firm had revenue of $6.07 billion during the quarter, compared to analyst estimates of $6.19 billion. Starbucks had a return on equity of 56.35% and a net margin of 19.28%. Starbucks’s revenue was up 5.9% compared to the same quarter last year. During the same period last year, the business posted $0.52 earnings per share. equities research analysts predict that Starbucks will post 2.49 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Thursday, February 8th will be issued a $0.30 dividend. The ex-dividend date is Wednesday, February 7th. This represents a $1.20 dividend on an annualized basis and a yield of 2.20%. Starbucks’s dividend payout ratio (DPR) is presently 39.60%.

In related news, SVP Paul Mutty sold 3,000 shares of the stock in a transaction that occurred on Tuesday, November 14th. The stock was sold at an average price of $56.95, for a total value of $170,850.00. Following the completion of the sale, the senior vice president now owns 10,438 shares of the company’s stock, valued at $594,444.10. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Howard D. Schultz sold 290,176 shares of the stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $57.03, for a total value of $16,548,737.28. Following the completion of the sale, the insider now directly owns 29,872,564 shares of the company’s stock, valued at approximately $1,703,632,324.92. The disclosure for this sale can be found here. In the last ninety days, insiders sold 597,668 shares of company stock valued at $34,216,388. Insiders own 3.40% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in SBUX. Taylor Hoffman Wealth Management purchased a new position in Starbucks in the fourth quarter valued at $107,000. Sumitomo Mitsui Financial Group Inc. purchased a new position in Starbucks in the third quarter valued at $111,000. Jacobi Capital Management LLC boosted its holdings in Starbucks by 6.9% in the second quarter. Jacobi Capital Management LLC now owns 2,007 shares of the coffee company’s stock valued at $116,000 after purchasing an additional 129 shares during the period. Gradient Investments LLC purchased a new position in Starbucks in the fourth quarter valued at $117,000. Finally, Valley National Advisers Inc. boosted its holdings in Starbucks by 2.8% in the second quarter. Valley National Advisers Inc. now owns 2,089 shares of the coffee company’s stock valued at $122,000 after purchasing an additional 57 shares during the period. Hedge funds and other institutional investors own 71.87% of the company’s stock.

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About Starbucks

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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