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

Starbucks Co. (NASDAQ:SBUX) was the target of a significant 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. Currently, 2.8% of the shares of the company are sold short. Based on an average trading volume of 8,510,000 shares, the short-interest ratio is currently 3.6 days.

Insider Transactions at Starbucks

In related news, CFO Rachel Ruggeri sold 1,491 shares of the stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $99.54, for a total value of $148,414.14. Following the completion of the transaction, the chief financial officer now owns 80,124 shares in the company, valued at $7,975,542.96. This represents a 1.83 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Jorgen Vig Knudstorp bought 380 shares of the firm’s stock in a transaction that occurred on Friday, September 6th. The stock was bought at an average price of $91.50 per share, with a total value of $34,770.00. Following the transaction, the director now directly owns 36,242 shares in the company, valued at $3,316,143. This represents a 1.06 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 1.98% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Strategic Investment Solutions Inc. IL acquired a new position in Starbucks during the second quarter valued at approximately $25,000. New Millennium Group LLC acquired a new stake in shares of Starbucks in the second quarter worth $26,000. Stephens Consulting LLC lifted its position in Starbucks by 498.2% in the second quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock worth $26,000 after purchasing an additional 279 shares during the period. Hobbs Group Advisors LLC bought a new position in Starbucks in the second quarter worth $27,000. Finally, MFA Wealth Advisors LLC bought a new position in Starbucks in the second quarter worth $31,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Analyst Ratings Changes

SBUX has been the subject of a number of recent analyst reports. Morgan Stanley increased their target price on shares of Starbucks from $98.00 to $115.00 and gave the company an “overweight” rating in a research report on Wednesday, October 16th. Stifel Nicolaus raised their price objective 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. Evercore ISI upgraded shares of Starbucks from an “in-line” rating to an “outperform” rating and raised their price objective for the company from $80.00 to $120.00 in a research report on Wednesday, August 14th. BTIG Research raised their price objective on shares of Starbucks from $100.00 to $115.00 and gave the company a “buy” rating in a research report on Thursday, October 17th. Finally, Wells Fargo & Company raised their price objective on shares of Starbucks from $110.00 to $115.00 and gave the company an “overweight” rating in a research report on Tuesday, November 26th. Three analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $103.77.

Starbucks Price Performance

NASDAQ SBUX opened at $102.46 on Monday. The firm has a market capitalization of $116.17 billion, a price-to-earnings ratio of 30.95, a price-to-earnings-growth ratio of 3.00 and a beta of 0.97. The company has a 50 day simple moving average of $97.63 and a 200-day simple moving average of $88.10. Starbucks has a 52-week low of $71.55 and a 52-week high of $103.32.

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

Starbucks Increases Dividend

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

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.