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

Starbucks Co. (NASDAQ:SBUX) was the target of a large decrease in short interest in the month of September. As of September 28th, there was short interest totalling 25,103,170 shares, a decrease of 6.0% from the September 14th total of 26,691,830 shares. Approximately 1.9% of the shares of the company are short sold. Based on an average daily trading volume, of 10,405,827 shares, the short-interest ratio is presently 2.4 days.

In other Starbucks news, Director Myron E. Ullman III sold 15,000 shares of the stock in a transaction on Friday, August 3rd. The shares were sold at an average price of $52.13, for a total value of $781,950.00. Following the completion of the sale, the director now directly owns 29,000 shares of the company’s stock, valued at approximately $1,511,770. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Javier G. Teruel sold 166,666 shares of the stock in a transaction on Friday, August 24th. The shares were sold at an average price of $52.70, for a total transaction of $8,783,298.20. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 295,832 shares of company stock valued at $15,834,037. 3.48% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Town & Country Bank & Trust CO dba First Bankers Trust CO raised its holdings in shares of Starbucks by 27.6% in the third quarter. Town & Country Bank & Trust CO dba First Bankers Trust CO now owns 28,986 shares of the coffee company’s stock valued at $1,648,000 after purchasing an additional 6,261 shares during the last quarter. North Star Investment Management Corp. boosted its position in shares of Starbucks by 7.2% in the third quarter. North Star Investment Management Corp. now owns 45,716 shares of the coffee company’s stock valued at $2,598,000 after acquiring an additional 3,062 shares during the period. Kiley Juergens Wealth Management LLC boosted its position in shares of Starbucks by 3.4% in the third quarter. Kiley Juergens Wealth Management LLC now owns 101,998 shares of the coffee company’s stock valued at $5,797,000 after acquiring an additional 3,375 shares during the period. Iberiabank Corp boosted its position in shares of Starbucks by 64.5% in the third quarter. Iberiabank Corp now owns 75,811 shares of the coffee company’s stock valued at $4,309,000 after acquiring an additional 29,737 shares during the period. Finally, Curbstone Financial Management Corp bought a new stake in shares of Starbucks in the third quarter valued at about $538,000. Institutional investors own 71.90% of the company’s stock.

A number of brokerages have weighed in on SBUX. Bank of America increased their price target on shares of Starbucks from $57.00 to $64.00 and gave the company a “buy” rating in a report on Wednesday. BidaskClub raised shares of Starbucks from a “hold” rating to a “buy” rating in a report on Tuesday. KeyCorp reissued a “buy” rating on shares of Starbucks in a report on Thursday, October 4th. Zacks Investment Research downgraded shares of Starbucks from a “hold” rating to a “sell” rating in a report on Friday, September 28th. Finally, Wedbush reissued a “hold” rating and issued a $53.00 price target on shares of Starbucks in a report on Tuesday, September 18th. One analyst has rated the stock with a sell rating, thirteen have given a hold rating and seventeen have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus target price of $60.35.

Starbucks stock opened at $54.86 on Friday. Starbucks has a fifty-two week low of $47.37 and a fifty-two week high of $61.94. The company has a market cap of $76.68 billion, a P/E ratio of 26.83, a PEG ratio of 1.69 and a beta of 0.60. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.76 and a current ratio of 1.01.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings data on Thursday, July 26th. The coffee company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.02. Starbucks had a net margin of 18.87% and a return on equity of 67.11%. The business had revenue of $6.31 billion for the quarter, compared to analyst estimates of $6.25 billion. During the same quarter last year, the firm earned $0.55 EPS. Starbucks’s quarterly revenue was up 11.5% compared to the same quarter last year. Analysts expect that Starbucks will post 2.4 EPS for the current fiscal year.

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 coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

Further Reading: Intrinsic Value and Stock Selection

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