Short Interest in Starbucks Co. (NASDAQ:SBUX) Increases By 50.9%

Starbucks Co. (NASDAQ:SBUX) was the recipient of a significant increase in short interest in the month of August. As of August 15th, there was short interest totalling 33,400,000 shares, an increase of 50.9% from the July 31st total of 22,140,000 shares. Approximately 3.0% of the shares of the company are short sold. Based on an average daily volume of 14,930,000 shares, the days-to-cover ratio is currently 2.2 days.

Starbucks Price Performance

Starbucks stock opened at $95.30 on Thursday. The firm’s fifty day moving average price is $80.16 and its 200 day moving average price is $83.83. The company has a market capitalization of $107.95 billion, a price-to-earnings ratio of 26.25, a price-to-earnings-growth ratio of 2.28 and a beta of 0.94. Starbucks has a 12-month low of $71.55 and a 12-month high of $107.66.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Tuesday, July 30th. The coffee company reported $0.93 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.93. The business had revenue of $9.11 billion for the quarter, compared to analyst estimates of $9.25 billion. Starbucks had a negative return on equity of 49.38% and a net margin of 11.16%. The company’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.00 earnings per share. Analysts forecast that Starbucks will post 3.55 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Friday, August 16th will be paid a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a dividend yield of 2.39%. The ex-dividend date is Friday, August 16th. Starbucks’s dividend payout ratio (DPR) is currently 62.81%.

Analysts Set New Price Targets

A number of brokerages have issued reports on SBUX. Robert W. Baird raised shares of Starbucks from a “neutral” rating to an “outperform” rating and increased their target price for the company from $81.00 to $110.00 in a report on Tuesday, August 13th. BTIG Research reduced their price objective on Starbucks from $115.00 to $100.00 and set a “buy” rating for the company in a report on Wednesday, May 1st. UBS Group lowered their target price on Starbucks from $95.00 to $85.00 and set a “neutral” rating on the stock in a report on Wednesday, May 1st. BMO Capital Markets cut their price target on Starbucks from $120.00 to $100.00 and set an “outperform” rating for the company in a report on Monday, July 22nd. Finally, The Goldman Sachs Group initiated coverage on Starbucks in a research note on Thursday, June 13th. They set a “buy” rating and a $100.00 price objective on the stock. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $99.21.

Insider Buying and Selling

In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction on Friday, June 14th. The shares were sold at an average price of $80.00, for a total value of $260,000.00. Following the transaction, the chief executive officer now directly owns 78,304 shares of the company’s stock, valued at approximately $6,264,320. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other news, CEO Rachel Ruggeri sold 3,290 shares of the firm’s stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total value of $299,916.40. Following the completion of the sale, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at approximately $5,697,682.32. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction on Friday, June 14th. The stock was sold at an average price of $80.00, for a total value of $260,000.00. Following the transaction, the chief executive officer now directly owns 78,304 shares in the company, valued at approximately $6,264,320. The disclosure for this sale can be found here. Insiders sold a total of 9,790 shares of company stock valued at $865,514 over the last three months. 1.98% of the stock is currently owned by company insiders.

Institutional Trading of Starbucks

A number of hedge funds have recently made changes to their positions in SBUX. Norges Bank bought a new position in Starbucks during the 4th quarter worth approximately $1,240,652,000. Ontario Teachers Pension Plan Board acquired a new position in Starbucks in the first quarter worth $415,167,000. Marshall Wace LLP boosted its holdings in Starbucks by 1,466.3% in the second quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock worth $260,870,000 after purchasing an additional 3,136,992 shares during the period. Diamond Hill Capital Management Inc. bought a new stake in Starbucks during the second quarter valued at $243,910,000. Finally, Flossbach Von Storch AG raised its holdings in shares of Starbucks by 106.7% during the first quarter. Flossbach Von Storch AG now owns 5,612,687 shares of the coffee company’s stock worth $512,943,000 after purchasing an additional 2,897,282 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

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.