Investors Sell Starbucks (SBUX) on Strength (SBUX)

Traders sold shares of Starbucks Co. (NASDAQ:SBUX) on strength during trading on Thursday. $56.82 million flowed into the stock on the tick-up and $113.04 million flowed out of the stock on the tick-down, for a money net flow of $56.22 million out of the stock. Of all companies tracked, Starbucks had the 22nd highest net out-flow for the day. Starbucks traded up $0.59 for the day and closed at $56.58

Several equities analysts recently commented on the company. Credit Suisse Group reduced their price target on Starbucks from $56.00 to $54.00 and set a “neutral” rating on the stock in a research report on Friday, November 3rd. Goldman Sachs Group lowered Starbucks from a “conviction-buy” rating to a “buy” rating and reduced their price target for the stock from $73.00 to $68.00 in a research report on Friday, January 26th. BTIG Research reissued a “buy” rating and set a $64.00 price target on shares of Starbucks in a research report on Friday, January 26th. OTR Global raised Starbucks to a “positive” rating in a research report on Thursday, October 26th. Finally, BMO Capital Markets reduced their price target on Starbucks from $56.00 to $52.00 and set a “market perform” rating on the stock in a research report on Friday, November 3rd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and twenty-two have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $64.63.

The company has a market capitalization of $79,530.00, a PE ratio of 18.99, a PEG ratio of 1.54 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 announced 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. Starbucks had a return on equity of 56.35% and a net margin of 19.28%. The company had revenue of $6.07 billion for the quarter, compared to analyst estimates of $6.19 billion. During the same period in the prior year, the company posted $0.52 EPS. Starbucks’s quarterly revenue was up 5.9% on a year-over-year basis. sell-side analysts expect that Starbucks Co. will post 2.49 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 23rd. Shareholders of record on Thursday, February 8th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.12%. The ex-dividend date is Wednesday, February 7th. Starbucks’s payout ratio is 40.27%.

In other news, insider Clifford Burrows sold 162,826 shares of the business’s stock in a transaction that occurred on Wednesday, January 31st. The stock was sold at an average price of $57.02, for a total value of $9,284,338.52. Following the completion of the sale, the insider now directly owns 331,829 shares in the company, valued at approximately $18,920,889.58. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Joshua Cooper Ramo sold 60,000 shares of the business’s stock in a transaction that occurred on Thursday, December 7th. The shares were sold at an average price of $59.43, for a total value of $3,565,800.00. The disclosure for this sale can be found here. Insiders sold a total of 329,492 shares of company stock valued at $18,859,801 over the last quarter. Company insiders own 3.40% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Halsey Associates Inc. CT increased its holdings in shares of Starbucks by 4.6% in the 4th quarter. Halsey Associates Inc. CT now owns 135,171 shares of the coffee company’s stock valued at $7,763,000 after acquiring an additional 5,915 shares during the last quarter. Altman Advisors Inc. bought a new stake in shares of Starbucks in the 4th quarter valued at approximately $1,662,000. Sterling Capital Management LLC increased its holdings in shares of Starbucks by 17.6% in the 4th quarter. Sterling Capital Management LLC now owns 9,691 shares of the coffee company’s stock valued at $557,000 after acquiring an additional 1,453 shares during the last quarter. MEMBERS Trust Co grew its stake in Starbucks by 50.9% during the 4th quarter. MEMBERS Trust Co now owns 14,885 shares of the coffee company’s stock worth $855,000 after buying an additional 5,024 shares during the last quarter. Finally, Vanguard Capital Wealth Advisors bought a new position in Starbucks during the 4th quarter worth $1,669,000. Institutional investors and hedge funds own 71.92% 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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