Traders Sell Starbucks (SBUX) on Strength (SBUX)

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Traders sold shares of Starbucks Co. (NASDAQ:SBUX) on strength during trading hours on Wednesday. $77.61 million flowed into the stock on the tick-up and $225.63 million flowed out of the stock on the tick-down, for a money net flow of $148.02 million out of the stock. Of all equities tracked, Starbucks had the 3rd highest net out-flow for the day. Starbucks traded up $0.19 for the day and closed at $70.39

A number of research firms have recently weighed in on SBUX. Royal Bank of Canada increased their target price on shares of Starbucks to $68.00 and gave the stock a “positive” rating in a report on Friday, November 2nd. Oppenheimer reiterated an “outperform” rating and set a $72.00 target price (up from $70.00) on shares of Starbucks in a report on Friday, January 25th. BidaskClub lowered shares of Starbucks from a “strong-buy” rating to a “buy” rating in a report on Friday, November 2nd. KeyCorp set a $70.00 target price on shares of Starbucks and gave the stock a “buy” rating in a report on Friday, December 14th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $66.00 target price on shares of Starbucks in a report on Friday, November 2nd. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus price target of $67.01.

The company has a current ratio of 1.41, a quick ratio of 1.16 and a debt-to-equity ratio of 7.73. The firm has a market capitalization of $87.93 billion, a P/E ratio of 29.09, a PEG ratio of 2.03 and a beta of 0.48.

Starbucks (NASDAQ:SBUX) last released its earnings results on Thursday, January 24th. The coffee company reported $0.75 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.65 by $0.10. Starbucks had a net margin of 11.98% and a return on equity of 193.00%. The firm had revenue of $6.63 billion during the quarter, compared to analyst estimates of $6.49 billion. During the same period last year, the business earned $0.65 earnings per share. The business’s revenue was up 9.2% on a year-over-year basis. Analysts forecast that Starbucks Co. will post 2.72 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 22nd. Stockholders of record on Thursday, February 7th will be issued a dividend of $0.36 per share. The ex-dividend date is Wednesday, February 6th. This represents a $1.44 annualized dividend and a dividend yield of 2.05%. Starbucks’s payout ratio is 59.50%.

In other news, EVP Vivek C. Varma sold 70,364 shares of Starbucks stock in a transaction that occurred on Wednesday, February 13th. The shares were sold at an average price of $70.05, for a total transaction of $4,928,998.20. Following the completion of the transaction, the executive vice president now directly owns 138,004 shares in the company, valued at $9,667,180.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Clifford Burrows sold 152,634 shares of Starbucks stock in a transaction that occurred on Tuesday, January 29th. The shares were sold at an average price of $67.22, for a total transaction of $10,260,057.48. Following the transaction, the insider now owns 311,083 shares of the company’s stock, valued at $20,910,999.26. The disclosure for this sale can be found here. Insiders have sold 565,806 shares of company stock valued at $38,789,988 over the last quarter. Company insiders own 3.98% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in SBUX. Standard Life Aberdeen plc increased its position in shares of Starbucks by 5.4% during the third quarter. Standard Life Aberdeen plc now owns 653,570 shares of the coffee company’s stock valued at $37,153,000 after acquiring an additional 33,573 shares in the last quarter. CI Global Investments Inc. increased its position in shares of Starbucks by 1.3% during the third quarter. CI Global Investments Inc. now owns 120,363 shares of the coffee company’s stock valued at $6,841,000 after acquiring an additional 1,523 shares in the last quarter. Middleton & Co Inc MA increased its position in shares of Starbucks by 1.3% during the third quarter. Middleton & Co Inc MA now owns 142,998 shares of the coffee company’s stock valued at $8,128,000 after acquiring an additional 1,768 shares in the last quarter. Taylor Hoffman Wealth Management increased its position in shares of Starbucks by 83.8% during the third quarter. Taylor Hoffman Wealth Management now owns 3,437 shares of the coffee company’s stock valued at $195,000 after acquiring an additional 1,567 shares in the last quarter. Finally, D.A. Davidson & CO. increased its position in shares of Starbucks by 1.4% during the fourth quarter. D.A. Davidson & CO. now owns 320,543 shares of the coffee company’s stock valued at $20,643,000 after acquiring an additional 4,531 shares in the last quarter. Hedge funds and other institutional investors own 73.29% of the company’s stock.

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About Starbucks (NASDAQ:SBUX)

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

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