Starbucks (NASDAQ:SBUX) Trading Down 0.3% on Insider Selling

Starbucks Co. (NASDAQ:SBUX)’s share price dropped 0.3% on Thursday after an insider sold shares in the company. The stock traded as low as $92.98 and last traded at $93.61. Approximately 4,519,650 shares changed hands during trading, a decline of 62% from the average daily volume of 11,929,635 shares. The stock had previously closed at $93.90.

Specifically, CEO Rachel Ruggeri sold 3,290 shares of the company’s stock in a transaction on Tuesday, August 13th. The shares were sold at an average price of $91.16, for a total value of $299,916.40. Following 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 SEC, which is available at the SEC website.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on SBUX. Baird R W raised shares of Starbucks from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Evercore ISI raised shares of Starbucks from an “in-line” rating to an “outperform” rating and increased their target price for the stock from $80.00 to $120.00 in a research note on Wednesday. Bank of America increased their target price on shares of Starbucks from $108.00 to $112.00 and gave the stock a “buy” rating in a research note on Monday, June 10th. Wells Fargo & Company cut their target price on shares of Starbucks from $105.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 1st. Finally, BMO Capital Markets cut their target price on shares of Starbucks from $120.00 to $100.00 and set an “outperform” rating on the stock in a research note on Monday, July 22nd. Twelve research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Starbucks currently has an average rating of “Moderate Buy” and an average price target of $98.79.

Starbucks Price Performance

The company’s fifty day moving average price is $78.23 and its 200 day moving average price is $84.00. The company has a market cap of $107.44 billion, a PE ratio of 26.12, a P/E/G ratio of 1.80 and a beta of 0.94.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Tuesday, July 30th. The coffee company reported $0.93 EPS for the quarter, meeting the consensus estimate of $0.93. Starbucks had a net margin of 11.16% and a negative return on equity of 49.38%. The company had revenue of $9.11 billion during the quarter, compared to the consensus estimate of $9.25 billion. During the same quarter in the prior year, the company posted $1.00 earnings per share. The firm’s revenue for the quarter was down .6% on a year-over-year basis. On average, analysts forecast that Starbucks Co. will post 3.55 EPS for the current year.

Starbucks Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 30th. Investors of record on Friday, August 16th will be issued a dividend of $0.57 per share. The ex-dividend date is Friday, August 16th. This represents a $2.28 dividend on an annualized basis and a yield of 2.40%. Starbucks’s dividend payout ratio (DPR) is presently 62.81%.

Institutional Trading of Starbucks

Large investors have recently added to or reduced their stakes in the stock. Scarborough Advisors LLC purchased a new stake in Starbucks during the fourth quarter worth about $26,000. Vima LLC purchased a new position in shares of Starbucks in the fourth quarter worth about $26,000. DSM Capital Partners LLC purchased a new position in shares of Starbucks in the fourth quarter worth about $27,000. Fairman Group LLC purchased a new position in shares of Starbucks in the fourth quarter worth about $30,000. Finally, Cypress Capital Management LLC WY increased its stake in shares of Starbucks by 133.1% in the fourth quarter. Cypress Capital Management LLC WY now owns 324 shares of the coffee company’s stock worth $31,000 after purchasing an additional 185 shares in the last quarter. Hedge funds and other institutional investors own 72.29% of the company’s stock.

About Starbucks

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.