Starbucks (NASDAQ:SBUX) Trading Down 1.6% Following Insider Selling

Shares of Starbucks Co. (NASDAQ:SBUX) dropped 1.6% on Monday after an insider sold shares in the company. The stock traded as low as $93.01 and last traded at $93.29. Approximately 3,924,762 shares were traded during trading, a decline of 67% from the average daily volume of 12,007,440 shares. The stock had previously closed at $94.81.

Specifically, CEO Michael Aaron Conway sold 3,250 shares of the stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $94.03, for a total value of $305,597.50. Following the sale, the chief executive officer now owns 75,054 shares of the company’s stock, valued at $7,057,327.62. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Rachel Ruggeri sold 3,290 shares of the company’s stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total transaction of $299,916.40. Following the completion of the transaction, the chief executive officer now owns 62,502 shares in the company, valued at $5,697,682.32. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

SBUX has been the topic of a number of research reports. Evercore ISI raised shares of Starbucks from an “in-line” rating to an “outperform” rating and raised their target price for the company from $80.00 to $120.00 in a research report on Wednesday, August 14th. Stifel Nicolaus raised shares of Starbucks from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $80.00 to $110.00 in a research report on Wednesday, August 14th. Morgan Stanley reaffirmed an “overweight” rating and issued a $98.00 price objective on shares of Starbucks in a research report on Wednesday, July 31st. Piper Sandler upgraded shares of Starbucks from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $85.00 to $103.00 in a research note on Tuesday, August 13th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Starbucks from a “hold” rating to a “buy” rating and lifted their target price for the stock from $85.00 to $118.00 in a research note on Wednesday, August 14th. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Starbucks presently has a consensus rating of “Moderate Buy” and an average target price of $99.21.

Starbucks Stock Performance

The stock has a market cap of $105.09 billion, a PE ratio of 25.49, a PEG ratio of 2.25 and a beta of 0.94. The business has a 50-day moving average of $78.71 and a 200 day moving average of $83.85.

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

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Friday, August 16th will be paid a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 2.46%. The ex-dividend date is Friday, August 16th. Starbucks’s dividend payout ratio is currently 62.81%.

Hedge Funds Weigh In On Starbucks

Several hedge funds and other institutional investors have recently bought and sold shares of SBUX. Orca Investment Management LLC increased its holdings in shares of Starbucks by 6.6% in the 4th quarter. Orca Investment Management LLC now owns 7,494 shares of the coffee company’s stock valued at $719,000 after acquiring an additional 466 shares during the last quarter. Cox Capital Mgt LLC boosted its position in Starbucks by 41.9% during the 1st quarter. Cox Capital Mgt LLC now owns 45,322 shares of the coffee company’s stock worth $4,142,000 after acquiring an additional 13,372 shares during the period. Summa Corp. acquired a new stake in shares of Starbucks in the fourth quarter valued at $384,000. Brevan Howard Capital Management LP acquired a new stake in shares of Starbucks in the fourth quarter valued at $2,781,000. Finally, FFT Wealth Management LLC acquired a new stake in shares of Starbucks in the fourth quarter valued at $209,000. 72.29% of the stock is owned by institutional investors and hedge funds.

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.