The Insider Activity Of Starbucks Corporation (SBUX) Should Not Be Ignored

As of Thursday close, Starbucks Corporation’s (NASDAQ:SBUX) stock was down -$0.16, moving down -0.23 percent to $69.90. The average number of shares traded per day over the past five days has been 13,138,761 shares. 1 time new highs have been achieved over the past 5 days, with a -$7.58 fall in that time frame. In the last twenty days, the average volume was 12,066,226, while in the previous 50 days, it was 11,406,018.

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Since last month, SBUX stock retreated -12.40%. Shares of the company fell to $68.39 on 05/12/22, the lowest level in the past month. A 52-week high of $126.32 was reached on 01/03/22 after having rallying from a 52-week low of $69.96. Since the beginning of this year, SBUX’s stock price has dropped by -40.24% or -$47.07, and marked a new high 1 time. However, the stock has declined by -44.66% since its 52-week high.

Starbucks Corporation (SBUX) last reported insider trading activity 3 days ago on May 10. SCHULTZ HOWARD D, the interim ceo of the company, purchased of 137,500 shares for $72.67 on May 10. It resulted in a $9,991,685 investment by the insider. Lis Angela sold 6,000 shares at an average price of $116.88 on Dec 10. The insider now owns 37,422 shares following the transaction. On Dec 08, president and ceo JOHNSON KEVIN R sold 250,000 shares at $116.09 apiece. The transaction was valued at $29,021,498.

Valuation Metrics

The latest dividend of $0.49 per share was paid out, remained unchanged from last year’s $0.49. On Wednesday September 29 2021, a $0.04 dividend increase was announced.

Financial Health

In the recent quarter, Starbucks Corporation’s quick ratio stood at 0.60, while its current ratio was 0.80, showing that the company is not able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 27.70% percent. In the recent year, EBITDA margin amounted to 25.59%, whereas operating margins totaled 19.00%. Based on annual data, SBUX earned $20.32 billion in gross profit and brought in $29.06 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 49.30%. Return on equity (ROE) for the past 12 months was -60.10%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. SBUX’s revenue rose 12.67% to $8.05 billion during the quarter, while net income inched up to $7.64 billion. During the quarter, the company generated $1.34 billion in EBITDA. The liabilities of Starbucks Corporation were 37.78 billion at the end of its most recent quarter, and its total debt was $23.75 billion. The value of shareholders’ equity is $1.15 billion.

Technical Picture

This quick technical analysis looks at Starbucks Corporation’s (SBUX) price momentum. With a historical volatility rate of 62.96%, the RSI 9-day stood at 30.59% on 12 May.

With respect to its five-day moving average, the current Starbucks Corporation price is down by -9.78% percent or -$7.58. At present, SBUX shares trade -13.62% below its 20-day simple moving average and -35.65% percent below its 100-day simple moving average. However, the stock is currently trading approximately -24.65% below its SMA50 and -42.90% below its SMA200.

Stochastic coefficient K was 4.47% and Stochastic coefficient D was 6.12%, while ATR was 2.77. Given the Stochastic reading of 10.43% for the 14-day period, the RSI (14) reading has been calculated as 32.94%. As of today, the MACD Oscillator reading stands at -3.91, while the 14-day reading stands at -4.41.

Analyst Ratings

Evercore ISI upgraded its rating on Starbucks Corporation (NASDAQ: SBUX) to an Outperform in a note to investors on May 04, 2022. The analysts firm previously had an In-line rating on the stock.Starbucks Corporation (SBUX) has been rated Overweight by analysts. According to 0 brokerage firms, SBUX is a sell, and 16 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Starbucks Corporation stock as buy, with 14 recommending it as overweight.

With a median target price of $94.00, the current consensus forecast for the stock is $76.00 – $116.00. Based on these forecasts, analysts predict Starbucks Corporation (SBUX) will achieve an average price target of $93.89.


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