Analyzing Starbucks Corporation (SBUX) By Technical Indicators


As of Wednesday close, Starbucks Corporation’s (NASDAQ:SBUX) stock was up $1.09, moving up 1.11 percent to $99.52. The average number of shares traded per day over the past five days has been 5,411,520 shares. 5 times new highs have been achieved over the past 5 days, with a $2.45 gain in that time frame. In the last twenty days, the average volume was 8,015,890, while in the previous 50 days, it was 7,876,532.

Since last month, SBUX stock rose 16.79%. Shares of the company fell to $82.43 on 10/24/22, the lowest level in the past month. A 52-week high of $117.80 was reached on 01/03/22 after having rallying from a 52-week low of $68.39. Since the beginning of this year, SBUX’s stock price has dropped by -14.92% or -$17.45, and marked a new high 1 time. However, the stock has declined by -15.52% since its 52-week high.

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SBUX stock investors should be aware that Starbucks Corporation (SBUX) stock had its last reported insider trading activity 71 days ago on Sep 15. ALLISON RICHARD E JR, the Director of the company, purchased of 10,000 shares for $92.53 on Sep 15. It resulted in a $925,320 investment by the insider. HOBSON MELLODY L added 54,750 shares at an average price of $92.58 on Sep 15. The insider now owns 433,254 shares following the transaction. On Sep 15, acting evp, general counsel Jenkins Zabrina sold 4,020 shares at $93.00 apiece. The transaction was valued at $373,860.

Valuation Metrics

The latest dividend of $0.53 per share was paid out, which is 8.16% more than last year’s $0.49. On Wednesday September 28 2022, a $0.04 dividend increase was announced.

Financial Health

In the three months ended June 29, 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 26.00% percent. In the year ended June 29, operating margins totaled 18.50%. Based on annual data, SBUX earned $21.93 billion in gross profit and brought in $32.25 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 -56.50%.

In Starbucks Corporation’s quarter-end financial report for June 29, it reported total debt of $13.59 billion against cash and short-term investments of $87.4 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. SBUX’s revenue fell -19.0% to $8.15 billion during the quarter, while net income inched up to $6.85 billion. While analysts expected Starbucks Corporation to report $0.75 quarterly earnings, the actual figure was $0.84 per share, beating the consensus estimate by 12.00%. During the quarter, the company generated $1.56 billion in EBITDA. The liabilities of Starbucks Corporation were 36.68 billion at the end of its most recent quarter ended June 29, and its total debt was $23.9 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 9.09%, the RSI 9-day stood at 75.16% on 23 November.

With respect to its five-day moving average, the current Starbucks Corporation price is up by +2.52% percent or $2.45. At present, SBUX shares trade +15.87% above its 20-day simple moving average and +25.15% percent above its 100-day simple moving average. However, the stock is currently trading approximately +7.36% above its SMA50 and +4.85% above its SMA200.

Stochastic coefficient K was 93.62% and Stochastic coefficient D was 91.67%, while ATR was 2.32. Given the Stochastic reading of 94.81% for the 14-day period, the RSI (14) reading has been calculated as 69.14%. As of today, the MACD Oscillator reading stands at 0.88, while the 14-day reading stands at 2.77.

Analyst Ratings

Stephens launched its rating on Starbucks Corporation (NASDAQ: SBUX) to an Equal-weight in a note to investors on September 23, 2022. Starbucks Corporation (SBUX) has been rated Overweight by analysts. According to 0 brokerage firms, SBUX is a sell, and 17 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 4 analysts rate Starbucks Corporation stock as buy, with 13 recommending it as overweight.

With a median target price of $98.00, the current consensus forecast for the stock is $87.00 – $118.90. Based on these forecasts, analysts predict Starbucks Corporation (SBUX) will achieve an average price target of $99.00.


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