Starbucks Corporation (NASDAQ:SBUX) grew as high as $68.11 on Monday before closing at $67.58. The -0.78 percent plunge dragged its market cap to $90.4B. The shares went down as low as $67.08 before recovering. Trading activity significantly improved as the volume at ready counter increased to 13,484,736 shares versus 13,171,351 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 13,069,800 shares. The stock is now 42.66% above against its bear-market low of $47.37 on June 28, 2018. It has retreated -2.83% since it’s 52-week high of $69.49 reached in January. Now the market price is up 20.68% on the year and up 4.94% YTD.
SBUX’s 50 day simple moving average (SMA 50) price is $65.15 and its 200-day simple moving average (SMA 200) price is $58.2. The company’s stock currently has a total float of 1.2B shares. Its weekly volatility is hovering around 2.15% and felt 2.25% volatility in price over a month. On the upside, the share price will test short term resistance at around $68.1. On a downside, the stock is likely to find some support, which begins at $67.07. The failure to get near-term support could push it to $66.56.
Separately, it has been reported that multiple insider activity took place at Starbucks Corporation (SBUX). group pres. Siren Retail Burrows Clifford sold 152,634 shares for $248,255 in transaction occurred on 2019/01/29. After making this transaction, the group pres. Siren Retail owns a direct stake of 10,260,057 shares, worth $16,777,073, as per the last closing price. On 2018/09/12 Ullman Myron E Iii, Director at SBUX, dumped 99,166 shares at an average price of $55.05 per share. The selling total is valued at $946,120.
Director, Teruel Javier G had divested 166,666 shares for $109,787 through a trade on 2018/08/24. Following this activity, the insider holds 8,783,298 shares worth $7,419,405 as of recent close. Wall Street’s most bullish Starbucks Corporation (NASDAQ:SBUX) analysts are predicting the share price to blow past $81 per share during the next 12 months. The current median share price forecast by them is $70, suggesting that the stock could increase 3.58% in that time frame. The average price target of $69.92 calls for a nearly 3.46% increase in the stock price.
It had seen a change in price target from analysts at Oppenheimer, who reiterated the stock at Outperform on January 25 but moved PT from $70 to $72. Analysts at Goldman, shed their positive views on January 11 by lowering it fromBuy to Neutral. Brokerage firm Telsey Advisory Group, looks cautious as they stick to prior recommendation of Market Perform, in a call on December 03. However, they did change the target price from $66 to $70.
When looking at valuations, Starbucks Corporation (SBUX) has a cheap P/E of 20.33x as compared to industry average of 58.76x. Moreover, it trades for 22.3 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 77.68x price/book and 3.66x price/sales. Compared to others, Starbucks Corporation is in a different league with regards to profitability, having net margins of 18.4%. To put some perspective around this, the industry’s average net margin is 6.98%. SBUX’s ROE is 116.5%, which is also considerably better than the industry’s ROE of 15.78%. It’s also very liquid in the near term, with a current ratio of 2.2. The stock has a debt/capital of 8.07.
Shares of Starbucks Corporation (SBUX) have gained 5.2% since the company’s last earnings report. Over the past 12 fiscal quarters, Starbucks Corporation (NASDAQ:SBUX) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 0 quarters (0%), whereas at 7 occasion EPS met analyst expectations. SBUX last reported earnings on January 24, 2019 when it released Sep-18 results that exceeded expectations. The company raked in $0.62 per share, -82.34% change on the same period last year. That was better than consensus for $0.6. Revenue for the recent quarter stood at $6.3 billion, up 11% on last year and above the $6.27 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $6.96 billion to $7.12 billion, which should be compared with $7.65 billion generated last year. EPS is seen in a range of $0.71 to $0.77, against the $0.73 reported a year ago.