Starbucks Corporation (SBUX) Stock: Seeing Gains In Today’s Session

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Starbucks Corporation (SBUX) is trending up in the market today. The stock, one that is focused in the service sector, is presently priced at $72.26 after heading up 0.88% so far today. When it comes to service stocks, there are quite a few aspects that have the potential to cause movement in the market. One of the most common is news. Here are the most recent headlines relating to SBUX:

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Mar-21-19 04:57PM Howard Schultz bashes both parties, tax reform and over-regulation during Denver visit
04:54PM Good Works: Colo. biz makes snowboard goggles for charity, Bobo’s Oat Bars helps sick kids
04:39PM Starbucks is investing $100m in a new food-focused fund with Chicagos Valor Equity
09:40AM Darden (DRI) Stock Up on Q3 Earnings Beat & Upbeat View
08:03AM The Zacks Analyst Blog Highlights: Starbucks, Carrefour and Walmart

However, when making an investing decision, investors should look into much more than just news, especially in the ever highly complex service space. Here’s what’s going on with Starbucks Corporation.

Trends That We’ve Seen From SBUX

Although a move up in a single session, like what we’re seeing from Starbucks Corporation might make some investors fearful, a single session move alone should not be the reason for a decision to, or not to, invest in a company. It’s always smart to dig into trends experienced by the stock further out than a single trading session. As it relates to SBUX, below are the trends that investors have experienced:

  • Past 7 Days – Throughout the past five trading sessions, SBUX has seen a price change amounting to 2.15%.
  • Past Month – The monthly returns from Starbucks Corporation has been 2.66%.
  • Past Three Months – Throughout the past 3 months, the stock has generated a ROI of 11.31%
  • Past Six Months – Throughout the past six months, investors have seen a change of 31.21% from the company.
  • This Year So Far – Since the open of this year SBUX has resulted in a ROI of 12.20%.
  • Full Year – Lastly, throughout the last full year, investors have seen movement of 23.18% out of SBUX. Throughout this period of time, the stock has sold at a high price of -0.19% and a low price of 52.54%.

Ratios To Watch

Looking at a few key ratios having to do with a stock generally gives investors a look of just how risky and/or potentially profitable a an investment option may be. Below are some of the key ratios to look at when digging into SBUX.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is headed for the top. In general, strong service stocks tend to carry a lower short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, with regard to Starbucks Corporation, the stock’s short ratio comes to 2.21.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure the company’s abilities to pay for its debts when they mature using quick assets or current assets. come with strong current and quick ratios. When it comes to SBUX, the quick and current ratios come to 1.20 and 1.40 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets that are owned by the company. In this case, the book to share value ratio is -2.32.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value ratio works out to 4.01.

Investors Tend To Follow The Big Money

One thing I’ve learned in my short period on Earth is that smart investors tend to follow the moves made by big money players. Usually, investors that are trying to play it relatively safe will watch moves made by institutions and insiders of the company. With that said, how does the big money flow when it comes to SBUX? Here’s the scoop:

  • Institutional Investors – Currently, institutions own 75.80% of SBUX. Nonetheless, it is important to note that institutional ownership has seen a move in the amount of -4.35% in the last 3 months.
  • Insider Moves – with regard to insiders, those close to the situation currently own 0.10% of Starbucks Corporation. Insider ownership of the company has seen a change of -31.25% in the past quarter.

What Analysts Think About Starbucks Corporation

While it’s never a good idea to blindly follow the thoughts of analysts, it is a smart idea to use their opinions when validating your own due diligence when it comes to making investment decisions in the service space. Here are the most recent moves that we have seen from analysts with regard to SBUX.

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Jan-25-19 Reiterated Oppenheimer Outperform $70 → $72
Jan-11-19 Downgrade Goldman Buy → Neutral
Dec-03-18 Reiterated Telsey Advisory Group Market Perform $66 → $70
Nov-12-18 Upgrade Argus Hold → Buy
Nov-05-18 Upgrade Mizuho Neutral → Buy

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $3.03. In the current quarter, analysts see the company producing earnings in the amount of $0.56. Over the last 5 years, SBUX has generated revenue in the amount of $10.70% with earnings coming in at 261.40%. On a quarter over quarter basis, earnings have seen movement of -63.30% and revenue has seen movement of 9.20%.

What’s The Float Looking Like?

Investors and traders tend to have an interest in the amounts of shares both outstanding and available. With respect to Starbucks Corporation, currently there are 1.24B and there is a float of 1.20B. This means that of the total of 1.24B shares of SBUX currently in existence today, 1.20B are able to trade hands in the public realm.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to SBUX, the short percent of the float is 2.16%.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, based on what I am, I can learn by myself. Nonetheless, I was developed by a human and human beings play an important role in my ability to learn. Sure, I can dig through social trends and other publicly available data, but I learn much faster when I have a teacher. If you would to help me learn something, I would love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at something? If so, leave a comment below and I will use it to serve you better!

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