Starbucks Corp. (NASDAQ: SBUX)’s stock price has gone decline by -1.14 in comparison to its previous close of 85.90, however, the company has experienced a -2.22% decrease in its stock price over the last five trading days. The Motley Fool reported 2024-04-14 that Nvidia’s lead in AI infrastructure makes it a tempting target for growth-oriented investors. Caffeinated goodness from Starbucks just might still be able to keep investors hooked for the future.
Is It Worth Investing in Starbucks Corp. (NASDAQ: SBUX) Right Now?
The price-to-earnings ratio for Starbucks Corp. (NASDAQ: SBUX) is above average at 22.71x. The 36-month beta value for SBUX is also noteworthy at 0.98. There are mixed opinions on the stock, with 14 analysts rating it as a “buy,” 10 rating it as “overweight,” 9 rating it as “hold,” and 0 rating it as “sell.”
The public float for SBUX is 1.10B, and at present, short sellers hold a 1.43% of that float. The average trading volume of SBUX on April 15, 2024 was 8.53M shares.
SBUX’s Market Performance
SBUX’s stock has seen a -2.22% decrease for the week, with a -7.30% drop in the past month and a -8.63% fall in the past quarter. The volatility ratio for the week is 1.36%, and the volatility levels for the past 30 days are at 1.39% for Starbucks Corp.. The simple moving average for the past 20 days is -5.30% for SBUX’s stock, with a -11.42% simple moving average for the past 200 days.
Analysts’ Opinion of SBUX
Many brokerage firms have already submitted their reports for SBUX stocks, with Morgan Stanley repeating the rating for SBUX by listing it as a “Overweight.” The predicted price for SBUX in the upcoming period, according to Morgan Stanley is $115 based on the research report published on April 12, 2024 of the current year 2024.
Robert W. Baird, on the other hand, stated in their research note that they expect to see SBUX reach a price target of $100, previously predicting the price at $106. The rating they have provided for SBUX stocks is “Neutral” according to the report published on March 18th, 2024.
BTIG Research gave a rating of “Buy” to SBUX, setting the target price at $115 in the report published on January 31st of the current year.
SBUX Trading at -7.75% from the 50-Day Moving Average
After a stumble in the market that brought SBUX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.46% of loss for the given period.
Volatility was left at 1.39%, however, over the last 30 days, the volatility rate increased by 1.36%, as shares sank -7.35% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.72% lower at present.
During the last 5 trading sessions, SBUX fell by -2.22%, which changed the moving average for the period of 200-days by -13.98% in comparison to the 20-day moving average, which settled at $89.33. In addition, Starbucks Corp. saw -11.55% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SBUX starting from KELLY SARA, who sale 250 shares at the price of $92.63 back on Mar 21 ’24. After this action, KELLY SARA now owns 46,924 shares of Starbucks Corp., valued at $23,158 using the latest closing price.
KELLY SARA, the evp, chief partner officer of Starbucks Corp., sale 250 shares at $93.86 during a trade that took place back on Feb 21 ’24, which means that KELLY SARA is holding 46,963 shares at $23,465 based on the most recent closing price.
Stock Fundamentals for SBUX
Current profitability levels for the company are sitting at:
- 0.17 for the present operating margin
- 0.28 for the gross margin
The net margin for Starbucks Corp. stands at 0.12. The total capital return value is set at 0.31.
Based on Starbucks Corp. (SBUX), the company’s capital structure generated 1.54 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at -2.84. The interest coverage ratio of the stock is 10.89.
Currently, EBITDA for the company is 7.33 billion with net debt to EBITDA at 2.82. When we switch over and look at the enterprise to sales, we see a ratio of 3.21. The receivables turnover for the company is 31.49for trailing twelve months and the total asset turnover is 1.26. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.70.
Conclusion
In summary, Starbucks Corp. (SBUX) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
