Starbucks Corp (NASDAQ: SBUX)’s stock price has plunge by 1.37relation to previous closing price of 92.25. Nevertheless, the company has seen a 1.00% surge in its stock price over the last five trading sessions. wsj.com reported 2025-01-13 that The coffee giant is reversing a policy that had allowed open access to its cafes, in a push to improve store environments.
Is It Worth Investing in Starbucks Corp (NASDAQ: SBUX) Right Now?
Starbucks Corp (NASDAQ: SBUX) has a price-to-earnings ratio of 28.28x that is above its average ratio. Additionally, the 36-month beta value for SBUX is 0.98. There are mixed opinions on the stock, with 10 analysts rating it as a “buy,” 7 rating it as “overweight,” 14 rating it as “hold,” and 3 rating it as “sell.”
The public float for SBUX is 1.11B and currently, short sellers hold a 2.53% ratio of that float. The average trading volume of SBUX on January 14, 2025 was 7.98M shares.
SBUX’s Market Performance
SBUX’s stock has seen a 1.00% increase for the week, with a -4.74% drop in the past month and a -0.39% fall in the past quarter. The volatility ratio for the week is 1.84%, and the volatility levels for the past 30 days are at 2.12% for Starbucks Corp The simple moving average for the past 20 days is 1.67% for SBUX’s stock, with a 5.99% simple moving average for the past 200 days.
Analysts’ Opinion of SBUX
Many brokerage firms have already submitted their reports for SBUX stocks, with RBC Capital Mkts repeating the rating for SBUX by listing it as a “Outperform.” The predicted price for SBUX in the upcoming period, according to RBC Capital Mkts is $115 based on the research report published on November 15, 2024 of the previous year 2024.
Redburn Atlantic, on the other hand, stated in their research note that they expect to see SBUX reach a price target of $77, previously predicting the price at $84. The rating they have provided for SBUX stocks is “Sell” according to the report published on November 13th, 2024.
Morgan Stanley gave a rating of “Overweight” to SBUX, setting the target price at $115 in the report published on October 17th of the previous year.
SBUX Trading at -2.97% 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 -9.49% of loss for the given period.
Volatility was left at 2.12%, however, over the last 30 days, the volatility rate increased by 1.84%, as shares sank -4.99% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.98% lower at present.
During the last 5 trading sessions, SBUX rose by +1.00%, which changed the moving average for the period of 200-days by +3.49% in comparison to the 20-day moving average, which settled at $91.97. In addition, Starbucks Corp saw 2.48% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SBUX starting from KELLY SARA, who sale 19,102 shares at the price of $101.37 back on Nov 29 ’24. After this action, KELLY SARA now owns 46,115 shares of Starbucks Corp, valued at $1,936,370 using the latest closing price.
KELLY SARA, the Officer of Starbucks Corp, proposed sale 19,102 shares at $101.37 during a trade that took place back on Nov 29 ’24, which means that KELLY SARA is holding shares at $1,936,370 based on the most recent closing price.
Stock Fundamentals for SBUX
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.27 for the gross margin
The net margin for Starbucks Corp stands at 0.1. The total capital return value is set at 0.24.
Based on Starbucks Corp (SBUX), the company’s capital structure generated 1.78 points at debt to capital in total, while cash flow to debt ratio is standing at 0.36. The debt to equity ratio resting at -2.29. The interest coverage ratio of the stock is 9.62.
Currently, EBITDA for the company is 7.12 billion with net debt to EBITDA at 3.16. When we switch over and look at the enterprise to sales, we see a ratio of 3.55. The receivables turnover for the company is 29.8for trailing twelve months and the total asset turnover is 1.15. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.75.
Conclusion
In conclusion, Starbucks Corp (SBUX) has seen mixed performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others rating it 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.
