Will Starbucks Corporation (NASDAQ:SBUX) Turn to Beer and Wine Sales to Help Stock Continue Soaring in 2016?


Starbucks Corporation (NASDAQ:SBUX) has had one heck of a year from an investor’s standpoint. The stock seemed to hit new 52-week highs on a consistent basis, and overall it went from just $41.06 per share to start the year, all the way up to a high of $64 in October. The question that many investors are asking is, “Will this upward trend continue in 2016?”

Surely no one knows that answer, but if they do want to continue to grow, Starbucks Corporation (NASDAQ:SBUX) may need to expand beyond tea and coffee to adult beverages such as beer and wine. The company already offers a “Starbucks Evenings” menu in select metropolitan areas, and just recently debuted this idea in four select Charleston, South Carolina locations.

Could nationwide offerings of beer, wine and small plates be coming to other Starbucks Corporation (NASDAQ:SBUX) locations in 2016? No one knows, but certainly it could spell mammoth expansion for the company in the coming year.

The stock is up 1.49% or $0.9, hitting $61.09 per share. About 2.58 million shares traded hands. SBUX has risen 18.39% since May 26, 2015 and is uptrending. It has outperformed the S&P500 by 20.66%.

From a total of 8 analysts covering Starbucks Corporation (NASDAQ:SBUX) stock, 6 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $71 while the lowest target price is $59. The mean of all analyst targets is $65.27 which is 6.84% above today’s ($61.09) stock price. Starbucks Corporation was the topic of 13 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. BMO Capital Markets maintained shares on October 30 with a “Outperform” rating. Zacks upgraded shares to a”Hold” rating and a $59 target share price in their report from an August 24. RBC Capital Markets maintained SBUX stock in a recent report from October 30 with a “Outperform” rating. Finally, Vetr downgraded the stock to a “Buy” rating in a report they issued on a September 3.

The institutional sentiment increased to 1.24 in Q2 2015. It’s up 0.28, from 0.96 in 2015Q2. The ratio is positive, as 41 funds sold all their Starbucks Corporation shares they owned while 439 reduced their positions. 115 funds bought stakes while 482 increased their total positions. Institutions now own 941.87 million shares which is 54.43% less than the previous share count of 2.07 billion in 2015Q2.

Pacifica Capital Investments Llc holds 20.74% of its total portfolio in Starbucks Corporation, equating to 559,051 shares. R.H. Dinel Investment Counsel Inc. owns 162,300 shares representing 9.63% of their total US portfolio. Moreover, Mader & Shannon Wealth Management Inc. has 7.57% of their total portfolio invested in the company, equating to 107,008 shares. The Maryland-based Park Circle Co has a total of 7.39% of their portfolio invested in the stock. Polen Capital Management Llc, a Florida-based fund reported 6.34 million shares owned.

Since March 16, 2015, the stock had 0 insider purchases, and 7 selling transactions for a total of $83.90 million in net activity. Teruel Javier G sold 61,534 shares worth $3.38 million. Shennan James G Jr sold 19,724 shares worth $1.09M. Weatherup Craig sold 87,654 shares worth $5.05M. Maw Scott Harlan sold 23,440 shares worth $1.33M. The insider Schultz Howard D sold 39,819 shares worth $2.36M.

Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The company has a market cap of $89.79 billion. The Firm purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It has 33.52 P/E ratio. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts.