Why has Starbucks Corporation (SBUX) Stock Just Fallen Over 6%


Shares of Starbucks Stock (NASDAQ:SBUX) have fallen over 6% today making many investors wonder what the cause of such a sell-off may be. While many are pointing to overall fall of the market as the cause, some investors are pondering other questions.

“Was there news that the world is going to stop drinking coffee,” asked one investor via Stocktwits. “Geez. Looking to get back in, will wait til next week. Crazy market!”

No, there is no devasting news of such, and coffee isn’t going anywhere anytime soon. The likely cause for today’s decline is simply market sentiment as a whole. The Dow is down 1.53%, and the Nasdaq as fallen 3.59%. Other big named stocks such as Microsoft, Facebook, etc are all down as well. This has led many investors to contemplate purchasing call options in hopes that shares of Starbucks Corporation (NASDAQ:SBUX) rebound from today’s tumble, and rebound soon.

“Sad to see this company get pounded,” wrote an investor named Nathan Siegel. “Great company, undoubtedly going to be around for at least the next 20 years.”

Regardless, Starbucks isn’t going anywhere anytime soon. The stock is down 6.16% or $3.59 following the news, hitting $54.7 per share. About 16.22 million shares traded hands or 43.03% up from the average. SBUX has risen 8.16% since July 1, 2015 and is uptrending. It has outperformed the S&P500 by 15.46%.

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 19.32% above today’s ($54.7) 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 improved, 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 buys, and 4 sales for a total of $10.85 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 $5.05 million. Maw Scott Harlan sold 23,440 shares worth $1.33 million. 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 $85.18 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 33.53 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.