Adage Capital Partners GP L.L.C. Boosts Stake in Starbucks Corporation $SBUX

Key Points

• Adage Capital Partners GP L.L.C. increased its Starbucks holdings by 5.2% in Q1, acquiring an additional 50,853 shares to reach 1,035,909 shares total.
• Starbucks recently reported earnings of $0.50 per share, which fell short of estimates, while revenue reached $9.46 billion, surpassing expectations.
• A dividend of $0.61 per share was paid to shareholders on August 29th, representing a 2.7% yield based on an annualized payout of $2.44.

Adage Capital Partners GP L.L.C. raised its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 5.2% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,035,909 shares of the coffee company's stock after acquiring an additional 50,853 shares during the quarter. Adage Capital Partners GP L.L.C. owned approximately 0.09% of Starbucks worth $101,612,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also made changes to their positions in SBUX. Napa Wealth Management acquired a new stake in shares of Starbucks in the 1st quarter valued at about $1,435,000. Vanguard Capital Wealth Advisors acquired a new stake in shares of Starbucks in the 4th quarter valued at about $285,000. Czech National Bank boosted its position in shares of Starbucks by 6.2% in the 1st quarter. Czech National Bank now owns 260,898 shares of the coffee company's stock valued at $25,591,000 after purchasing an additional 15,132 shares during the period. Personal CFO Solutions LLC boosted its position in shares of Starbucks by 125.5% in the 1st quarter. Personal CFO Solutions LLC now owns 9,254 shares of the coffee company's stock valued at $908,000 after purchasing an additional 5,151 shares during the period. Finally, First Manhattan CO. LLC. boosted its position in shares of Starbucks by 33.1% in the 1st quarter. First Manhattan CO. LLC. now owns 446,294 shares of the coffee company's stock valued at $43,777,000 after purchasing an additional 111,015 shares during the period. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks Price Performance

Starbucks stock traded down $1.58 during mid-day trading on Friday, hitting $85.43. 9,037,892 shares of the company were exchanged, compared to its average volume of 7,728,275. The business's 50 day simple moving average is $91.54 and its two-hundred day simple moving average is $91.83. The company has a market capitalization of $97.11 billion, a P/E ratio of 36.82, a PEG ratio of 5.18 and a beta of 1.00. Starbucks Corporation has a 12-month low of $75.50 and a 12-month high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The coffee company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.64 by ($0.14). The business had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.29 billion. Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%. Starbucks's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.93 EPS. Equities research analysts predict that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 15th were given a $0.61 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.9%. Starbucks's payout ratio is currently 105.17%.

Analyst Upgrades and Downgrades

Several analysts have commented on SBUX shares. Evercore ISI reaffirmed an "outperform" rating and set a $105.00 price objective (up from $95.00) on shares of Starbucks in a research note on Tuesday, June 24th. JPMorgan Chase & Co. upped their price objective on Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. UBS Group increased their target price on Starbucks from $95.00 to $100.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. Sanford C. Bernstein increased their target price on Starbucks from $90.00 to $100.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 2nd. Finally, BMO Capital Markets reissued an "outperform" rating and set a $115.00 target price (up from $100.00) on shares of Starbucks in a research note on Wednesday, July 30th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $104.40.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.