Bank of Nova Scotia Has $16.35 Million Stock Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• The Bank of Nova Scotia has reduced its stock holdings in Starbucks Corporation by 16.4%, bringing its total shares to 166,707, valued at approximately $16.35 million.
• Despite the decrease in holdings, other institutional investors like TrinityPoint Wealth LLC and Gamco Investors INC. have increased their positions in Starbucks during the fourth quarter.
• Starbucks recently reported earnings per share (EPS) of $0.50, missing expectations, while also announcing a quarterly dividend of $0.61 per share with a payout ratio of 105.17%.

Bank of Nova Scotia cut its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 16.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 166,707 shares of the coffee company's stock after selling 32,753 shares during the quarter. Bank of Nova Scotia's holdings in Starbucks were worth $16,352,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. Capital World Investors grew its position in shares of Starbucks by 20.1% in the 4th quarter. Capital World Investors now owns 54,924,230 shares of the coffee company's stock valued at $5,011,796,000 after purchasing an additional 9,174,682 shares during the period. Jennison Associates LLC bought a new position in shares of Starbucks during the 1st quarter worth approximately $817,759,000. FMR LLC grew its stake in shares of Starbucks by 27.0% during the 4th quarter. FMR LLC now owns 25,128,649 shares of the coffee company's stock worth $2,292,989,000 after acquiring an additional 5,348,790 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Starbucks by 167.6% during the 4th quarter. Capital Research Global Investors now owns 5,690,198 shares of the coffee company's stock worth $519,230,000 after acquiring an additional 3,563,942 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA grew its stake in shares of Starbucks by 218.7% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 4,552,921 shares of the coffee company's stock worth $446,596,000 after acquiring an additional 3,124,533 shares in the last quarter. 72.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

SBUX has been the subject of several research reports. Barclays raised their price target on shares of Starbucks from $106.00 to $115.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. The Goldman Sachs Group reissued a "neutral" rating and issued a $95.00 price objective (up previously from $85.00) on shares of Starbucks in a report on Thursday, June 12th. Guggenheim increased their price objective on Starbucks from $79.00 to $90.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. Wall Street Zen downgraded Starbucks from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Finally, TD Securities reaffirmed a "hold" rating and set a $90.00 price target on shares of Starbucks in a report on Monday, June 23rd. Four analysts have rated the stock with a sell rating, eleven have issued a hold rating and fifteen have assigned a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $101.27.

Starbucks Stock Performance

Shares of NASDAQ SBUX traded up $0.42 during mid-day trading on Tuesday, reaching $90.20. The company had a trading volume of 6,989,938 shares, compared to its average volume of 11,451,248. Starbucks Corporation has a one year low of $73.84 and a one year high of $117.46. The firm has a market cap of $102.53 billion, a price-to-earnings ratio of 38.88, a PEG ratio of 5.12 and a beta of 1.02. The business's 50-day simple moving average is $91.83 and its 200 day simple moving average is $94.55.

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

Starbucks Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be given a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Friday, August 15th. Starbucks's payout ratio is currently 105.17%.

About Starbucks

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.