Callahan Advisors LLC Lowers Position in Starbucks Corporation $SBUX

Key Points

• Callahan Advisors LLC significantly reduced its stake in Starbucks Corporation by 43.0%, now holding 18,023 shares valued at approximately $1.65 million.
• Starbucks declared a quarterly dividend of $0.62, up from the previous quarter's $0.61, reflecting a dividend yield of 3.0%.
• The company reported earnings of $0.50 per share for its latest quarter, falling short of analyst expectations, while its revenues increased by 3.8% year-over-year.

Callahan Advisors LLC lowered its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 43.0% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 18,023 shares of the coffee company's stock after selling 13,605 shares during the period. Callahan Advisors LLC's holdings in Starbucks were worth $1,651,000 at the end of the most recent reporting period.

Other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Starbucks by 0.9% during the first quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company's stock valued at $10,991,923,000 after acquiring an additional 953,361 shares during the period. Wellington Management Group LLP lifted its stake in shares of Starbucks by 22.3% in the 1st quarter. Wellington Management Group LLP now owns 19,414,472 shares of the coffee company's stock valued at $1,904,366,000 after purchasing an additional 3,545,655 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Starbucks during the 1st quarter worth about $1,379,619,000. Goldman Sachs Group Inc. grew its holdings in shares of Starbucks by 59.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 9,623,282 shares of the coffee company's stock worth $943,948,000 after purchasing an additional 3,589,537 shares during the period. Finally, Jennison Associates LLC acquired a new stake in Starbucks during the 1st quarter worth approximately $817,759,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Up 2.1%

Shares of NASDAQ SBUX opened at $82.86 on Thursday. Starbucks Corporation has a fifty-two week low of $75.50 and a fifty-two week high of $117.46. The business has a 50 day moving average price of $85.99 and a two-hundred day moving average price of $87.67. The firm has a market cap of $94.19 billion, a PE ratio of 35.72, a price-to-earnings-growth ratio of 4.01 and a beta of 1.01.

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

Starbucks Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 14th will be issued a $0.62 dividend. This is a boost from Starbucks's previous quarterly dividend of $0.61. The ex-dividend date of this dividend is Friday, November 14th. This represents a $2.48 annualized dividend and a dividend yield of 3.0%. Starbucks's dividend payout ratio (DPR) is presently 105.17%.

Wall Street Analysts Forecast Growth

Several research firms have commented on SBUX. Cowen reissued a "hold" rating on shares of Starbucks in a research report on Tuesday, June 24th. Morgan Stanley reiterated an "overweight" rating and set a $103.00 target price (up from $95.00) on shares of Starbucks in a report on Wednesday, July 30th. Zacks Research raised Starbucks from a "strong sell" rating to a "hold" rating in a research report on Wednesday, October 1st. JPMorgan Chase & Co. increased their price objective on shares of Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Finally, Loop Capital set a $165.00 price objective on shares of Starbucks in a research note on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Starbucks presently has a consensus rating of "Moderate Buy" and a consensus price target of $102.96.

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.

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