Ceredex Value Advisors LLC Raises Holdings in Starbucks Corporation $SBUX

Key Points

• Ceredex Value Advisors LLC increased its stake in Starbucks Corporation by 23.3%, owning 430,699 shares worth $42.25 million as of the latest SEC filing.
• Starbucks reported quarterly earnings of $0.50 per share, missing the consensus estimate by $0.14, but its revenue of $9.46 billion exceeded expectations of $9.29 billion.
• The company announced a quarterly dividend of $0.61 per share, set to be paid on August 29th, with a dividend yield of 2.8%.

Ceredex Value Advisors LLC lifted its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 23.3% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 430,699 shares of the coffee company's stock after buying an additional 81,290 shares during the quarter. Ceredex Value Advisors LLC's holdings in Starbucks were worth $42,247,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. FORA Capital LLC purchased a new position in Starbucks during the first quarter worth approximately $3,997,000. Caisse DE Depot ET Placement DU Quebec boosted its position in Starbucks by 40.0% during the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 726,702 shares of the coffee company's stock worth $71,282,000 after purchasing an additional 207,502 shares in the last quarter. Soros Capital Management LLC boosted its position in Starbucks by 292.6% during the first quarter. Soros Capital Management LLC now owns 26,070 shares of the coffee company's stock worth $2,557,000 after purchasing an additional 19,430 shares in the last quarter. Freedom Investment Management Inc. purchased a new position in Starbucks during the first quarter worth approximately $299,000. Finally, RPg Family Wealth Advisory LLC purchased a new position in Starbucks during the first quarter worth approximately $240,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Stock Performance

NASDAQ:SBUX opened at $85.81 on Tuesday. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46. The stock has a market cap of $97.54 billion, a PE ratio of 36.99, a P/E/G ratio of 5.25 and a beta of 1.02. The stock has a 50 day moving average price of $92.34 and a 200 day moving average price of $93.10.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The coffee company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.14). The company had revenue of $9.46 billion during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same period in the prior year, the business posted $0.93 EPS. As a group, analysts predict that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

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 paid a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.8%. Starbucks's dividend payout ratio (DPR) is 105.17%.

Wall Street Analysts Forecast Growth

SBUX has been the subject of a number of research analyst reports. UBS Group increased their target price on Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a report on Wednesday, July 30th. JPMorgan Chase & Co. increased their target price on Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Morgan Stanley reissued an "overweight" rating and set a $103.00 target price (up previously from $95.00) on shares of Starbucks in a report on Wednesday, July 30th. Wall Street Zen cut Starbucks from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Finally, Cowen reissued a "hold" rating on shares of Starbucks in a report on Tuesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Starbucks presently has an average rating of "Moderate Buy" and an average price target 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.

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