Charles Schwab Investment Management Inc. Has $823.97 Million Stock Holdings in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Charles Schwab Investment Management Inc. has reduced its stake in Starbucks Corporation by 5.4% during the first quarter, bringing its holdings down to approximately 8.4 million shares worth $823.97 million.
• Vanguard Group increased its holdings in Starbucks by 0.9%, now owning over 112 million shares valued at nearly $11 billion, highlighting significant institutional interest in the coffee company.
• Starbucks announced a quarterly dividend of $0.61 per share, which translates to an annual yield of 2.7%, despite a dividend payout ratio exceeding 105%.

Charles Schwab Investment Management Inc. reduced its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 5.4% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 8,400,113 shares of the coffee company's stock after selling 479,634 shares during the quarter. Charles Schwab Investment Management Inc. owned about 0.74% of Starbucks worth $823,967,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Starbucks by 0.9% in the first quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company's stock worth $10,991,923,000 after purchasing an additional 953,361 shares in the last quarter. Capital World Investors grew its position in shares of Starbucks by 20.1% during the 4th quarter. Capital World Investors now owns 54,924,230 shares of the coffee company's stock worth $5,011,796,000 after buying an additional 9,174,682 shares during the period. Northern Trust Corp increased its stake in shares of Starbucks by 4.6% in the 4th quarter. Northern Trust Corp now owns 13,573,337 shares of the coffee company's stock valued at $1,238,567,000 after acquiring an additional 600,151 shares in the last quarter. Capital International Investors increased its stake in shares of Starbucks by 2.7% in the 4th quarter. Capital International Investors now owns 10,191,918 shares of the coffee company's stock valued at $929,898,000 after acquiring an additional 267,736 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its position 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 valued at $943,948,000 after acquiring an additional 3,589,537 shares during the period. 72.29% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have commented on SBUX. Evercore ISI restated an "outperform" rating and issued a $105.00 price target (up from $95.00) on shares of Starbucks in a report on Tuesday, June 24th. Jefferies Financial Group downgraded Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price for the company. in a research note on Thursday, July 17th. Morgan Stanley reaffirmed an "overweight" rating and issued a $103.00 target price (up from $95.00) on shares of Starbucks in a research report on Wednesday, July 30th. Barclays increased their price target on Starbucks from $106.00 to $115.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, TD Cowen raised their price objective on Starbucks from $90.00 to $95.00 and gave the company a "hold" rating in a research note on Wednesday, July 30th. Four investment analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have issued a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $101.27.

Starbucks Stock Up 2.3%

SBUX opened at $91.02 on Friday. Starbucks Corporation has a twelve month low of $74.75 and a twelve month high of $117.46. The company's 50-day moving average price is $92.10 and its two-hundred day moving average price is $94.45. The stock has a market cap of $103.46 billion, a price-to-earnings ratio of 39.23, a PEG ratio of 5.07 and a beta of 1.02.

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

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be issued a $0.61 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.7%. Starbucks's dividend payout ratio (DPR) is 105.17%.

Starbucks 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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