Coronation Fund Managers Ltd. Lowers Stock Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Coronation Fund Managers Ltd. significantly reduced its stake in Starbucks, selling 28,981 shares and holding only 2,313 shares after a 92.6% cut, valued at approximately $227,000.
• Starbucks reported earnings of $0.50 per share in its last quarterly results, falling short of analysts' expectations of $0.64, although it achieved revenue of $9.46 billion, surpassing estimates.
• The company announced a quarterly dividend of $0.61 payable on August 29th, representing an annualized dividend yield of 2.6% despite a high dividend payout ratio of 105.17%.

Coronation Fund Managers Ltd. cut its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 92.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,313 shares of the coffee company's stock after selling 28,981 shares during the period. Coronation Fund Managers Ltd.'s holdings in Starbucks were worth $227,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the business. MSA Advisors LLC grew its position in shares of Starbucks by 0.7% during the first quarter. MSA Advisors LLC now owns 350,557 shares of the coffee company's stock worth $34,386,000 after acquiring an additional 2,300 shares during the last quarter. Polen Capital Management LLC purchased a new position in Starbucks in the 1st quarter valued at $503,539,000. AFT Forsyth & Company Inc. grew its position in Starbucks by 6.2% in the 1st quarter. AFT Forsyth & Company Inc. now owns 8,615 shares of the coffee company's stock valued at $845,000 after buying an additional 500 shares during the last quarter. Pandora Wealth Inc. purchased a new position in Starbucks in the 1st quarter valued at $92,000. Finally, Sierra Summit Advisors LLC grew its position in Starbucks by 6.5% in the 1st quarter. Sierra Summit Advisors LLC now owns 10,548 shares of the coffee company's stock valued at $1,035,000 after buying an additional 648 shares during the last quarter. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Price Performance

Shares of Starbucks stock opened at $92.12 on Friday. Starbucks Corporation has a one year low of $74.75 and a one year high of $117.46. The firm has a market capitalization of $104.71 billion, a price-to-earnings ratio of 39.71, a PEG ratio of 5.25 and a beta of 1.02. The business has a 50-day simple moving average of $92.27 and a 200 day simple moving average of $94.39.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly 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). The company had revenue of $9.46 billion for 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% on a year-over-year basis. During the same quarter last year, the firm posted $0.93 EPS. On average, sell-side analysts expect that Starbucks Corporation will post 2.99 EPS for the current year.

Starbucks Dividend Announcement

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 paid a $0.61 dividend. The ex-dividend date is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.6%. Starbucks's dividend payout ratio is presently 105.17%.

Analyst Ratings Changes

A number of research firms recently weighed in on SBUX. BMO Capital Markets reiterated an "outperform" rating and issued a $115.00 price objective (up from $100.00) on shares of Starbucks in a research report on Wednesday, July 30th. Bank of America boosted their target price on shares of Starbucks from $101.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. CICC Research assumed coverage on shares of Starbucks in a research report on Monday, June 30th. They set an "outperform" rating and a $100.00 target price on the stock. JPMorgan Chase & Co. boosted their target price on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Finally, Morgan Stanley restated an "overweight" rating and set a $103.00 target price (up from $95.00) on shares of Starbucks in a research report on Wednesday, July 30th. Four investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fifteen have issued a buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $101.27.

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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