Cullen Frost Bankers Inc. Boosts Position in Starbucks Corporation $SBUX

Key Points

• Cullen Frost Bankers Inc. boosted its position in Starbucks Corporation by 69.2% in Q2, acquiring an additional 48,869 shares for a total holding valued at approximately $10.9 million.
• Starbucks recently announced a quarterly dividend increase to $0.62 per share, resulting in a 2.9% yield, with the payment scheduled for November 28th.
• Despite a missed earnings estimate of $0.64 by reporting $0.50 EPS, Starbucks's quarterly revenue of $9.46 billion exceeded expectations and marked a 3.8% year-over-year increase.

Cullen Frost Bankers Inc. increased its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 69.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 119,485 shares of the coffee company's stock after buying an additional 48,869 shares during the period. Cullen Frost Bankers Inc.'s holdings in Starbucks were worth $10,948,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Narwhal Capital Management increased its position in Starbucks by 39.6% during the 2nd quarter. Narwhal Capital Management now owns 32,738 shares of the coffee company's stock valued at $3,000,000 after purchasing an additional 9,282 shares during the period. PUREfi Wealth LLC purchased a new position in Starbucks during the 2nd quarter valued at about $286,000. Napa Wealth Management purchased a new position in Starbucks during the 1st quarter valued at about $1,435,000. Morningstar Investment Management LLC purchased a new position in Starbucks during the 2nd quarter valued at about $653,000. Finally, Pegasus Asset Management Inc. purchased a new position in Starbucks during the 2nd quarter valued at about $1,289,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Trading Down 0.5%

NASDAQ:SBUX opened at $85.50 on Thursday. The company has a market cap of $97.19 billion, a PE ratio of 36.85, a P/E/G ratio of 4.31 and a beta of 1.01. Starbucks Corporation has a twelve month low of $75.50 and a twelve month high of $117.46. The company's 50 day moving average is $85.25 and its two-hundred day moving average is $87.39.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results 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 analysts' expectations of $9.29 billion. Starbucks had a negative return on equity of 36.23% and a net margin of 7.18%.The firm's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.93 EPS. As a group, analysts expect that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 14th will be given a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, November 14th. This represents a $2.48 annualized dividend and a yield of 2.9%. This is a boost from Starbucks's previous quarterly dividend of $0.61. Starbucks's payout ratio is presently 105.17%.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. BMO Capital Markets reissued an "outperform" rating and set a $115.00 target price (up previously from $100.00) on shares of Starbucks in a research report on Wednesday, July 30th. Jefferies Financial Group downgraded shares of Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price on the stock. in a research report on Thursday, July 17th. Sanford C. Bernstein raised their price target on shares of Starbucks from $90.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, July 2nd. Royal Bank Of Canada raised their price target on shares of Starbucks from $100.00 to $110.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Finally, BTIG Research set a $105.00 price target on shares of Starbucks in a report on Thursday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Starbucks currently has an average rating of "Moderate Buy" and an average target price of $101.80.

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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