Deutsche Bank AG Reduces Stake in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Deutsche Bank AG has reduced its stake in Starbucks Corporation by 23.6%, selling 848,578 shares and owning approximately 2.75 million shares worth about $269.8 million.
• Wall Street analysts have varying outlooks on Starbucks, with a consensus rating of "Hold" and an average price target of $101.27, while some analysts raised their price targets from $95.00 to as high as $105.00.
• Starbucks reported a net margin of 7.18% and a lower than expected earnings per share (EPS) of $0.50 for the last quarter, missing the consensus estimate of $0.64.

Deutsche Bank AG lessened its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 23.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 2,750,801 shares of the coffee company's stock after selling 848,578 shares during the period. Deutsche Bank AG owned 0.24% of Starbucks worth $269,826,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also added to or reduced their stakes in the company. Capital World Investors grew its holdings 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 purchasing an additional 9,174,682 shares in the last quarter. Jennison Associates LLC acquired a new stake in shares of Starbucks during the 1st quarter worth $817,759,000. 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 in the last quarter. Capital Research Global Investors boosted its stake in Starbucks by 167.6% in the fourth quarter. Capital Research Global Investors now owns 5,690,198 shares of the coffee company's stock valued at $519,230,000 after buying an additional 3,563,942 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in Starbucks by 218.7% in the first quarter. Massachusetts Financial Services Co. MA now owns 4,552,921 shares of the coffee company's stock valued at $446,596,000 after buying an additional 3,124,533 shares in the last quarter. Institutional investors own 72.29% of the company's stock.

Analyst Ratings Changes

Several research firms recently weighed in on SBUX. Bank of America raised their price objective on Starbucks from $101.00 to $110.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Guggenheim raised their price objective on Starbucks from $79.00 to $90.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Stifel Nicolaus raised their price objective on Starbucks from $92.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Evercore ISI reaffirmed an "outperform" rating and issued a $105.00 price objective (up from $95.00) on shares of Starbucks in a research note on Tuesday, June 24th. Finally, Barclays raised their price objective on Starbucks from $106.00 to $115.00 and gave the company an "overweight" rating in a research note 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. Based on data from MarketBeat, Starbucks currently has an average rating of "Hold" and a consensus target price of $101.27.

Starbucks Stock Performance

Shares of SBUX traded up $1.10 on Friday, reaching $92.12. The stock had a trading volume of 8,032,266 shares, compared to its average volume of 11,577,803. The firm has a market capitalization of $104.71 billion, a price-to-earnings ratio of 39.71, a price-to-earnings-growth ratio of 5.25 and a beta of 1.02. The company has a 50-day simple moving average of $92.27 and a 200-day simple moving average of $94.39. Starbucks Corporation has a 12-month low of $74.75 and a 12-month high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The coffee company reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.64 by ($0.14). Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%. The company had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.29 billion. During the same period last year, the business earned $0.93 EPS. The firm's quarterly revenue was up 3.8% on a year-over-year basis. On average, analysts expect that Starbucks Corporation will post 2.99 EPS 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 issued a $0.61 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.6%. Starbucks's dividend payout ratio (DPR) is presently 105.17%.

About Starbucks

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.