Federated Hermes Inc. Increases Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Federated Hermes Inc. significantly boosted its stake in Starbucks by 1,178.2%, acquiring an additional 62,740 shares, bringing its total shares to 68,065, valued at approximately $6.68 million.
• Starbucks reported a quarterly EPS of $0.50, missing the consensus estimate of $0.64, while the company's revenue reached $9.46 billion, exceeding forecasts.
• The company declared a quarterly dividend of $0.61 per share, payable on August 29th, with an annualized dividend yield of 2.8%.

Federated Hermes Inc. increased its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 1,178.2% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 68,065 shares of the coffee company's stock after buying an additional 62,740 shares during the period. Federated Hermes Inc.'s holdings in Starbucks were worth $6,676,000 at the end of the most recent reporting period.

Other large investors also recently made changes to their positions in the company. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Starbucks in the 4th quarter valued at about $25,000. Hughes Financial Services LLC acquired a new position in Starbucks during the 1st quarter valued at about $27,000. Kapitalo Investimentos Ltda acquired a new position in Starbucks during the 4th quarter valued at about $32,000. Ball & Co Wealth Management Inc. acquired a new position in Starbucks during the 4th quarter valued at about $41,000. Finally, Accredited Wealth Management LLC acquired a new position in Starbucks during the 4th quarter valued at about $44,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have issued reports on SBUX. Wall Street Zen downgraded Starbucks from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. UBS Group lifted their price target on Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a research note on Wednesday. Evercore ISI reiterated an "outperform" rating and set a $105.00 price target (up previously from $95.00) on shares of Starbucks in a research note on Tuesday, June 24th. Morgan Stanley reiterated an "overweight" rating and set a $103.00 price target (up previously from $95.00) on shares of Starbucks in a research note on Wednesday. Finally, Sanford C. Bernstein lifted their price target on Starbucks from $90.00 to $100.00 and gave the company an "outperform" rating in a research note on Wednesday, July 2nd. Four analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have assigned a buy rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $101.27.

Starbucks Stock Performance

SBUX stock traded down $2.30 during midday trading on Friday, reaching $86.86. 16,215,272 shares of the company's stock traded hands, compared to its average volume of 11,091,786. The company has a 50-day moving average price of $91.73 and a two-hundred day moving average price of $94.59. Starbucks Corporation has a 52 week low of $72.72 and a 52 week high of $117.46. The firm has a market capitalization of $98.73 billion, a PE ratio of 37.44, a price-to-earnings-growth ratio of 4.95 and a beta of 1.02.

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

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be given a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, August 15th. Starbucks's payout ratio 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.