First Pacific Financial Raises Stock Holdings in Starbucks Corporation $SBUX

Key Points

• First Pacific Financial significantly increased its stake in Starbucks by 527.4%, owning 4,047 shares valued at $371,000 as of its latest SEC filing.
• Starbucks announced a quarterly dividend increase to $0.62 per share, representing a yield of 2.9% and a dividend payout ratio of 105.17%.
• Despite recent challenges, analysts have set a consensus target price for Starbucks stock at $104.00, indicating a generally positive outlook with a "Moderate Buy" rating.

First Pacific Financial raised its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 527.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 4,047 shares of the coffee company's stock after buying an additional 3,402 shares during the quarter. First Pacific Financial's holdings in Starbucks were worth $371,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of Starbucks by 0.9% in the first quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company's stock valued at $10,991,923,000 after purchasing an additional 953,361 shares during the period. Wellington Management Group LLP increased its holdings in shares of Starbucks by 22.3% in the first quarter. Wellington Management Group LLP now owns 19,414,472 shares of the coffee company's stock valued at $1,904,366,000 after purchasing an additional 3,545,655 shares during the period. Nuveen LLC acquired a new position in shares of Starbucks in the first quarter valued at approximately $1,379,619,000. Goldman Sachs Group Inc. increased its holdings in shares of Starbucks by 59.5% in the first quarter. Goldman Sachs Group Inc. now owns 9,623,282 shares of the coffee company's stock valued at $943,948,000 after purchasing an additional 3,589,537 shares during the period. Finally, Jennison Associates LLC acquired a new position in shares of Starbucks in the first quarter valued at approximately $817,759,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Stock Down 0.2%

Shares of SBUX stock opened at $84.40 on Thursday. Starbucks Corporation has a fifty-two week low of $75.50 and a fifty-two week high of $117.46. The stock has a market cap of $95.94 billion, a P/E ratio of 36.38, a P/E/G ratio of 5.12 and a beta of 1.01. The business has a fifty day simple moving average of $87.86 and a 200-day simple moving average of $88.77.

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 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%. The firm's revenue was up 3.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.93 EPS. On average, sell-side analysts anticipate that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, November 14th will be paid a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.9%. This is a positive change from Starbucks's previous quarterly dividend of $0.61. Starbucks's dividend payout ratio (DPR) is presently 105.17%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on SBUX shares. Guggenheim upped their price objective on Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. Stifel Nicolaus increased their price objective on Starbucks from $92.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. UBS Group increased their price objective on Starbucks from $95.00 to $100.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 30th. Piper Sandler set a $105.00 price objective on Starbucks and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Finally, Jefferies Financial Group cut Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 price objective for the company. in a research report on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Starbucks has a consensus rating of "Moderate Buy" and an average target price of $104.00.

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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