Gagnon Securities LLC Trims Stake in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Gagnon Securities LLC reduced its stake in Starbucks Corporation by 43.6%, owning 4,872 shares valued at $478,000 after selling 3,761 shares in the first quarter.
• Starbucks announced a quarterly dividend of $0.61 per share, leading to an annualized dividend of $2.44 and a yield of 2.7%.
• Starbucks faced a miss on EPS with $0.50 for the last quarter, below the consensus estimate of $0.64, while experiencing a revenue increase of 3.8% year-over-year.

Gagnon Securities LLC reduced its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 43.6% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 4,872 shares of the coffee company's stock after selling 3,761 shares during the period. Gagnon Securities LLC's holdings in Starbucks were worth $478,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in SBUX. University of Texas Texas AM Investment Management Co. purchased a new stake in Starbucks during the 4th quarter valued at approximately $25,000. Hughes Financial Services LLC purchased a new stake in Starbucks during the 1st quarter valued at approximately $27,000. McClarren Financial Advisors Inc. purchased a new stake in Starbucks during the 1st quarter valued at approximately $29,000. Kapitalo Investimentos Ltda purchased a new stake in Starbucks during the 4th quarter valued at approximately $32,000. Finally, Ball & Co Wealth Management Inc. purchased a new stake in Starbucks during the 4th quarter valued at approximately $41,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Performance

SBUX stock opened at $88.99 on Thursday. Starbucks Corporation has a 1 year low of $74.75 and a 1 year high of $117.46. The firm has a market cap of $101.15 billion, a P/E ratio of 38.36, a PEG ratio of 5.14 and a beta of 1.02. The stock's 50 day moving average price is $91.96 and its 200 day moving average price is $94.48.

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 (EPS) for the quarter, missing the consensus estimate of $0.64 by ($0.14). Starbucks had a negative return on equity of 36.23% and a net margin of 7.18%. The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.29 billion. During the same quarter last year, the business earned $0.93 EPS. Starbucks's revenue for the quarter was up 3.8% compared to the same quarter last year. On average, research analysts predict that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be given a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, August 15th. Starbucks's dividend payout ratio (DPR) is 105.17%.

Wall Street Analysts Forecast Growth

Several research firms have commented on SBUX. BMO Capital Markets reaffirmed an "outperform" rating and set a $115.00 price objective (up from $100.00) on shares of Starbucks in a research note on Wednesday, July 30th. Wells Fargo & Company upped their price objective on Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. TD Securities reaffirmed a "hold" rating and set a $90.00 price objective on shares of Starbucks in a research note on Monday, June 23rd. Stifel Nicolaus upped 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. Finally, Bank of America boosted their target price on Starbucks from $101.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Four research analysts have rated the stock with a sell rating, eleven have issued a hold rating and fifteen have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus 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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