GFS Advisors LLC Takes Position in Starbucks Corporation $SBUX

Key Points

• GFS Advisors LLC acquired a new position in Starbucks Corporation, purchasing 12,255 shares valued at approximately $1.12 million during the second quarter.
• Starbucks announced a quarterly dividend increase, now at $0.62 per share, reflecting a 3.2% yield on an annualized basis, with a payout ratio of 105.17%.
• Starbucks missed EPS estimates last quarter, reporting $0.50 compared to the consensus call of $0.64, while revenues slightly surpassed expectations at $9.46 billion.

GFS Advisors LLC bought a new stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 12,255 shares of the coffee company's stock, valued at approximately $1,123,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Game Plan Financial Advisors LLC acquired a new stake in Starbucks in the second quarter worth about $25,000. Chelsea Counsel Co. acquired a new stake in Starbucks in the second quarter worth about $26,000. Hughes Financial Services LLC acquired a new stake in Starbucks in the first quarter worth about $27,000. CBIZ Investment Advisory Services LLC increased its position in Starbucks by 125.2% in the first quarter. CBIZ Investment Advisory Services LLC now owns 286 shares of the coffee company's stock worth $28,000 after purchasing an additional 159 shares during the period. Finally, McClarren Financial Advisors Inc. acquired a new stake in Starbucks in the first quarter worth about $29,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Price Performance

NASDAQ:SBUX opened at $78.46 on Friday. 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 capitalization of $89.19 billion, a PE ratio of 33.82, a price-to-earnings-growth ratio of 3.87 and a beta of 1.01. The business's 50-day simple moving average is $86.48 and its 200-day simple moving average is $87.95.

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

Starbucks Increases Dividend

The company also recently declared 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. This is an increase from Starbucks's previous quarterly dividend of $0.61. The ex-dividend date of this dividend is Friday, November 14th. This represents a $2.48 dividend on an annualized basis and a yield of 3.2%. Starbucks's payout ratio is currently 105.17%.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Stifel Nicolaus lifted 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. Piper Sandler set a $105.00 target price on Starbucks and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Guggenheim boosted their target price on Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Citigroup upgraded Starbucks from a "neutral" rating to a "mixed" rating in a research report on Thursday. Finally, Jefferies Financial Group lowered Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price for the company. in a research report on Thursday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $103.56.

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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