Guggenheim Capital LLC Decreases Stock Position in Starbucks Corporation $SBUX

Key Points

• Guggenheim Capital LLC has reduced its stake in Starbucks Corporation by 18.3%, holding 525,556 shares valued at approximately $51.55 million after selling 117,503 shares in the first quarter.
• Starbucks reported a Q2 earnings per share of $0.50, falling short of the consensus estimate of $0.64, although revenue increased by 3.8% year-over-year to $9.46 billion.
• The company has announced a quarterly dividend payment of $0.61 per share, representing a dividend yield of 2.8% with a payout ratio of 105.17%.

Guggenheim Capital LLC reduced its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 18.3% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 525,556 shares of the coffee company's stock after selling 117,503 shares during the quarter. Guggenheim Capital LLC's holdings in Starbucks were worth $51,552,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of SBUX. University of Texas Texas AM Investment Management Co. bought a new position in shares of Starbucks in the 4th quarter worth about $25,000. Hughes Financial Services LLC acquired a new stake in shares of Starbucks in the 1st quarter worth about $27,000. McClarren Financial Advisors Inc. acquired a new stake in shares of Starbucks in the 1st quarter worth about $29,000. Kapitalo Investimentos Ltda acquired a new stake in shares of Starbucks in the 4th quarter worth about $32,000. Finally, Ball & Co Wealth Management Inc. acquired a new stake in shares of Starbucks in the 4th quarter worth about $41,000. 72.29% of the stock is currently owned by institutional investors.

Starbucks Trading Up 1.0%

NASDAQ:SBUX opened at $86.63 on Wednesday. Starbucks Corporation has a twelve month low of $75.50 and a twelve month high of $117.46. The company has a 50-day moving average of $92.24 and a 200-day moving average of $93.06. The firm has a market cap of $98.47 billion, a price-to-earnings ratio of 37.34, a price-to-earnings-growth ratio of 5.09 and a beta of 1.02.

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 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 business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.29 billion. During the same quarter last year, the business posted $0.93 EPS. The business's revenue for the quarter was up 3.8% on a year-over-year basis. On average, research analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently disclosed 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. The ex-dividend date is Friday, August 15th. This represents a $2.44 annualized dividend and a dividend yield of 2.8%. Starbucks's dividend payout ratio (DPR) is 105.17%.

Analysts Set New Price Targets

SBUX has been the topic of a number of analyst reports. TD Securities reaffirmed a "hold" rating and issued a $90.00 price objective on shares of Starbucks in a report on Monday, June 23rd. Guggenheim increased their price objective on shares of Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. Bank of America increased their price objective on shares of Starbucks from $101.00 to $110.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Piper Sandler set a $105.00 target price on shares of Starbucks and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Finally, Robert W. Baird raised shares of Starbucks from a "neutral" rating to an "outperform" rating and raised their target price for the company from $100.00 to $115.00 in a research note on Tuesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $104.40.

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.

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