iA Global Asset Management Inc. Decreases Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• iA Global Asset Management Inc. has reduced its stake in Starbucks Corporation by 37.6%, now holding 125,037 shares after selling 75,210 shares in the first quarter, representing a total value of $12.27 million.
• Bank of America and BMO Capital Markets have increased their price targets for Starbucks shares to $110.00 and $115.00 respectively, reflecting positive sentiment among analysts, with a consensus rating of "Hold".
• Starbucks has recently announced a quarterly dividend of $0.61 per share, indicating a dividend yield of 2.7%, which comes despite a payout ratio of 105.17%.

iA Global Asset Management Inc. cut its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 37.6% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 125,037 shares of the coffee company's stock after selling 75,210 shares during the period. iA Global Asset Management Inc.'s holdings in Starbucks were worth $12,265,000 as of its most recent SEC filing.

Other large investors have also bought and sold shares of the company. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Starbucks during the 4th quarter valued at about $25,000. Hughes Financial Services LLC purchased a new position in shares of Starbucks during the first quarter valued at approximately $27,000. McClarren Financial Advisors Inc. purchased a new position in shares of Starbucks during the first quarter valued at approximately $29,000. Kapitalo Investimentos Ltda purchased a new position in shares of Starbucks during the fourth quarter valued at approximately $32,000. Finally, Ball & Co Wealth Management Inc. purchased a new position in shares of Starbucks during the fourth quarter valued at approximately $41,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Bank of America boosted their price objective on shares of Starbucks from $101.00 to $110.00 and gave the company a "buy" rating in a report on Friday, July 18th. BMO Capital Markets reaffirmed an "outperform" rating and set a $115.00 price target (up previously from $100.00) on shares of Starbucks in a research report on Wednesday, July 30th. Robert W. Baird upped their price target on shares of Starbucks from $88.00 to $100.00 and gave the company a "neutral" rating in a research report on Wednesday, July 30th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $95.00 price target (up previously from $85.00) on shares of Starbucks in a research report on Thursday, June 12th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $103.00 price target (up previously from $95.00) on shares of Starbucks in a research report on Wednesday, July 30th. 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, the company currently has a consensus rating of "Hold" and a consensus price target of $101.27.

Starbucks Price Performance

Starbucks stock opened at $89.78 on Tuesday. The firm has a market capitalization of $102.05 billion, a P/E ratio of 38.70, a price-to-earnings-growth ratio of 4.95 and a beta of 1.02. Starbucks Corporation has a 1-year low of $72.72 and a 1-year high of $117.46. The company's 50-day moving average is $91.83 and its 200 day moving average is $94.55.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its 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 business 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 company's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period last year, the business posted $0.93 EPS. Research analysts anticipate that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be paid a dividend of $0.61 per share. The ex-dividend date is Friday, August 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.7%. Starbucks's payout ratio is presently 105.17%.

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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