Interchange Capital Partners LLC Cuts Stock Position in Starbucks Corporation $SBUX

Key Points

• Interchange Capital Partners LLC significantly reduced its stake in Starbucks by 97.3%, selling 15,519 shares and retaining only 438 shares, valued at $40,000.
• Several hedge funds increased their investments in Starbucks, with notable acquisitions from Game Plan Financial Advisors and Chelsea Counsel Co., contributing to strong institutional ownership of 72.29%.
• Starbucks announced a quarterly dividend increase to $0.62 per share, with a payout ratio of 105.17%, reflecting a commitment to returning value to shareholders.

Interchange Capital Partners LLC lessened its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 97.3% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 438 shares of the coffee company's stock after selling 15,519 shares during the period. Interchange Capital Partners LLC's holdings in Starbucks were worth $40,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of the stock. Game Plan Financial Advisors LLC acquired a new stake in Starbucks in the 2nd quarter worth approximately $25,000. Chelsea Counsel Co. acquired a new stake in Starbucks in the 2nd quarter worth approximately $26,000. Hughes Financial Services LLC acquired a new stake in Starbucks in the 1st quarter worth approximately $27,000. CBIZ Investment Advisory Services LLC boosted its stake in Starbucks by 125.2% in the 1st 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 in the last quarter. Finally, McClarren Financial Advisors Inc. acquired a new stake in Starbucks in the 1st quarter worth approximately $29,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. UBS Group lifted their target price on shares of Starbucks from $95.00 to $100.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. Robert W. Baird upgraded shares of Starbucks from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $100.00 to $115.00 in a research note on Tuesday, August 12th. Evercore ISI reiterated an "outperform" rating and issued a $105.00 target price (up previously from $95.00) on shares of Starbucks in a research report on Tuesday, June 24th. Zacks Research raised shares of Starbucks from a "strong sell" rating to a "hold" rating in a research report on Wednesday, October 1st. Finally, Cowen restated a "hold" rating on shares of Starbucks in a research note on Tuesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Starbucks presently has an average rating of "Moderate Buy" and a consensus price target of $102.96.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $82.86 on Thursday. Starbucks Corporation has a 12 month low of $75.50 and a 12 month high of $117.46. The stock has a market capitalization of $94.19 billion, a price-to-earnings ratio of 35.72, a PEG ratio of 4.01 and a beta of 1.01. The firm's 50 day simple moving average is $85.99 and its 200-day simple moving average is $87.67.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Tuesday, July 29th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $9.29 billion. During the same quarter last year, the business earned $0.93 EPS. The company's quarterly revenue was up 3.8% on a year-over-year basis. Analysts anticipate that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 14th will be given a dividend of $0.62 per share. This is a positive change from Starbucks's previous quarterly dividend of $0.61. The ex-dividend date is Friday, November 14th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 3.0%. Starbucks's payout ratio is 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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