Knollwood Investment Advisory LLC Boosts Stake in Starbucks Corporation $SBUX

Key Points

• Knollwood Investment Advisory LLC increased its stake in Starbucks Corporation by 265.8% during the 1st quarter, now owning 12,661 shares valued at about $1,242,000.
• Starbucks reported a quarterly EPS of $0.50, falling short of analysts' expectations of $0.64, although its revenue of $9.46 billion surpassed the estimate of $9.29 billion.
• The company announced a quarterly dividend of $0.61 per share, with a dividend yield of 2.7%; however, its payout ratio stands at 105.17%.

Knollwood Investment Advisory LLC raised its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 265.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 12,661 shares of the coffee company's stock after buying an additional 9,200 shares during the quarter. Knollwood Investment Advisory LLC's holdings in Starbucks were worth $1,242,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Starbucks in the 4th quarter worth about $25,000. Hughes Financial Services LLC purchased a new position in shares of Starbucks in the 1st quarter worth about $27,000. McClarren Financial Advisors Inc. purchased a new position in shares of Starbucks in the 1st quarter worth about $29,000. Kapitalo Investimentos Ltda purchased a new position in shares of Starbucks in the 4th quarter worth about $32,000. Finally, Ball & Co Wealth Management Inc. purchased a new position in shares of Starbucks in the 4th quarter worth about $41,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

SBUX has been the subject of a number of research reports. CICC Research started coverage on Starbucks in a report on Monday, June 30th. They issued an "outperform" rating and a $100.00 price objective for the company. Sanford C. Bernstein increased their target price on Starbucks from $90.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, July 2nd. Wall Street Zen cut Starbucks from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. UBS Group increased their target price on Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a report on Wednesday, July 30th. Finally, The Goldman Sachs Group restated a "neutral" rating and set a $95.00 target price (up from $85.00) on shares of Starbucks in a report on Thursday, June 12th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $103.65.

Starbucks Price Performance

SBUX opened at $90.93 on Wednesday. The business has a 50 day simple moving average of $92.82 and a two-hundred day simple moving average of $93.86. The firm has a market capitalization of $103.36 billion, a price-to-earnings ratio of 39.19, a PEG ratio of 5.43 and a beta of 1.02. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly 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). 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 period in the previous year, the company earned $0.93 EPS. The company's revenue for the quarter was up 3.8% on a year-over-year basis. As a group, sell-side analysts expect that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Announces Dividend

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

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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