Lorne Steinberg Wealth Management Inc. Acquires 15,782 Shares of Starbucks Corporation $SBUX

Key Points

• Lorne Steinberg Wealth Management Inc. increased its stake in Starbucks Corporation by 29.3%, acquiring an additional 15,782 shares to hold a total of 69,711 shares, worth approximately $6.39 million.
• Analysts maintain a positive outlook on Starbucks, with an average price target of $102.76, citing price increases and multiple "buy" ratings.
• Starbucks recently announced a quarterly dividend increase to $0.62 per share, reflecting an annualized amount of $2.48, and a dividend yield of 2.9%.

Lorne Steinberg Wealth Management Inc. raised its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 29.3% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 69,711 shares of the coffee company's stock after purchasing an additional 15,782 shares during the quarter. Starbucks accounts for approximately 1.7% of Lorne Steinberg Wealth Management Inc.'s portfolio, making the stock its 28th largest position. Lorne Steinberg Wealth Management Inc.'s holdings in Starbucks were worth $6,388,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of SBUX. Game Plan Financial Advisors LLC bought a new stake in Starbucks during the 2nd quarter valued at $25,000. Chelsea Counsel Co. bought a new stake in Starbucks during the 2nd quarter valued at $26,000. Hughes Financial Services LLC bought a new stake in Starbucks during the 1st quarter valued at $27,000. CBIZ Investment Advisory Services LLC increased its stake in Starbucks by 125.2% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 286 shares of the coffee company's stock valued at $28,000 after purchasing an additional 159 shares in the last quarter. Finally, McClarren Financial Advisors Inc. bought a new stake in Starbucks during the 1st quarter valued at $29,000. Institutional investors own 72.29% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on SBUX. Stifel Nicolaus boosted their price target on shares of Starbucks from $92.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Royal Bank Of Canada lifted their price objective on shares of Starbucks from $100.00 to $110.00 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. JPMorgan Chase & Co. lifted their price objective on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Guggenheim lifted 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. Finally, Wells Fargo & Company set a $100.00 price objective on shares of Starbucks and gave the stock an "overweight" rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $102.76.

Starbucks Stock Performance

Shares of NASDAQ:SBUX opened at $85.36 on Monday. The company's 50-day moving average is $85.72 and its 200 day moving average is $87.40. The company has a market capitalization of $97.03 billion, a P/E ratio of 36.79, a price-to-earnings-growth ratio of 4.22 and a beta of 1.01. Starbucks Corporation has a fifty-two week low of $75.50 and a fifty-two week high of $117.46.

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

Starbucks Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, November 14th will be issued a $0.62 dividend. 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 dividend yield of 2.9%. 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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