Lyell Wealth Management LP Sells 5,994 Shares of Starbucks Corporation $SBUX

Key Points

• Lyell Wealth Management LP has reduced its stake in Starbucks Corporation by 32.2%, selling 5,994 shares during the second quarter, bringing its total holdings to 12,600 shares valued at approximately $1.15 million.
• Brokerages are optimistic about Starbucks' performance, with multiple analysts raising their price targets, including BMO Capital Markets and Robert W. Baird, who both set targets of $115.
• Starbucks recently declared an increase in its quarterly dividend from $0.61 to $0.62, with a dividend yield of 2.9%, scheduled for payment on November 28th.

Lyell Wealth Management LP reduced its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 32.2% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 12,600 shares of the coffee company's stock after selling 5,994 shares during the quarter. Lyell Wealth Management LP's holdings in Starbucks were worth $1,155,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Game Plan Financial Advisors LLC bought a new stake in shares of Starbucks during the second quarter valued at approximately $25,000. Hughes Financial Services LLC bought a new stake in shares of Starbucks during the first quarter valued at approximately $27,000. Chelsea Counsel Co. bought a new stake in shares of Starbucks during the second quarter valued at approximately $26,000. CBIZ Investment Advisory Services LLC grew its stake in shares of Starbucks by 125.2% during the first 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 during the last quarter. Finally, McClarren Financial Advisors Inc. bought a new stake in shares of Starbucks during the first quarter valued at approximately $29,000. 72.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SBUX. BMO Capital Markets reaffirmed an "outperform" rating and issued a $115.00 price objective (up from $100.00) on shares of Starbucks in a research note on Wednesday, July 30th. CICC Research began coverage on shares of Starbucks in a research note on Monday, June 30th. They issued an "outperform" rating and a $100.00 price objective on the stock. Morgan Stanley reaffirmed an "overweight" rating and issued a $103.00 price objective (up from $95.00) on shares of Starbucks in a research note on Wednesday, July 30th. Robert W. Baird raised shares of Starbucks from a "neutral" rating to an "outperform" rating and raised their price objective for the company from $100.00 to $115.00 in a research note on Tuesday, August 12th. Finally, Sanford C. Bernstein raised their price objective on shares of Starbucks from $90.00 to $100.00 and gave the company an "outperform" rating in a research note on Wednesday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $102.76.

Starbucks Stock Up 1.2%

Shares of SBUX stock opened at $85.36 on Monday. Starbucks Corporation has a 12-month low of $75.50 and a 12-month high of $117.46. The firm has a market capitalization of $97.03 billion, a price-to-earnings ratio of 36.79, a price-to-earnings-growth ratio of 4.22 and a beta of 1.01. The firm has a fifty day moving average of $85.72 and a 200-day moving average of $87.40.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The coffee company reported $0.50 earnings per share (EPS) 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 firm had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.29 billion. During the same period last year, the firm earned $0.93 EPS. Starbucks's quarterly revenue was up 3.8% on a year-over-year basis. Research analysts expect that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 14th will be issued a $0.62 dividend. This is a positive change 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 annualized dividend and a dividend yield of 2.9%. Starbucks's dividend payout ratio (DPR) 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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