Nuveen LLC Buys New Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Nuveen LLC has acquired a new position in Starbucks Corporation, purchasing approximately 14 million shares valued at about $1.38 billion, which represents 1.24% of the company's stock.
• Recent analysts' upgrades indicate positive sentiment, with Royal Bank Of Canada raising Starbucks' price target from $100 to $110 and Barclays from $106 to $115, while the average price target is currently set at $101.27.
• Starbucks declared a quarterly dividend of $0.61 per share, with an annualized yield of 2.6%, despite a dividend payout ratio of 105.17% following its earnings report revealing missed earnings expectations.

Nuveen LLC bought a new stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 14,064,824 shares of the coffee company's stock, valued at approximately $1,379,619,000. Nuveen LLC owned about 1.24% of Starbucks as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. TrinityPoint Wealth LLC lifted its holdings in Starbucks by 2.7% during the fourth quarter. TrinityPoint Wealth LLC now owns 3,421 shares of the coffee company's stock worth $312,000 after acquiring an additional 89 shares during the period. Gamco Investors INC. ET AL lifted its holdings in Starbucks by 3.5% during the fourth quarter. Gamco Investors INC. ET AL now owns 2,860 shares of the coffee company's stock worth $261,000 after acquiring an additional 97 shares during the period. Foster Dykema Cabot & Partners LLC lifted its holdings in Starbucks by 10.6% during the fourth quarter. Foster Dykema Cabot & Partners LLC now owns 1,014 shares of the coffee company's stock worth $93,000 after acquiring an additional 97 shares during the period. Taurus Asset Management LLC lifted its holdings in Starbucks by 0.5% during the fourth quarter. Taurus Asset Management LLC now owns 21,895 shares of the coffee company's stock worth $1,998,000 after acquiring an additional 100 shares during the period. Finally, Mendel Capital Management LLC lifted its holdings in Starbucks by 1.8% during the fourth quarter. Mendel Capital Management LLC now owns 5,721 shares of the coffee company's stock worth $522,000 after acquiring an additional 101 shares during the period. Hedge funds and other institutional investors own 72.29% of the company's stock.

Analyst Upgrades and Downgrades

SBUX has been the topic of a number of recent analyst reports. Royal Bank Of Canada lifted their price target on Starbucks from $100.00 to $110.00 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. Barclays lifted their price target on Starbucks from $106.00 to $115.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Citigroup dropped their price target on Starbucks from $100.00 to $99.00 and set a "neutral" rating on the stock in a report on Wednesday, July 30th. The Goldman Sachs Group restated a "neutral" rating and issued a $95.00 target price (up from $85.00) on shares of Starbucks in a research note on Thursday, June 12th. Finally, Wells Fargo & Company boosted their target price on Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Four equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have issued a buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $101.27.

Starbucks Trading Up 1.2%

SBUX opened at $92.12 on Friday. The stock has a 50-day moving average price of $92.27 and a 200-day moving average price of $94.39. Starbucks Corporation has a 12-month low of $74.75 and a 12-month high of $117.46. The stock has a market capitalization of $104.71 billion, a P/E ratio of 39.71, a PEG ratio of 5.25 and a beta of 1.02.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its earnings results on Tuesday, July 29th. The coffee company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.14). The company 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 was up 3.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.93 earnings per share. On average, equities research analysts predict that Starbucks Corporation will post 2.99 EPS for the current year.

Starbucks Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be issued a dividend of $0.61 per share. The ex-dividend date is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.6%. Starbucks's dividend payout ratio is currently 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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