Pegasus Asset Management Inc. Makes New Investment in Starbucks Corporation $SBUX

Key Points

• Pegasus Asset Management Inc. acquired a new position in Starbucks Corporation, purchasing 14,068 shares valued at approximately $1.29 million in the second quarter.
• The company recently announced a quarterly dividend increase to $0.62 per share, reflecting an annualized dividend of $2.48 and a yield of 3.2%.
• Starbucks's stock has seen a target price revision from several analysts, with Stifel Nicolaus and Evercore ISI setting targets of $105.00, signaling a positive outlook amidst recent earnings that fell short of estimates.

Pegasus Asset Management Inc. purchased a new position in Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 14,068 shares of the coffee company's stock, valued at approximately $1,289,000.

Other institutional investors have also recently made changes to their positions in the company. PUREfi Wealth LLC purchased a new position in shares of Starbucks during the second quarter worth $286,000. Narwhal Capital Management raised its holdings in shares of Starbucks by 39.6% during the second quarter. Narwhal Capital Management now owns 32,738 shares of the coffee company's stock worth $3,000,000 after purchasing an additional 9,282 shares during the last quarter. Napa Wealth Management purchased a new position in shares of Starbucks during the first quarter worth $1,435,000. Personal CFO Solutions LLC raised its holdings in shares of Starbucks by 125.5% during the first quarter. Personal CFO Solutions LLC now owns 9,254 shares of the coffee company's stock worth $908,000 after purchasing an additional 5,151 shares during the last quarter. Finally, First Manhattan CO. LLC. raised its holdings in shares of Starbucks by 33.1% during the first quarter. First Manhattan CO. LLC. now owns 446,294 shares of the coffee company's stock worth $43,777,000 after purchasing an additional 111,015 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on SBUX shares. UBS Group raised their target price on shares of Starbucks from $95.00 to $100.00 and gave the stock a "neutral" rating in a report on Wednesday, July 30th. Cowen restated a "hold" rating on shares of Starbucks in a research report on Tuesday, June 24th. Stifel Nicolaus raised their price target on shares of Starbucks from $92.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, July 11th. Guggenheim raised their price target on shares of Starbucks from $79.00 to $90.00 and gave the company a "neutral" rating in a research report on Thursday, July 31st. Finally, Evercore ISI restated an "outperform" rating and set a $105.00 price target (up previously from $95.00) on shares of Starbucks in a research report on Tuesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Starbucks currently has an average rating of "Moderate Buy" and an average price target of $103.56.

Starbucks Stock Down 1.7%

Shares of NASDAQ SBUX opened at $78.46 on Monday. The company's 50-day simple moving average is $86.48 and its 200-day simple moving average is $87.87. Starbucks Corporation has a 52-week low of $75.50 and a 52-week high of $117.46. The firm has a market cap of $89.19 billion, a price-to-earnings ratio of 33.82, a price-to-earnings-growth ratio of 3.89 and a beta of 1.01.

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 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 company had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.29 billion. During the same quarter last year, the business earned $0.93 EPS. The firm's revenue for the quarter was up 3.8% compared to the same quarter last year. Equities research analysts anticipate that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Increases Dividend

The business 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 $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 3.2%. This is a positive change from Starbucks's previous quarterly dividend of $0.61. The ex-dividend date is Friday, November 14th. Starbucks's dividend payout ratio (DPR) is 105.17%.

About Starbucks

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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