Prudential PLC Cuts Stock Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Prudential PLC reduced its holdings in Starbucks by 5.6%, owning 56,995 shares after selling 3,403 shares in the first quarter, valued at approximately $5.59 million.
• Starbucks' latest earnings report showed a disappointing EPS of $0.50, missing analysts' estimates, though revenue increased by 3.8% year-over-year.
• The company announced a quarterly dividend of $0.61 per share, with a projected dividend yield of 2.6% for shareholders of record by August 15th.

Prudential PLC lessened its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 5.6% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 56,995 shares of the coffee company's stock after selling 3,403 shares during the period. Prudential PLC's holdings in Starbucks were worth $5,591,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of the business. University of Texas Texas AM Investment Management Co. purchased a new position in Starbucks in the fourth quarter worth about $25,000. Hughes Financial Services LLC purchased a new stake in Starbucks during the first quarter valued at approximately $27,000. McClarren Financial Advisors Inc. bought a new stake in shares of Starbucks in the 1st quarter valued at approximately $29,000. Kapitalo Investimentos Ltda purchased a new position in shares of Starbucks in the 4th quarter worth approximately $32,000. Finally, Ball & Co Wealth Management Inc. purchased a new position in shares of Starbucks in the 4th quarter worth approximately $41,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Starbucks Stock Performance

Shares of SBUX opened at $94.18 on Thursday. The company has a 50 day moving average price of $92.65 and a 200-day moving average price of $94.31. Starbucks Corporation has a fifty-two week low of $75.50 and a fifty-two week high of $117.46. The stock has a market capitalization of $107.05 billion, a PE ratio of 40.60, a PEG ratio of 5.32 and a beta of 1.02.

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

Starbucks Announces Dividend

The company also recently disclosed 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 dividend on an annualized basis and a dividend yield of 2.6%. Starbucks's payout ratio is presently 105.17%.

Analysts Set New Price Targets

SBUX has been the topic of several recent research reports. Robert W. Baird upgraded Starbucks from a "neutral" rating to an "outperform" rating and raised their price target for the stock from $100.00 to $115.00 in a research report on Tuesday. Jefferies Financial Group downgraded shares of Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price on the stock. in a research note on Thursday, July 17th. Barclays raised their target price on shares of Starbucks from $106.00 to $115.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. TD Cowen upped their price target on shares of Starbucks from $90.00 to $95.00 and gave the company a "hold" rating in a report on Wednesday, July 30th. Finally, Sanford C. Bernstein increased their price objective on shares of Starbucks from $90.00 to $100.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 2nd. Four research analysts have rated the stock with a sell rating, nine have assigned a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Starbucks currently has a consensus rating of "Hold" and a consensus target price of $104.19.

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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