Ransom Advisory Ltd Invests $343,000 in Starbucks Corporation $SBUX

Key Points

• Ransom Advisory Ltd invested $343,000 in Starbucks Corporation by acquiring 3,500 shares in the first quarter, according to a Form 13F filing with the SEC.
• Starbucks reported $0.50 earnings per share (EPS) for the last quarter, which was below analysts' expectations of $0.64, while the company had revenue of $9.46 billion, exceeding estimates of $9.29 billion.
• The company announced a $0.61 per share quarterly dividend, resulting in an annualized dividend yield of 2.9%, despite a high dividend payout ratio of 105.17%.

Ransom Advisory Ltd acquired a new position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,500 shares of the coffee company's stock, valued at approximately $343,000.

Several other large investors also recently made changes to their positions in SBUX. University of Texas Texas AM Investment Management Co. bought a new position in Starbucks in the fourth quarter valued at $25,000. Hughes Financial Services LLC bought a new position in Starbucks in the first quarter valued at $27,000. McClarren Financial Advisors Inc. bought a new position in Starbucks in the first quarter valued at $29,000. Activest Wealth Management grew its position in Starbucks by 78.0% in the first quarter. Activest Wealth Management now owns 331 shares of the coffee company's stock valued at $32,000 after purchasing an additional 145 shares in the last quarter. Finally, Ball & Co Wealth Management Inc. bought a new position in Starbucks in the fourth quarter valued at $41,000. Institutional investors own 72.29% of the company's stock.

Starbucks Price Performance

Shares of SBUX stock opened at $83.81 on Wednesday. The stock has a market cap of $95.27 billion, a P/E ratio of 36.13, a P/E/G ratio of 5.01 and a beta of 1.00. The company has a fifty day moving average price of $91.17 and a two-hundred day moving average price of $91.29. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Tuesday, July 29th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.64 by ($0.14). The company had revenue of $9.46 billion for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.93 EPS. As a group, equities research analysts anticipate that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 15th were paid a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Friday, August 15th. Starbucks's dividend payout ratio (DPR) is currently 105.17%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on SBUX. Morgan Stanley reaffirmed an "overweight" rating and issued a $103.00 target price (up previously from $95.00) on shares of Starbucks in a research report on Wednesday, July 30th. JPMorgan Chase & Co. raised their target price on shares of Starbucks from $100.00 to $105.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Stifel Nicolaus raised their target price 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. Robert W. Baird upgraded shares of Starbucks from a "neutral" rating to an "outperform" rating and increased their price target for the company from $100.00 to $115.00 in a research note on Tuesday, August 12th. Finally, TD Cowen increased their price target on shares of Starbucks from $90.00 to $95.00 and gave the company a "hold" rating in a research note on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $104.40.

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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