RPG Investment Advisory LLC Buys 88,507 Shares of Starbucks Corporation $SBUX

Key Points

• RPG Investment Advisory LLC increased its holdings in Starbucks by 101.5%, acquiring an additional 88,507 shares, bringing its total to 175,710 shares valued at approximately $17.2 million.
• Analysts are bullish on Starbucks stock, with various firms raising their price targets, including Barclays and Morgan Stanley, with a consensus target price now at $104.40.
• Starbucks recently announced a quarterly dividend of $0.61 per share, with an annualized yield of 2.8%, despite a high payout ratio of 105.17%.

RPG Investment Advisory LLC grew its position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 101.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 175,710 shares of the coffee company's stock after purchasing an additional 88,507 shares during the period. RPG Investment Advisory LLC's holdings in Starbucks were worth $17,235,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the company. TrinityPoint Wealth LLC lifted its stake in shares of Starbucks by 2.7% in the 4th quarter. TrinityPoint Wealth LLC now owns 3,421 shares of the coffee company's stock valued at $312,000 after purchasing an additional 89 shares during the last quarter. Mendel Capital Management LLC raised its holdings in Starbucks by 1.8% in the 4th quarter. Mendel Capital Management LLC now owns 5,721 shares of the coffee company's stock valued at $522,000 after buying an additional 101 shares during the period. Benin Management CORP raised its holdings in Starbucks by 0.7% in the 1st quarter. Benin Management CORP now owns 16,575 shares of the coffee company's stock valued at $1,626,000 after buying an additional 120 shares during the period. Ted Buchan & Co boosted its stake in Starbucks by 1.5% during the first quarter. Ted Buchan & Co now owns 8,066 shares of the coffee company's stock worth $791,000 after buying an additional 120 shares during the period. Finally, Alexander Labrunerie & CO. Inc. increased its position in shares of Starbucks by 3.5% during the first quarter. Alexander Labrunerie & CO. Inc. now owns 3,561 shares of the coffee company's stock valued at $349,000 after acquiring an additional 122 shares during the last quarter. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

SBUX has been the topic of several recent analyst reports. Barclays upped their price objective on shares of Starbucks from $106.00 to $115.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Morgan Stanley restated an "overweight" rating and set a $103.00 price target (up from $95.00) on shares of Starbucks in a research report on Wednesday, July 30th. Robert W. Baird upgraded Starbucks from a "neutral" rating to an "outperform" rating and boosted their price objective for the company from $100.00 to $115.00 in a report on Tuesday, August 12th. BMO Capital Markets restated an "outperform" rating and set a $115.00 target price (up from $100.00) on shares of Starbucks in a report on Wednesday, July 30th. Finally, UBS Group boosted their price target on shares of Starbucks from $95.00 to $100.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $104.40.

Starbucks Stock Performance

Shares of NASDAQ SBUX opened at $88.56 on Friday. The stock's 50-day simple moving average is $92.59 and its 200-day simple moving average is $93.70. The firm has a market capitalization of $100.67 billion, a PE ratio of 38.17, a price-to-earnings-growth ratio of 5.31 and a beta of 1.02. Starbucks Corporation has a fifty-two week low of $75.50 and a fifty-two week high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The coffee company reported $0.50 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 analysts' expectations of $9.29 billion. During the same quarter in the prior year, the company earned $0.93 earnings per share. The business's revenue for the quarter was up 3.8% on a year-over-year basis. On average, sell-side analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be given a dividend of $0.61 per share. The ex-dividend date is Friday, August 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.8%. Starbucks's payout ratio is 105.17%.

Starbucks 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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