Scotia Capital Inc. Raises Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Scotia Capital Inc. increased its stake in Starbucks Corporation by 3.1%, now holding 274,683 shares worth approximately $26.94 million.
• Starbucks reported an EPS of $0.50 for the last quarter, below the consensus estimate of $0.64, while revenue was $9.46 billion, surpassing expectations.
• The company will pay a quarterly dividend of $0.61 on August 29th, representing an annualized yield of 2.8%, despite a dividend payout ratio of 105.17%.

Scotia Capital Inc. boosted its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 3.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 274,683 shares of the coffee company's stock after purchasing an additional 8,157 shares during the quarter. Scotia Capital Inc.'s holdings in Starbucks were worth $26,944,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of SBUX. Cheviot Value Management LLC acquired a new position in Starbucks during the first quarter worth about $98,000. J. Safra Sarasin Holding AG bought a new position in shares of Starbucks during the 1st quarter worth approximately $320,000. Banco Santander S.A. boosted its holdings in shares of Starbucks by 33.8% during the 1st quarter. Banco Santander S.A. now owns 70,948 shares of the coffee company's stock worth $6,959,000 after buying an additional 17,916 shares in the last quarter. Klein Pavlis & Peasley Financial Inc. lifted its holdings in shares of Starbucks by 3.5% in the 1st quarter. Klein Pavlis & Peasley Financial Inc. now owns 36,845 shares of the coffee company's stock worth $3,619,000 after purchasing an additional 1,239 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its position in Starbucks by 1.5% in the 1st quarter. PNC Financial Services Group Inc. now owns 965,859 shares of the coffee company's stock valued at $94,741,000 after buying an additional 14,102 shares during the last quarter. Institutional investors own 72.29% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Jefferies Financial Group lowered Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 price objective for the company. in a report on Thursday, July 17th. Barclays upped their target price on Starbucks from $106.00 to $115.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Wells Fargo & Company upped their price target on Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Cowen reaffirmed a "hold" rating on shares of Starbucks in a report on Tuesday, June 24th. Finally, CICC Research began coverage on Starbucks in a report on Monday, June 30th. They issued an "outperform" rating and a $100.00 target price on the stock. Four investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fifteen have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $101.27.

Starbucks Trading Down 0.0%

NASDAQ:SBUX traded down $0.03 during mid-day trading on Tuesday, hitting $89.76. The company's stock had a trading volume of 1,902,756 shares, compared to its average volume of 10,634,610. The company has a market capitalization of $102.02 billion, a price-to-earnings ratio of 38.68, a P/E/G ratio of 4.95 and a beta of 1.02. The stock has a fifty day moving average of $91.83 and a 200-day moving average of $94.55. Starbucks Corporation has a fifty-two week low of $73.84 and a fifty-two week high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results 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 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%. Starbucks's revenue was up 3.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.93 EPS. On average, equities analysts anticipate that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The company 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 $0.61 dividend. The ex-dividend date is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.7%. Starbucks's payout ratio is presently 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.