Smith Thornton Advisors LLC Takes $376,000 Position in Starbucks Corporation $SBUX

Key Points

• Smith Thornton Advisors LLC acquired a new position in Starbucks Corporation, purchasing 4,109 shares valued at approximately $376,000 during the second quarter.
• Starbucks recently announced an increase in its quarterly dividend to $0.62 per share, reflecting an annualized dividend of $2.48 and a yield of 2.9%.
• The company's stock price opened at $84.53, with a one-year high of $117.46 and a recent earnings report showing a revenue of $9.46 billion, exceeding analyst estimates.

Smith Thornton Advisors LLC purchased a new stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 4,109 shares of the coffee company's stock, valued at approximately $376,000.

Several other large investors have also modified their holdings of the business. Vanguard Group Inc. boosted its position in Starbucks by 0.9% during the first quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company's stock worth $10,991,923,000 after acquiring an additional 953,361 shares during the last quarter. Wellington Management Group LLP raised its stake in Starbucks by 22.3% during the first quarter. Wellington Management Group LLP now owns 19,414,472 shares of the coffee company's stock worth $1,904,366,000 after purchasing an additional 3,545,655 shares during the period. Nuveen LLC purchased a new position in shares of Starbucks in the 1st quarter valued at $1,379,619,000. Goldman Sachs Group Inc. raised its stake in shares of Starbucks by 59.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 9,623,282 shares of the coffee company's stock valued at $943,948,000 after acquiring an additional 3,589,537 shares during the period. Finally, Jennison Associates LLC purchased a new position in shares of Starbucks in the 1st quarter valued at $817,759,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Stock Performance

NASDAQ SBUX opened at $84.53 on Tuesday. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46. The company has a 50-day simple moving average of $85.57 and a 200-day simple moving average of $87.41. The firm has a market capitalization of $96.09 billion, a PE ratio of 36.44, a price-to-earnings-growth ratio of 4.22 and a beta of 1.01.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted 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 business had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.29 billion. During the same period last year, the firm posted $0.93 earnings per share. The company's quarterly revenue was up 3.8% on a year-over-year basis. Equities analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 14th will be paid a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, November 14th. This is a positive change from Starbucks's previous quarterly dividend of $0.61. Starbucks's dividend payout ratio (DPR) is presently 105.17%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SBUX. Royal Bank Of Canada lifted their price target on shares of Starbucks from $100.00 to $110.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Sanford C. Bernstein raised their price objective on shares of Starbucks from $90.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. Morgan Stanley set a $105.00 price objective on shares of Starbucks and gave the stock an "overweight" rating in a report on Monday. Cowen reissued a "hold" rating on shares of Starbucks in a report on Tuesday, June 24th. Finally, Wells Fargo & Company set a $100.00 price objective on shares of Starbucks and gave the stock an "overweight" rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $102.60.

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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