Soros Capital Management LLC Grows Position in Starbucks Corporation $SBUX

Key Points

• Soros Capital Management LLC increased its holdings in Starbucks Corporation by 292.6% in Q1, acquiring an additional 19,430 shares, bringing its total to 26,070 shares valued at $2,557,000.
• Starbucks reported a quarterly earnings per share (EPS) of $0.50, which was below analysts' expectations of $0.64, while revenue for the quarter was $9.46 billion, exceeding forecasts of $9.29 billion.
• The company declared a quarterly dividend of $0.61 per share, with an annualized dividend yield of 2.8%, despite a payout ratio of 105.17%.

Soros Capital Management LLC increased its position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 292.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 26,070 shares of the coffee company's stock after acquiring an additional 19,430 shares during the period. Soros Capital Management LLC's holdings in Starbucks were worth $2,557,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. University of Texas Texas AM Investment Management Co. acquired a new position in Starbucks during the 4th quarter worth about $25,000. Hughes Financial Services LLC acquired a new position in Starbucks during the 1st quarter worth about $27,000. McClarren Financial Advisors Inc. acquired a new position in Starbucks during the 1st quarter worth about $29,000. Kapitalo Investimentos Ltda acquired a new position in Starbucks during the 4th quarter worth about $32,000. Finally, GKV Capital Management Co. Inc. purchased a new stake in Starbucks during the 1st quarter worth about $42,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Wall Street Analyst Weigh In

SBUX has been the topic of several recent research reports. TD Cowen upped their price target on Starbucks from $90.00 to $95.00 and gave the stock a "hold" rating in a report on Wednesday, July 30th. Stifel Nicolaus upped their price target on Starbucks from $92.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, July 11th. Guggenheim upped their price target on Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. BMO Capital Markets restated an "outperform" rating and set a $115.00 price target (up previously from $100.00) on shares of Starbucks in a report on Wednesday, July 30th. Finally, Sanford C. Bernstein upped their price target on Starbucks from $90.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $104.40.

Starbucks Price Performance

Shares of NASDAQ SBUX traded up $1.03 during midday trading on Wednesday, hitting $87.66. 7,675,500 shares of the company's stock were exchanged, compared to its average volume of 11,001,880. Starbucks Corporation has a twelve month low of $75.50 and a twelve month high of $117.46. The company has a market cap of $99.64 billion, a PE ratio of 37.78, a P/E/G ratio of 5.14 and a beta of 1.02. The firm's fifty day simple moving average is $92.15 and its 200-day simple moving average is $93.02.

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

Starbucks Dividend Announcement

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