Davis Capital Management Sells 9,679 Shares of Starbucks Co. (NASDAQ:SBUX)

Davis Capital Management cut its position in shares of Starbucks Co. (NASDAQ:SBUX - Free Report) by 85.3% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,671 shares of the coffee company's stock after selling 9,679 shares during the quarter. Davis Capital Management's holdings in Starbucks were worth $164,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently made changes to their positions in the company. Strategic Financial Concepts LLC purchased a new position in Starbucks during the fourth quarter valued at $62,000. Arizona State Retirement System raised its stake in shares of Starbucks by 0.8% in the fourth quarter. Arizona State Retirement System now owns 327,459 shares of the coffee company's stock worth $29,881,000 after purchasing an additional 2,722 shares during the last quarter. West Michigan Advisors LLC purchased a new position in shares of Starbucks in the fourth quarter worth $265,000. Wernau Asset Management Inc. purchased a new stake in Starbucks during the fourth quarter valued at $258,000. Finally, Vanguard Capital Wealth Advisors purchased a new stake in Starbucks during the fourth quarter valued at $285,000. 72.29% of the stock is currently owned by institutional investors.

Starbucks Trading Up 3.0%

Shares of NASDAQ:SBUX traded up $2.65 during mid-day trading on Friday, reaching $89.64. The stock had a trading volume of 8,771,082 shares, compared to its average volume of 11,064,466. Starbucks Co. has a 1 year low of $71.55 and a 1 year high of $117.46. The business's 50 day moving average price is $84.45 and its 200 day moving average price is $95.19. The company has a market cap of $101.87 billion, a P/E ratio of 28.92, a price-to-earnings-growth ratio of 3.59 and a beta of 1.00.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings data on Tuesday, April 29th. The coffee company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.51 by ($0.10). The company had revenue of $8.76 billion during the quarter, compared to the consensus estimate of $8.90 billion. Starbucks had a net margin of 9.73% and a negative return on equity of 44.97%. Starbucks's revenue for the quarter was up 2.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.68 earnings per share. Analysts predict that Starbucks Co. will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Friday, May 16th were paid a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 2.72%. The ex-dividend date of this dividend was Friday, May 16th. Starbucks's payout ratio is 88.41%.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Citigroup reduced their price objective on Starbucks from $88.00 to $84.00 and set a "neutral" rating for the company in a research report on Wednesday, April 30th. Baird R W cut Starbucks from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 7th. Wells Fargo & Company reduced their price objective on Starbucks from $125.00 to $100.00 and set an "overweight" rating for the company in a research report on Tuesday, April 22nd. Wall Street Zen lowered Starbucks from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Finally, Argus raised Starbucks from a "hold" rating to a "buy" rating and set a $115.00 price target for the company in a report on Tuesday, March 18th. Three analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $97.92.

Starbucks Company 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.