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Jensen Investment Management Inc. Lowers Stock Holdings in Starbucks Corporation (NASDAQ:SBUX)

Starbucks logo with Retail/Wholesale background

Key Points

  • Jensen Investment Management Inc. significantly reduced its stake in Starbucks by 80.7% during the first quarter, leaving it with 5,823 shares valued at approximately $571,000.
  • Starbucks is projected to report earnings of $2.99 per share for the current year, after posting a quarterly EPS of $0.50 which missed estimates by $0.14.
  • The company announced a quarterly dividend of $0.61 per share, with a yield of 2.7%, reflecting a payout ratio of 105.17%.
  • Looking to Export and Analyze Starbucks Data? Unlock 5 Weeks of MarketBeat All Access for Just $5. Claim Your Limited-Time Discount.

Jensen Investment Management Inc. trimmed its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 80.7% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 5,823 shares of the coffee company's stock after selling 24,398 shares during the quarter. Jensen Investment Management Inc.'s holdings in Starbucks were worth $571,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in the business. Capital World Investors raised its stake in Starbucks by 20.1% in the fourth quarter. Capital World Investors now owns 54,924,230 shares of the coffee company's stock valued at $5,011,796,000 after purchasing an additional 9,174,682 shares in the last quarter. Jennison Associates LLC bought a new position in shares of Starbucks in the 1st quarter worth $817,759,000. Goldman Sachs Group Inc. raised its position in shares of Starbucks by 59.5% during 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 buying an additional 3,589,537 shares in the last quarter. Capital Research Global Investors raised its position in shares of Starbucks by 167.6% during the 4th quarter. Capital Research Global Investors now owns 5,690,198 shares of the coffee company's stock valued at $519,230,000 after buying an additional 3,563,942 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its holdings in shares of Starbucks by 218.7% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 4,552,921 shares of the coffee company's stock worth $446,596,000 after acquiring an additional 3,124,533 shares during the last quarter. 72.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Citigroup lowered their price target on Starbucks from $100.00 to $99.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 30th. The Goldman Sachs Group reissued a "neutral" rating and set a $95.00 price objective (up from $85.00) on shares of Starbucks in a report on Thursday, June 12th. Evercore ISI reaffirmed an "outperform" rating and issued a $105.00 target price (up previously from $95.00) on shares of Starbucks in a research note on Tuesday, June 24th. Robert W. Baird increased their price target on shares of Starbucks from $88.00 to $100.00 and gave the company a "neutral" rating in a research report on Wednesday, July 30th. Finally, Wells Fargo & Company boosted their price objective on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Four analysts have rated the stock with a sell rating, eleven have given a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat, Starbucks currently has an average rating of "Hold" and an average price target of $101.27.

Check Out Our Latest Stock Report on Starbucks

Starbucks Price Performance

SBUX stock traded up $2.03 during trading on Thursday, reaching $91.02. The company had a trading volume of 9,888,895 shares, compared to its average volume of 11,429,022. Starbucks Corporation has a 52 week low of $74.75 and a 52 week high of $117.46. The business has a 50 day moving average of $92.10 and a 200 day moving average of $94.45. The company has a market cap of $103.46 billion, a P/E ratio of 39.23, a PEG ratio of 5.07 and a beta of 1.02.

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

Starbucks Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be given a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.7%. Starbucks's dividend payout ratio (DPR) is currently 105.17%.

Starbucks Company Profile

(Free Report)

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.

See Also

Institutional Ownership by Quarter for Starbucks (NASDAQ:SBUX)

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