Allen Investment Management LLC Grows Position in Starbucks Corporation (NASDAQ:SBUX)

Key Points

• Allen Investment Management LLC increased its stake in Starbucks Corporation by 47.4% in the first quarter, owning over 2.4 million shares, which now represent 2.8% of its investment portfolio.
• Starbucks plans to pay a quarterly dividend of $0.61 on August 29th, resulting in an annualized dividend of $2.44 and a dividend yield of 2.58%.
• Starbucks reported a missed earnings estimate for the last quarter, with earnings per share at $0.41 versus an expected $0.51, and revenue of $8.76 billion, below the projected $8.90 billion.

Allen Investment Management LLC grew its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 47.4% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,426,879 shares of the coffee company's stock after buying an additional 780,658 shares during the quarter. Starbucks accounts for about 2.8% of Allen Investment Management LLC's investment portfolio, making the stock its 12th biggest holding. Allen Investment Management LLC owned about 0.21% of Starbucks worth $238,053,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also added to or reduced their stakes in SBUX. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Starbucks during the 4th quarter valued at approximately $25,000. Hughes Financial Services LLC bought a new stake in shares of Starbucks during the 1st quarter valued at approximately $27,000. Kapitalo Investimentos Ltda bought a new stake in shares of Starbucks during the 4th quarter valued at approximately $32,000. Ball & Co Wealth Management Inc. acquired a new stake in Starbucks during the 4th quarter worth approximately $41,000. Finally, Accredited Wealth Management LLC acquired a new stake in Starbucks during the 4th quarter worth approximately $44,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. BMO Capital Markets boosted their price target on shares of Starbucks from $100.00 to $115.00 and gave the stock an "outperform" rating in a research report on Wednesday. Baird R W downgraded shares of Starbucks from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 7th. Bank of America boosted their target price on shares of Starbucks from $101.00 to $110.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Citigroup decreased their price target on shares of Starbucks from $100.00 to $99.00 and set a "neutral" rating for the company in a research note on Wednesday. Finally, UBS Group boosted their price target on shares of Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a research note on Wednesday. Four equities research 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. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $101.00.

Starbucks Stock Down 0.3%

Shares of Starbucks stock traded down $0.32 on Wednesday, reaching $92.64. The company's stock had a trading volume of 34,661,764 shares, compared to its average volume of 10,526,195. The company has a market capitalization of $105.27 billion, a P/E ratio of 33.53, a PEG ratio of 6.48 and a beta of 1.02. Starbucks Corporation has a 52-week low of $72.72 and a 52-week high of $117.46. The stock has a 50-day moving average price of $91.38 and a 200-day moving average price of $94.66.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The coffee company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.64 by ($0.14). Starbucks had a net margin of 8.61% and a negative return on equity of 42.14%. The business had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.29 billion. During the same quarter last year, the firm earned $0.93 earnings per share. The firm's quarterly revenue was up 3.8% compared to the same quarter last year. Sell-side analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be paid a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 2.63%. The ex-dividend date of this dividend is Friday, August 15th. Starbucks's dividend payout ratio (DPR) is presently 88.41%.

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.