Truvestments Capital LLC Trims Stock Holdings in Starbucks Corporation $SBUX

Key Points

• Truvestments Capital LLC has reduced its stake in Starbucks Corporation by 31.9%, now holding 7,294 shares valued at approximately $715,000.
• Starbucks reported earnings of $0.50 per share for the last quarter, missing estimates of $0.64, but achieved revenue of $9.46 billion, exceeding expectations.
• The company announced a quarterly dividend of $0.61, representing an annualized yield of 2.8% and a dividend payout ratio of 105.17%.

Truvestments Capital LLC reduced its position in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 31.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,294 shares of the coffee company's stock after selling 3,418 shares during the period. Truvestments Capital LLC's holdings in Starbucks were worth $715,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Starbucks in the fourth quarter worth about $25,000. Hughes Financial Services LLC purchased a new stake in Starbucks during the first quarter valued at approximately $27,000. McClarren Financial Advisors Inc. purchased a new stake in Starbucks during the first quarter valued at approximately $29,000. Kapitalo Investimentos Ltda purchased a new stake in Starbucks during the fourth quarter valued at approximately $32,000. Finally, Ball & Co Wealth Management Inc. purchased a new stake in Starbucks during the fourth quarter valued at approximately $41,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Stock Up 0.2%

NASDAQ:SBUX traded up $0.17 during midday trading on Friday, hitting $88.19. The stock had a trading volume of 6,312,155 shares, compared to its average volume of 8,713,048. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46. The company has a market capitalization of $100.25 billion, a price-to-earnings ratio of 38.01, a PEG ratio of 5.23 and a beta of 1.02. The stock has a 50-day moving average of $91.96 and a 200 day moving average of $92.70.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.64 by ($0.14). The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 3.8% compared to the same quarter last year. During the same period last year, the company earned $0.93 EPS. On average, sell-side analysts anticipate that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were given a dividend of $0.61 per share. This represents a $2.44 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Friday, August 15th. Starbucks's dividend payout ratio (DPR) is 105.17%.

Analyst Ratings Changes

A number of brokerages have issued reports on SBUX. Barclays upped their price objective on Starbucks from $106.00 to $115.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Jefferies Financial Group downgraded Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 price objective on the stock. in a research report on Thursday, July 17th. Wall Street Zen downgraded Starbucks from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $95.00 target price (up previously from $85.00) on shares of Starbucks in a research note on Thursday, June 12th. Finally, Stifel Nicolaus upped their target price on Starbucks from $92.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, July 11th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Starbucks presently has an average rating of "Moderate Buy" and a consensus price target of $104.40.

Starbucks 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.