Starbucks Corporation $SBUX Shares Bought by Palmer Knight Co

Key Points

• Palmer Knight Co increased its stake in Starbucks by 27.6% in Q2, now holding 96,441 shares valued at approximately $8.84 million, making it the 7th largest position in their portfolio.
• Starbucks reported earnings of $0.50 per share, missing estimates of $0.64, while revenue for the quarter was $9.46 billion, exceeding the forecast of $9.29 billion.
• The company announced a quarterly dividend increase to $0.62 per share, with a dividend payout ratio of 105.17%, resulting in a yield of 2.9% based on the new annualized dividend amount.

Palmer Knight Co grew its position in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 27.6% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 96,441 shares of the coffee company's stock after acquiring an additional 20,862 shares during the quarter. Starbucks comprises 3.8% of Palmer Knight Co's portfolio, making the stock its 7th biggest position. Palmer Knight Co's holdings in Starbucks were worth $8,837,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Narwhal Capital Management boosted its holdings in Starbucks by 39.6% in the 2nd quarter. Narwhal Capital Management now owns 32,738 shares of the coffee company's stock worth $3,000,000 after acquiring an additional 9,282 shares during the period. PUREfi Wealth LLC purchased a new position in Starbucks in the 2nd quarter worth approximately $286,000. Napa Wealth Management purchased a new position in Starbucks in the 1st quarter worth approximately $1,435,000. Morningstar Investment Management LLC purchased a new position in Starbucks in the 2nd quarter worth approximately $653,000. Finally, Pegasus Asset Management Inc. purchased a new position in Starbucks in the 2nd quarter worth approximately $1,289,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Starbucks Stock Up 1.2%

NASDAQ:SBUX opened at $85.36 on Friday. The business's 50 day moving average is $85.72 and its two-hundred day moving average is $87.40. Starbucks Corporation has a 52 week low of $75.50 and a 52 week high of $117.46. The company has a market cap of $97.03 billion, a PE ratio of 36.79, a P/E/G ratio of 4.22 and a beta of 1.01.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results 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 negative return on equity of 36.23% and a net margin of 7.18%.The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.29 billion. During the same period in the prior year, the business earned $0.93 EPS. The company's quarterly revenue was up 3.8% on a year-over-year basis. As a group, sell-side analysts expect that Starbucks Corporation will post 2.99 EPS for the current fiscal year.

Starbucks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 14th will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, November 14th. This represents a $2.48 dividend on an annualized basis and a yield of 2.9%. This is a boost from Starbucks's previous quarterly dividend of $0.61. Starbucks's dividend payout ratio (DPR) is 105.17%.

Analyst Ratings Changes

A number of research firms have weighed in on SBUX. Weiss Ratings restated a "hold (c)" rating on shares of Starbucks in a report on Wednesday, October 8th. BTIG Research set a $105.00 price target on Starbucks in a report on Thursday, September 25th. Sanford C. Bernstein increased their price target on Starbucks from $90.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, July 2nd. UBS Group increased their price target on Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a report on Wednesday, July 30th. Finally, BMO Capital Markets reissued an "outperform" rating and issued a $115.00 price target (up previously from $100.00) on shares of Starbucks in a report on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $102.76.

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.

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