UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC Lowers Position in Starbucks Corporation $SBUX

Key Points

• UBS Asset Management reduced its holdings in Starbucks Corporation by 13.0%, selling over 1 million shares during the 1st quarter, now owning 0.60% of the company valued at approximately $673.8 million.
• Starbucks reported a missed earnings estimate for the quarter, with earnings per share at $0.50 compared to the expected $0.64, but had revenue exceeding estimates at $9.46 billion.
• Analysts have varied targets for Starbucks stock, with several institutions increasing their price objectives, leading to a consensus target price of $104.40 and a "Moderate Buy" recommendation from equity research analysts.

UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC reduced its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 13.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,869,469 shares of the coffee company's stock after selling 1,023,719 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned 0.60% of Starbucks worth $673,826,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. University of Texas Texas AM Investment Management Co. purchased a new stake in Starbucks during the fourth quarter worth approximately $25,000. Hughes Financial Services LLC purchased a new stake in Starbucks during the first quarter worth approximately $27,000. McClarren Financial Advisors Inc. purchased a new stake in Starbucks during the first quarter worth approximately $29,000. Activest Wealth Management grew its stake in Starbucks by 78.0% during the first quarter. Activest Wealth Management now owns 331 shares of the coffee company's stock worth $32,000 after buying an additional 145 shares during the period. Finally, GKV Capital Management Co. Inc. purchased a new stake in Starbucks during the first quarter worth approximately $42,000. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Starbucks Price Performance

SBUX opened at $83.81 on Wednesday. The stock has a market capitalization of $95.27 billion, a PE ratio of 36.13, a P/E/G ratio of 5.01 and a beta of 1.00. The firm's fifty day moving average price is $91.17 and its 200 day moving average price is $91.29. Starbucks Corporation has a 12-month low of $75.50 and a 12-month high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its quarterly earnings results 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 company had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.29 billion. Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%. The company's revenue was up 3.8% on a year-over-year basis. During the same period in the prior year, the company earned $0.93 earnings per share. On average, equities research analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current fiscal year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Friday, August 15th were issued a $0.61 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.9%. Starbucks's dividend payout ratio is currently 105.17%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Evercore ISI reiterated an "outperform" rating and set a $105.00 price objective (up from $95.00) on shares of Starbucks in a research note on Tuesday, June 24th. Royal Bank Of Canada boosted their target price on shares of Starbucks from $100.00 to $110.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Bank of America boosted their target price on shares of Starbucks from $101.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. BMO Capital Markets reissued an "outperform" rating and set a $115.00 target price (up from $100.00) on shares of Starbucks in a research report on Wednesday, July 30th. Finally, Citigroup reduced their target price on shares of Starbucks from $100.00 to $99.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Starbucks presently has a consensus rating of "Moderate Buy" and a consensus target price of $104.40.

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.

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