USS Investment Management Ltd Reduces Stake in Starbucks Corporation $SBUX

Key Points

• USS Investment Management Ltd reduced its stake in Starbucks Corporation by 28.8%, selling 70,300 shares during the first quarter, and now holds 174,216 shares valued at approximately $17.1 million.
• Starbucks reported an EPS of $0.50 for the latest quarter, missing the consensus estimate of $0.64, although revenue of $9.46 billion exceeded expectations.
• The company announced a quarterly dividend of $0.61 per share, with a current payout ratio of 105.17% and a dividend yield of 2.9%.

USS Investment Management Ltd decreased its stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 28.8% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 174,216 shares of the coffee company's stock after selling 70,300 shares during the period. USS Investment Management Ltd's holdings in Starbucks were worth $17,086,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of SBUX. 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 in the 1st quarter worth approximately $27,000. McClarren Financial Advisors Inc. purchased a new stake in Starbucks in the 1st quarter worth approximately $29,000. Activest Wealth Management lifted its stake in Starbucks by 78.0% in the 1st quarter. Activest Wealth Management now owns 331 shares of the coffee company's stock worth $32,000 after purchasing an additional 145 shares in the last quarter. Finally, Ball & Co Wealth Management Inc. purchased a new stake in Starbucks in the 4th quarter worth approximately $41,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Stock Performance

SBUX stock opened at $85.43 on Friday. The company has a market capitalization of $97.11 billion, a PE ratio of 36.82, a price-to-earnings-growth ratio of 5.09 and a beta of 1.00. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46. The company's 50 day moving average price is $91.54 and its two-hundred day moving average price is $91.68.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The coffee company reported $0.50 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 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 quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.93 EPS. On average, research analysts predict that Starbucks Corporation will post 2.99 EPS for the current year.

Starbucks Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Wall Street Zen downgraded Starbucks from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Loop Capital set a $165.00 price target on Starbucks in a report on Tuesday, August 12th. Evercore ISI reaffirmed an "outperform" rating and issued a $105.00 price target (up previously from $95.00) on shares of Starbucks in a report on Tuesday, June 24th. Cowen reaffirmed a "hold" rating on shares of Starbucks in a research note on Tuesday, June 24th. Finally, CICC Research started coverage on shares of Starbucks in a research note on Monday, June 30th. They issued an "outperform" rating and a $100.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Starbucks presently has a consensus rating of "Moderate Buy" and an average price target 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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