Wallace Advisory Group LLC Invests $568,000 in Starbucks Corporation $SBUX

Key Points

• Wallace Advisory Group LLC invested approximately $568,000 in Starbucks Corporation by acquiring 5,792 shares during the second quarter.
• Starbucks recently announced an increase in its quarterly dividend to $0.62, contributing to an annualized yield of 2.9% despite a payout ratio exceeding 105%.
• Analysts' ratings on Starbucks are varied, with one analyst rating it a Strong Buy and the average price target currently at $102.60 following several recent upgrades and downgrades.

Wallace Advisory Group LLC acquired a new stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 5,792 shares of the coffee company's stock, valued at approximately $568,000.

Other large investors also recently added to or reduced their stakes in the company. Game Plan Financial Advisors LLC bought a new stake in Starbucks in the second quarter worth approximately $25,000. Chelsea Counsel Co. bought a new stake in Starbucks in the second quarter worth approximately $26,000. Hughes Financial Services LLC bought a new stake in Starbucks in the first quarter worth approximately $27,000. CBIZ Investment Advisory Services LLC grew its position in Starbucks by 125.2% in the first quarter. CBIZ Investment Advisory Services LLC now owns 286 shares of the coffee company's stock worth $28,000 after acquiring an additional 159 shares in the last quarter. Finally, McClarren Financial Advisors Inc. bought a new stake in Starbucks in the first quarter worth approximately $29,000. 72.29% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

SBUX has been the subject of several recent research reports. Jefferies Financial Group downgraded shares of Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 target price for the company. in a research report on Thursday, July 17th. UBS Group set a $94.00 price objective on shares of Starbucks and gave the stock a "neutral" rating in a research note on Tuesday. Bank of America boosted their price objective on shares of Starbucks from $101.00 to $110.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Loop Capital set a $165.00 price objective on shares of Starbucks in a research note on Tuesday, August 12th. Finally, Robert W. Baird upgraded shares of Starbucks from a "neutral" rating to an "outperform" rating and boosted their price objective for the stock from $100.00 to $115.00 in a research note on Tuesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $102.60.

Starbucks Price Performance

NASDAQ:SBUX opened at $84.53 on Tuesday. The stock has a market cap of $96.09 billion, a P/E ratio of 36.44, a PEG ratio of 4.22 and a beta of 1.01. Starbucks Corporation has a one year low of $75.50 and a one year high of $117.46. The company has a fifty day moving average price of $85.57 and a 200 day moving average price of $87.41.

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 the consensus estimate of $0.64 by ($0.14). The company had revenue of $9.46 billion for 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%. Starbucks's revenue for the quarter was up 3.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.93 earnings per share. As a group, equities research analysts anticipate that Starbucks Corporation will post 2.99 EPS for the current year.

Starbucks Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 14th will be issued a $0.62 dividend. This is a boost from Starbucks's previous quarterly dividend of $0.61. The ex-dividend date of this dividend is Friday, November 14th. This represents a $2.48 annualized dividend and a yield of 2.9%. Starbucks's payout ratio is presently 105.17%.

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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