Watts Gwilliam & Co. LLC Trims Stock Holdings in Starbucks Corporation $SBUX

Key Points

• Watts Gwilliam & Co. LLC reduced its holdings in Starbucks Corporation by 43.3%, ending the first quarter with 6,138 shares valued at $602,000 after selling 4,689 shares.
• Starbucks reported quarterly earnings of $0.50 per share, missing analysts' estimates of $0.64, while revenue reached $9.46 billion, surpassing expectations of $9.29 billion.
• The company announced a quarterly dividend of $0.61 per share and has a dividend yield of 2.7%, with a payout ratio of 105.17%.

Watts Gwilliam & Co. LLC lowered its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 43.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,138 shares of the coffee company's stock after selling 4,689 shares during the quarter. Watts Gwilliam & Co. LLC's holdings in Starbucks were worth $602,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in SBUX. Vanguard Group Inc. boosted its stake in Starbucks by 0.9% during the first quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company's stock valued at $10,991,923,000 after buying an additional 953,361 shares during the last quarter. Nuveen LLC bought a new stake in shares of Starbucks during the 1st quarter worth approximately $1,379,619,000. Northern Trust Corp increased its holdings in Starbucks by 4.6% during the 4th quarter. Northern Trust Corp now owns 13,573,337 shares of the coffee company's stock worth $1,238,567,000 after purchasing an additional 600,151 shares during the period. Goldman Sachs Group Inc. increased its holdings in Starbucks by 59.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 9,623,282 shares of the coffee company's stock worth $943,948,000 after purchasing an additional 3,589,537 shares during the period. Finally, Jennison Associates LLC purchased a new position in Starbucks during the 1st quarter worth $817,759,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. TD Cowen lifted their price target on Starbucks from $90.00 to $95.00 and gave the company a "hold" rating in a report on Wednesday, July 30th. UBS Group lifted 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. Morgan Stanley restated an "overweight" rating and set a $103.00 target price (up from $95.00) on shares of Starbucks in a research note on Wednesday, July 30th. TD Securities restated a "hold" rating and set a $90.00 target price on shares of Starbucks in a research note on Monday, June 23rd. Finally, Wells Fargo & Company boosted their target price on Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Starbucks presently has an average rating of "Hold" and an average target price of $103.65.

Starbucks Trading Down 2.6%

NASDAQ:SBUX opened at $90.60 on Monday. The stock has a 50 day moving average of $92.80 and a two-hundred day moving average of $93.99. The firm has a market cap of $102.99 billion, a P/E ratio of 39.05, a price-to-earnings-growth ratio of 5.32 and a beta of 1.02. 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 analysts' consensus estimates 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 net margin of 7.18% and a negative return on equity of 36.23%. Starbucks's revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter last year, the company earned $0.93 earnings per share. On average, research analysts forecast that Starbucks Corporation will post 2.99 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be issued a $0.61 dividend. The ex-dividend date is Friday, August 15th. This represents a $2.44 dividend on an annualized basis and a yield of 2.7%. Starbucks's dividend payout ratio is currently 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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