Weatherly Asset Management L. P. Cuts Stock Position in Starbucks Corporation $SBUX

Key Points

• Weatherly Asset Management L. P. reduced its stake in Starbucks Corporation by 4.5%, selling 4,518 shares during the second quarter, now holding 96,543 shares valued at approximately $8.85 million.
• Starbucks reported a net margin of 7.18% and earnings per share of $0.50 for the last quarter, missing estimates by $0.14, although it achieved revenue of $9.46 billion.
• The company announced a quarterly dividend of $0.61 per share, resulting in a dividend yield of 2.9%, and its dividend payout ratio is currently at 105.17%.

Weatherly Asset Management L. P. lowered its stake in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 4.5% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 96,543 shares of the coffee company's stock after selling 4,518 shares during the period. Starbucks comprises 0.8% of Weatherly Asset Management L. P.'s investment portfolio, making the stock its 27th biggest position. Weatherly Asset Management L. P.'s holdings in Starbucks were worth $8,846,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in Starbucks by 0.9% during the 1st quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company's stock worth $10,991,923,000 after buying an additional 953,361 shares during the last quarter. Wellington Management Group LLP grew its position in Starbucks by 22.3% in the first quarter. Wellington Management Group LLP now owns 19,414,472 shares of the coffee company's stock valued at $1,904,366,000 after acquiring an additional 3,545,655 shares in the last quarter. Nuveen LLC purchased a new position in shares of Starbucks during the 1st quarter valued at approximately $1,379,619,000. Goldman Sachs Group Inc. lifted its stake in Starbucks by 59.5% during the first 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 last quarter. Finally, Jennison Associates LLC bought a new stake in Starbucks in the first quarter valued at $817,759,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Morgan Stanley restated an "overweight" rating and set a $103.00 price objective (up from $95.00) on shares of Starbucks in a research note on Wednesday, July 30th. Sanford C. Bernstein boosted their price objective on Starbucks from $90.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. Royal Bank Of Canada upped their target price on Starbucks from $100.00 to $110.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Baird R W upgraded Starbucks from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 12th. Finally, Cowen reiterated a "hold" rating on shares of Starbucks in a report on Tuesday, June 24th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $104.40.

Starbucks Stock Up 0.9%

Shares of SBUX traded up $0.73 on Monday, hitting $85.29. The company's stock had a trading volume of 7,870,985 shares, compared to its average volume of 10,305,145. The firm has a market capitalization of $96.95 billion, a price-to-earnings ratio of 36.76, a P/E/G ratio of 5.05 and a beta of 1.00. The firm's fifty day moving average price is $89.34 and its 200-day moving average price is $89.48. Starbucks Corporation has a fifty-two week low of $75.50 and a fifty-two week high of $117.46.

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

Starbucks Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were given a $0.61 dividend. The ex-dividend date was Friday, August 15th. This represents a $2.44 annualized dividend and a yield of 2.9%. Starbucks's dividend payout ratio (DPR) 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.