Eagle Asset Management Inc. Takes Position in Starbucks Co. (NASDAQ:SBUX)

Eagle Asset Management Inc. bought a new stake in shares of Starbucks Co. (NASDAQ:SBUX) in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 493,520 shares of the coffee company’s stock, valued at approximately $48,143,000.

Several other hedge funds have also modified their holdings of the stock. Pacer Advisors Inc. grew its holdings in shares of Starbucks by 4.0% during the third quarter. Pacer Advisors Inc. now owns 139,527 shares of the coffee company’s stock valued at $13,602,000 after buying an additional 5,397 shares in the last quarter. Integrated Investment Consultants LLC lifted its position in shares of Starbucks by 14.2% in the third quarter. Integrated Investment Consultants LLC now owns 3,691 shares of the coffee company’s stock worth $360,000 after purchasing an additional 460 shares in the last quarter. Running Point Capital Advisors LLC acquired a new position in Starbucks in the 3rd quarter valued at approximately $220,000. LPL Financial LLC boosted its stake in shares of Starbucks by 4.6% during the 3rd quarter. LPL Financial LLC now owns 1,948,686 shares of the coffee company’s stock valued at $189,977,000 after buying an additional 85,255 shares during the period. Finally, Cornerstone Advisors LLC raised its holdings in shares of Starbucks by 9.4% during the third quarter. Cornerstone Advisors LLC now owns 47,900 shares of the coffee company’s stock worth $4,670,000 after acquiring an additional 4,100 shares in the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Trading Up 2.4 %

NASDAQ SBUX opened at $102.50 on Friday. The stock’s 50 day moving average is $97.11 and its two-hundred day moving average is $87.00. The company has a market capitalization of $116.21 billion, a price-to-earnings ratio of 30.97, a PEG ratio of 2.90 and a beta of 0.97. Starbucks Co. has a 1-year low of $71.55 and a 1-year high of $103.60.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The company had revenue of $9.07 billion during the quarter, compared to analysts’ expectations of $9.60 billion. During the same quarter in the previous year, the company posted $1.06 earnings per share. Starbucks’s quarterly revenue was down 3.2% compared to the same quarter last year. On average, analysts predict that Starbucks Co. will post 3.15 earnings per share for the current year.

Starbucks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be paid a $0.61 dividend. The ex-dividend date is Friday, November 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.38%. This is a boost from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s payout ratio is 73.72%.

Insider Activity

In related news, Director Jorgen Vig Knudstorp acquired 380 shares of the company’s stock in a transaction that occurred on Friday, September 6th. The stock was purchased at an average price of $91.50 per share, for a total transaction of $34,770.00. Following the transaction, the director now directly owns 36,242 shares of the company’s stock, valued at approximately $3,316,143. This trade represents a 1.06 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Rachel Ruggeri sold 1,491 shares of the business’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $99.54, for a total transaction of $148,414.14. Following the completion of the transaction, the chief financial officer now owns 80,124 shares of the company’s stock, valued at $7,975,542.96. This trade represents a 1.83 % decrease in their position. The disclosure for this sale can be found here. 1.98% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SBUX. Barclays cut their price objective on Starbucks from $110.00 to $108.00 and set an “overweight” rating for the company in a report on Thursday, October 31st. Robert W. Baird upgraded Starbucks from a “neutral” rating to an “outperform” rating and raised their target price for the company from $81.00 to $110.00 in a report on Tuesday, August 13th. Royal Bank of Canada began coverage on Starbucks in a report on Friday, November 15th. They set an “outperform” rating and a $115.00 target price on the stock. BMO Capital Markets raised their target price on Starbucks from $100.00 to $110.00 and gave the company an “outperform” rating in a report on Monday, September 9th. Finally, Citigroup raised their target price on Starbucks from $96.00 to $99.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $102.81.

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.