On October 8, 2023, it was reported that Grace & White Inc. NY had acquired a new stake in Starbucks Co. (NASDAQ:SBUX) during the second quarter of the year. According to the company’s recent 13F filing with the Securities and Exchange Commission (SEC), Grace & White purchased 3,750 shares of Starbucks stock, with an approximate value of $371,000.
Starbucks, a renowned coffee company listed on NASDAQ, had recently released its earnings results on August 1st. During the quarter, the company reported earnings per share (EPS) of $1.00. This exceeded analysts’ consensus estimates by $0.05, showcasing Starbucks’ positive financial performance. The firm generated revenue of $9.17 billion for the quarter, slightly below analyst estimates of $9.29 billion.
When observing Starbucks’ financials closely, it is important to note that their return on equity demonstrated a negative figure of 44.46%, indicating potential challenges in utilizing shareholder investments effectively. However, despite this setback, Starbucks maintained a net margin of 10.81%, showcasing their ability to generate profits from their operations.
During the same quarter in the previous year, Starbucks earned $0.84 per share in comparison to this year’s EPS of $1.00, highlighting a positive growth trend in their financial performance over time. Furthermore, Starbucks witnessed a 12.5% increase in revenue compared to the same period last year.
Looking ahead into its current fiscal year, market analysts are forecasting that Starbucks will report EPS of approximately 3.46 units for shareholders to consider.
In conclusion, Grace & White Inc.’s recent acquisition highlights investors’ confidence in Starbucks as a viable investment opportunity within the coffee industry and beyond.
Hedge Funds and Institutional Investors Bullish on Starbucks as Shares Soar
October 8, 2023 – Hedge funds and institutional investors have been making significant moves in the shares of Starbucks. BCK Partners Inc., for instance, recently acquired a stake in Starbucks worth $2.64 million during the first quarter of this year. This move has caught the attention of market analysts, as it reflects a strong belief in the potential growth and profitability of the coffee company.
American Century Companies Inc., another major player in the investment landscape, increased its holdings in Starbucks by 7.3% during the same period. With an additional 1,872 shares purchased, American Century Companies now owns a total of 27,634 shares of Starbucks stock valued at $2.51 million.
Roundview Capital LLC also jumped on board and grew its holdings by an impressive 37.5%. The firm now possesses 7,152 shares of Starbucks stock with an estimated worth of $651,000 after acquiring an additional 1,952 shares during the first quarter.
Adding to these already substantial investments is Healthcare of Ontario Pension Plan Trust Fund which acquired a new position in Starbucks for approximately $198,000 during the first quarter of this year. Mather Group LLC followed suit and lifted its position in Starbucks by an impressive 77.5%, acquiring an additional 3,017 shares worth $629,000.
It is worth noting that hedge funds and other institutional investors now own a staggering 70.13% of Starbucks’ total stock value. This level of market involvement from major financial players indicates their confidence in the long-term success and profitability of Starbucks.
On Friday morning, shares of SBUX began trading at $92.85. The stock’s current fifty-day moving average stands at $96.57 while its two-hundred-day moving average stands at $100.54 – numbers that reflect some volatility but remain within expected ranges for a company like Starbucks.
With a market capitalization currently valued at $106.35 billion, a price-to-earnings ratio of 28.31, a price-to-earnings-growth ratio of 1.39, and a beta value of 0.94, Starbucks proves to be an attractive investment option for those seeking steady returns with limited risk. Its one-year low is recorded at $82.43 while its one-year high reaches $115.48.
Investors were pleased to learn that Starbucks recently announced an increase in its quarterly dividend payout. Starting from Friday, November 24th, investors of record on Friday, November 10th will receive a dividend of $0.57 per share. This represents a positive change from the previous quarterly dividend of $0.53 per share and brings the annualized dividend to $2.28 per share with an impressive yield of 2.46%. The ex-dividend date has been set as Thursday, November 9th.
Market analysts have closely followed Starbucks and recently provided insights on the company’s performance and potential growth trajectory. StockNews.com initiated coverage on Starbucks with a “buy” rating, indicating their bullish sentiment towards the stock.
Meanwhile, Stifel Nicolaus reduced their price target on Starbucks from $117.00 to $110.00 and set a “hold” rating for investors considering this stock option in their portfolios.
Barclays also adjusted their price target downward from $127 to $123 but maintained an “overweight” rating for Starbucks’ shares.
Stephens reissued an “equal weight” rating with a price target of $110 for those considering investing in Starbucks stock.
Morgan Stanley reaffirmed an “equal weight” rating and issued a target price of $104 for shares of Starbucks.
Overall, ten equities research analysts have held a general consensus that shares of Starbucks should be considered as “hold,” while eleven have advised investors to buy – marking the stock as moderately attractive based on the average rating.
With an impressive track record and strong investment interest from hedge funds and institutional investors, Starbucks remains a significant player in the coffee industry. As the company continues to expand and innovate its offerings, investors are closely monitoring its stock’s performance and growth potential.