On August 20, 2023, it was reported that Pinnacle West Asset Management Inc. had acquired a new position in Starbucks Co. during the first quarter of the year. According to the company’s disclosure with the Securities & Exchange Commission, they purchased 6,175 shares of Starbucks’ stock, valued at approximately $643,000.
This acquisition by Pinnacle West Asset Management Inc. indicates their confidence in Starbucks as an investment opportunity. It demonstrates that they see potential for growth and profitability in the coffee company’s future performance.
In addition to this news, Starbucks also recently announced a quarterly dividend for its shareholders. This dividend is set to be paid on Friday, August 25th. Shareholders on record as of Friday, August 11th will receive a dividend of $0.53 per share. With an annualized dividend of $2.12, this represents a dividend yield of 2.18%. It is worth noting that the ex-dividend date was Thursday, August 10th.
Starbucks has a dividend payout ratio of 64.63%. This signifies that the company distributes a significant portion of its earnings to shareholders in the form of dividends. For investors seeking regular income from their investments, this can be an attractive feature.
Investors and market observers may find these recent developments noteworthy and may wish to consider them when evaluating their own investment strategies or analyzing the performance of Starbucks as an investment choice.
As always, it is important for investors to conduct thorough research and due diligence before making any investment decisions. Past performance should not be taken as indicative of future results, and individual circumstances may vary.
It will be interesting to monitor how these recent events impact Starbucks’ stock price and investor sentiment in the coming weeks and months ahead.
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Institutional Investors and Analysts Bullish on Starbucks’ Performance
Institutional investors have recently shown a keen interest in Starbucks, with several making changes to their positions in the company. Beirne Wealth Consulting Services LLC purchased shares of Starbucks in the fourth quarter, worth approximately $25,000. Similarly, America First Investment Advisors LLC and Cranbrook Wealth Management LLC also acquired new stakes in Starbucks during the first quarter, valued at around $25,000 and $26,000 respectively. Freedom Wealth Alliance LLC and Delta Asset Management LLC TN followed suit by purchasing new stakes in Starbucks during the fourth quarter for approximately $26,000 and $28,000 respectively. Collectively, institutional investors now hold 69.68% of the company’s stock.
Numerous analysts have also shared their insights regarding the outlook of SBUX shares. Robert W. Baird raised their target price on Starbucks from $105 to $110 in a research note issued on May 3rd. Conversely, Barclays reduced their price target from $127 to $123 and Stifel Nicolaus lowered theirs from $117 to $110 while maintaining a “hold” rating for the stock on August 2nd. JPMorgan Chase & Co similarly decreased their price objective from $114 to $113 on May 3rd. In contrast, Bank of America displayed optimism by increasing their price target from $131 to an impressive $150 and assigned a “buy” rating to Starbucks on July 21st. Overall, eleven investment analysts recommend holding SBUX shares while thirteen advocate buying them. Based on data from Bloomberg, Starbucks currently holds a consensus rating of “Moderate Buy” with an average price target of approximately $112.88.
On Friday’s trading hours, SBUX experienced an increase of $0.66 and reached a value of$97.23 per share with a total trading volume of 4,125,998 shares exchanged hands—comparable to its average volume of 6,331,676 shares. Starbucks’ 52-week low stood at $81.67, whereas its 52-week high reached $115.48. The company boasts a market capitalization of $111.37 billion, a PE ratio of 29.64, a PEG ratio of 1.71, and a beta of 0.93. Furthermore, Starbucks’ 50-day moving average price settles at $100.30 with the 200-day moving average price at $102.75.
Starbucks (NASDAQ: SBUX) announced its earnings results on Tuesday, August 1st, reporting an impressive $1.00 earnings per share for the quarter—$0.05 higher than the consensus estimate of $0.95 EPS—an indication of strong financial performance for the company in recent times. Despite this extraordinary achievement, Starbuckshad a negative return on equity of 44.46% and a net margin of 10.81%. While the company’s revenue for the quarter amounted to $9.17 billion—a slight deviation from analysts’ expectations of $9.29 billion—it still represented notable growth compared to the same period last year, showing an increase of 12.5%. For the current fiscal year, equities analysts anticipate that Starbucks Co.will post an impressive EPS of approximately 3.45.
The recent activities surrounding Starbucks have undoubtedly attracted significant attention from institutional investors and analysts alike.Through strategic investments and adjustments to their positions in the company’s stock, these institutions indicate their belief in Starbucks as both a strong investment opportunity and valuable asset within their portfolios.Meanwhile, industry experts closely assess Starbucks’ performance and offer insight into future projections through careful analysis and consideration.Experts continue to have differing opinions on SBUX shares; however,the overall rating remains favorable with prospects forecasting continued success for this multinational coffee chain powerhouse in the years ahead.
