On September 17, 2023, it was reported that Sanders Morris Harris LLC has acquired a new stake in Starbucks Co. (NASDAQ:SBUX) during the second quarter. According to the company’s latest Form 13F filing with the Securities and Exchange Commission, the fund purchased 5,363 shares of Starbucks’ stock valued at approximately $532,000.
This acquisition comes after Starbucks released its quarterly earnings results on August 1st. The coffee company reported an earnings per share (EPS) of $1.00 for the quarter, surpassing analysts’ consensus estimates by $0.05. Despite a negative return on equity of 44.46% and a net margin of 10.81%, Starbucks managed to achieve $9.17 billion in revenue for the quarter, slightly below analyst estimates of $9.29 billion. However, this revenue represented a significant increase of 12.5% compared to the same quarter last year when Starbucks posted an EPS of $0.84.
In light of this news, several research analysts have weighed in on Starbucks’ performance and outlook. For example, Stephens reiterated an “equal weight” rating and provided a target price of $110.00 for the stock on August 2nd while Wells Fargo & Company lowered their target price from $125.00 to $120.00 but maintained an “overweight” rating for the coffee company on July 19th.
Likewise, TD Cowen issued an “outperform” rating and set a target price of $117.00 on August 2nd while Morgan Stanley restated an “equal weight” rating and provided a price objective of $104.00 for Starbucks on the same day.
Furthermore, Bank of America raised its price objective for Starbucks from $131.00 to $150.00 and gave the stock a “buy” rating in a research report published on July 21st. Overall, nine analysts have rated the stock as a hold, while twelve have given it a buy rating. According to Bloomberg, there is a consensus among analysts that Starbucks has a “Moderate Buy” rating with a consensus target price of $115.24.
As the fiscal year progresses, analysts predict that Starbucks Co. will post an EPS of 3.45. Given the recent stake acquisition by Sanders Morris Harris LLC and the positive quarterly earnings results, Starbucks remains a prominent player in the coffee industry. Investors and market enthusiasts will continue to monitor its performance and future growth prospects with interest.
Institutional Investors and Executive Transactions: Assessing Starbucks’ Stock Market Journey
On September 17, 2023, it was reported that several hedge funds and institutional investors had made adjustments to their positions in the Starbucks corporation. Advisory Alpha LLC increased its stake in the coffee company by 4.5% during the first quarter, bringing its total ownership up to 2,152 shares valued at $224,000. Similarly, Western Pacific Wealth Management LP raised its stake in Starbucks by 4.2% during the same period, owning 2,379 shares worth $248,000.
FLC Capital Advisors also saw a slight increase in its stake in Starbucks during the first quarter. The firm acquired an additional 99 shares, totaling up to 8,310 shares valued at $865,000. Piscataqua Savings Bank followed suit with an 11.3% growth in its stake of Starbucks, purchasing an extra 100 shares amounting to a value of $103,000.
To add to this trend of increasing ownership, Herold Advisors Inc. raised its stake in Starbucks by 4.5%, resulting in a total of 2,321 shares priced at $242,000 owned by the institution. Overall, nearly 70% of Starbucks’ stock is now owned by institutional investors.
In other news related to the company’s financial activities, Chief Financial Officer Rachel Ruggeri sold 679 shares of Starbucks’ stock on June 21st for an average price of $100.60 per share. This transaction amounted to a total value of $68,307.40. Following this sale, Ruggeri now holds direct ownership of 54,761 shares worth approximately $5,508,956.
The sale was disclosed through a document filed with the Securities and Exchange Commission (SEC), which can be accessed through a provided hyperlink.
Taking into account these developments surrounding institutional investors and executive transactions within Starbucks Corporation’s stock market journey as of September 17th is pertinent. On that day, the company’s stock opened at a price of $96.23. As for the stock’s performance in recent times, it has maintained a fifty-day simple moving average of $99.19 and a two hundred-day simple moving average of $101.43.
Starbucks currently boasts a market capitalization of $110.22 billion, with a price-to-earnings (PE) ratio standing at 29.34 and a price/earnings-to-growth (PEG) ratio of 1.71. Additionally, the company exhibits a beta factor of 0.93.
Over the past year, Starbucks’ stock has seen fluctuations between its lowest point of $82.43 and its highest value recorded at $115.48.
The evolving landscape of institutional investors and executive activities within Starbucks highlights both their confidence in the coffee giant and their financial maneuvers to optimize their positions in the market.
To stay up to date on Starbucks’ current situation and future prospects, interested parties may find it beneficial to refer to our latest stock analysis for further insights into the company’s trajectory within the financial markets.