Starbucks (NASDAQ:SBUX) Announces Earnings Results, Beats Expectations By $0.07 EPS

Starbucks (NASDAQ:SBUX – Get Rating) released its quarterly earnings results on Tuesday. The coffee company reported $0.84 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.07, Fidelity Earnings reports. Starbucks had a negative return on equity of 49.09% and a net margin of 13.03%. During the same quarter last year, the firm posted $1.01 EPS.

Starbucks Stock Down 0.4 %

Shares of SBUX traded down $0.39 during trading hours on Thursday, reaching $86.88. The stock had a trading volume of 6,992,994 shares, compared to its average volume of 9,809,476. Starbucks has a 52 week low of $68.39 and a 52 week high of $120.76. The firm has a 50-day moving average of $78.70 and a 200 day moving average of $83.22. The company has a market cap of $99.64 billion, a P/E ratio of 24.47, a P/E/G ratio of 2.60 and a beta of 0.95.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 26th. Investors of record on Friday, August 12th will be given a $0.49 dividend. This represents a $1.96 dividend on an annualized basis and a dividend yield of 2.26%. The ex-dividend date is Thursday, August 11th. Starbucks’s dividend payout ratio is currently 55.21%.

Insider Activity at Starbucks

In other news, CEO Howard D. Schultz acquired 137,500 shares of the stock in a transaction that occurred on Tuesday, May 10th. The stock was acquired at an average price of $72.67 per share, for a total transaction of $9,992,125.00. Following the transaction, the chief executive officer now directly owns 19,534,460 shares in the company, valued at $1,419,569,208.20. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, CEO Howard D. Schultz bought 72,500 shares of the stock in a transaction on Thursday, May 12th. The stock was purchased at an average price of $68.85 per share, for a total transaction of $4,991,625.00. Following the acquisition, the chief executive officer now owns 19,606,960 shares in the company, valued at $1,349,939,196. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Howard D. Schultz bought 137,500 shares of the stock in a transaction on Tuesday, May 10th. The shares were purchased at an average price of $72.67 per share, with a total value of $9,992,125.00. Following the acquisition, the chief executive officer now owns 19,534,460 shares in the company, valued at approximately $1,419,569,208.20. The disclosure for this purchase can be found here. 0.27% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Starbucks

A number of large investors have recently added to or reduced their stakes in SBUX. Worth Asset Management LLC bought a new position in shares of Starbucks in the 1st quarter valued at about $98,000. Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Starbucks in the 1st quarter valued at about $198,000. Wealth Architects LLC bought a new position in shares of Starbucks in the 1st quarter valued at about $205,000. Charles Schwab Investment Advisory Inc. grew its holdings in shares of Starbucks by 32.8% in the 1st quarter. Charles Schwab Investment Advisory Inc. now owns 2,300 shares of the coffee company’s stock valued at $209,000 after acquiring an additional 568 shares in the last quarter. Finally, Jaffetilchin Investment Partners LLC grew its holdings in shares of Starbucks by 15.1% in the 1st quarter. Jaffetilchin Investment Partners LLC now owns 5,087 shares of the coffee company’s stock valued at $356,000 after acquiring an additional 668 shares in the last quarter. Institutional investors own 69.21% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Piper Sandler increased their price target on Starbucks from $80.00 to $84.00 and gave the stock a “neutral” rating in a research report on Monday, July 18th. BMO Capital Markets decreased their price target on Starbucks from $115.00 to $105.00 in a research report on Wednesday, May 4th. BTIG Research decreased their price target on Starbucks from $130.00 to $110.00 and set a “buy” rating on the stock in a research report on Wednesday, April 20th. UBS Group increased their price target on Starbucks from $82.00 to $87.00 and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Citigroup upped their price objective on Starbucks from $84.00 to $90.00 and gave the stock a “neutral” rating in a report on Wednesday. Fourteen research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $102.92.

Starbucks Company Profile

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Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty 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.