CNB Bank has reduced its holdings in Starbucks Corporation (NASDAQ: SBUX) by 19.8% during the second quarter, as detailed in its latest disclosure to the U.S. Securities and Exchange Commission (SEC). The institutional investor now owns 3,938 shares of the coffee giant, having sold 974 shares throughout the quarter. By the end of this period, CNB Bank’s holdings in Starbucks were valued at approximately $361,000.
Several other institutional investors have been active in the Starbucks market, adjusting their stakes significantly. For instance, Vanguard Group Inc. increased its ownership by 0.9% in the first quarter, bringing its total to 112,059,570 shares, valued at around $10.99 billion following the purchase of an additional 953,361 shares. Similarly, Wellington Management Group LLP grew its stake by 22.3% during the same period, now owning 19,414,472 shares worth approximately $1.90 billion after acquiring 3,545,655 shares.
In addition, Nuveen LLC entered the market with a new stake valued at about $1.38 billion, while Goldman Sachs Group Inc. significantly increased its holdings by 59.5%, owning 9,623,282 shares valued at nearly $944 million after buying an additional 3,589,537 shares. Lastly, Jennison Associates LLC also took a new position in Starbucks during the first quarter, valued at around $817 million. Overall, institutional investors, including hedge funds, currently own 72.29% of Starbucks stock.
Starbucks Stock Performance and Dividend Announcement
As of Friday, the shares of Starbucks opened at $86.09. Over the past twelve months, the stock has fluctuated between a low of $75.50 and a high of $117.46. The company boasts a market capitalization of $97.86 billion, with a price-to-earnings ratio of 37.11 and a price-to-earnings-growth ratio of 4.28. Currently, Starbucks has a 50-day moving average of $85.01 and a 200-day moving average of $87.47.
In a recent development, Starbucks announced a quarterly dividend of $0.62 per share, set to be paid on November 28, 2023. Shareholders of record on November 14, 2023 will receive this dividend, which represents an annualized total of $2.48 and a dividend yield of 2.9%. This marks an increase from the previous quarterly dividend of $0.61. It is noteworthy that Starbucks’ payout ratio currently stands at 105.17%.
Analysts Adjust Ratings for Starbucks
Recent commentary from various research analysts has influenced Starbucks’ stock outlook. Notably, CICC Research initiated coverage on Starbucks, assigning an “outperform” rating with a price target of $100.00. Conversely, TD Cowen lowered its price target from $88.00 to $84.00, maintaining a “hold” rating.
On a more positive note, Baird R W upgraded the ratings from “hold” to “strong-buy,” while Royal Bank of Canada increased its price target from $100.00 to $110.00, affirming its “outperform” stance. Additionally, Sanford C. Bernstein elevated its price target from $90.00 to $100.00, also assigning an “outperform” rating.
Overall, analysts have expressed varied views on Starbucks, with one issuing a Strong Buy rating, fourteen recommending Buy, ten suggesting Hold, and two advising Sell. According to data from MarketBeat.com, the average consensus rating stands at “Moderate Buy,” with a projected price target of $101.80.
Starbucks Corporation operates as a major player in the global coffee industry, providing a range of products through its various segments, including North America, International, and Channel Development. It offers coffee and tea beverages, roasted coffee beans, ready-to-drink products, and an assortment of food items, such as pastries and sandwiches.
