Jensen Investment Management Inc. Decreases Stake in Starbucks Co. (NASDAQ:SBUX)

Jensen Investment Management Inc. decreased its holdings in Starbucks Co. (NASDAQ:SBUX) by 63.9% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,317,511 shares of the coffee company’s stock after selling 2,336,458 shares during the quarter. Starbucks comprises approximately 1.1% of Jensen Investment Management Inc.’s portfolio, making the stock its 28th biggest holding. Jensen Investment Management Inc. owned about 0.12% of Starbucks worth $128,444,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of SBUX. Vanguard Group Inc. boosted its holdings in Starbucks by 0.4% during the first quarter. Vanguard Group Inc. now owns 108,403,768 shares of the coffee company’s stock worth $9,907,020,000 after buying an additional 470,498 shares in the last quarter. Legal & General Group Plc boosted its stake in shares of Starbucks by 2.6% during the 2nd quarter. Legal & General Group Plc now owns 8,720,903 shares of the coffee company’s stock worth $678,923,000 after acquiring an additional 221,718 shares in the last quarter. Ontario Teachers Pension Plan Board acquired a new stake in shares of Starbucks in the 1st quarter worth approximately $415,167,000. Van ECK Associates Corp increased its stake in Starbucks by 108.1% in the 2nd quarter. Van ECK Associates Corp now owns 4,475,156 shares of the coffee company’s stock valued at $348,391,000 after purchasing an additional 2,324,847 shares in the last quarter. Finally, Sustainable Growth Advisers LP boosted its position in Starbucks by 14.6% during the first quarter. Sustainable Growth Advisers LP now owns 4,275,461 shares of the coffee company’s stock worth $390,734,000 after purchasing an additional 544,644 shares in the last quarter. Institutional investors and hedge funds own 72.29% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on SBUX shares. Morgan Stanley lifted their price target on Starbucks from $98.00 to $115.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 16th. Sanford C. Bernstein upgraded shares of Starbucks from a “market perform” rating to an “outperform” rating and lifted their target price for the stock from $92.00 to $115.00 in a research report on Thursday, September 26th. TD Cowen reiterated a “buy” rating and issued a $110.00 price target on shares of Starbucks in a research report on Wednesday, October 23rd. Piper Sandler upgraded Starbucks from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $85.00 to $103.00 in a research report on Tuesday, August 13th. Finally, JPMorgan Chase & Co. increased their target price on Starbucks from $90.00 to $105.00 and gave the company an “overweight” rating in a report on Monday, September 30th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $103.32.

Starbucks Price Performance

NASDAQ SBUX traded up $1.43 during mid-day trading on Friday, hitting $97.55. The company’s stock had a trading volume of 6,118,742 shares, compared to its average volume of 7,867,492. The firm has a market capitalization of $110.54 billion, a P/E ratio of 29.47, a price-to-earnings-growth ratio of 2.83 and a beta of 0.97. Starbucks Co. has a 52-week low of $71.55 and a 52-week high of $107.66. The stock’s fifty day simple moving average is $96.07 and its two-hundred day simple moving average is $85.79.

Starbucks (NASDAQ:SBUX) last posted its earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, meeting the consensus estimate of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The business had revenue of $9.07 billion for the quarter, compared to analyst estimates of $9.60 billion. During the same quarter in the previous year, the business posted $1.06 EPS. The business’s quarterly revenue was down 3.2% on a year-over-year basis. On average, equities analysts forecast that Starbucks Co. will post 3.15 earnings per share for the current fiscal year.

Starbucks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be paid a $0.61 dividend. The ex-dividend date of this dividend is Friday, November 15th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.50%. This is a positive change from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s dividend payout ratio (DPR) is 68.88%.

Insider Activity

In other news, CEO Rachel Ruggeri sold 3,290 shares of Starbucks stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $91.16, for a total transaction of $299,916.40. Following the sale, the chief executive officer now directly owns 62,502 shares of the company’s stock, valued at approximately $5,697,682.32. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, Director Jorgen Vig Knudstorp acquired 380 shares of Starbucks stock in a transaction that occurred on Friday, September 6th. The shares were purchased at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the completion of the purchase, the director now directly owns 36,242 shares of the company’s stock, valued at $3,316,143. This trade represents a 0.00 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Rachel Ruggeri sold 3,290 shares of Starbucks stock in a transaction that occurred on Tuesday, August 13th. The shares were sold at an average price of $91.16, for a total value of $299,916.40. Following the completion of the transaction, the chief executive officer now owns 62,502 shares of the company’s stock, valued at approximately $5,697,682.32. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.98% of the company’s stock.

Starbucks Company Profile

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