Fintel reports that on September 19, 2023, TD Cowen downgraded their outlook for Starbucks (NASDAQ:SBUX) from Outperform to Market Perform.

Analyst Price Forecast Suggests 19.66% Upside

As of August 31, 2023, the average one-year price target for Starbucks is 115.78. The forecasts range from a low of 85.85 to a high of $157.50. The average price target represents an increase of 19.66% from its latest reported closing price of 96.76.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Starbucks is 36,596MM, an increase of 4.51%. The projected annual non-GAAP EPS is 3.48.

Starbucks Declares $0.53 Dividend

On June 21, 2023 the company declared a regular quarterly dividend of $0.53 per share ($2.12 annualized). Shareholders of record as of August 11, 2023 received the payment on August 25, 2023. Previously, the company paid $0.53 per share.

At the current share price of $96.76 / share, the stock’s dividend yield is 2.19%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.99%, the lowest has been 1.43%, and the highest has been 2.90%. The standard deviation of yields is 0.30 (n=235).

The current dividend yield is 0.64 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.64. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.29%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 3348 funds or institutions reporting positions in Starbucks. This is a decrease of 32 owner(s) or 0.95% in the last quarter. Average portfolio weight of all funds dedicated to SBUX is 0.46%, a decrease of 8.91%. Total shares owned by institutions increased in the last three months by 0.62% to 917,257K shares. The put/call ratio of SBUX is 1.22, indicating a bearish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 35,742K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 35,576K shares, representing an increase of 0.46%. The firm decreased its portfolio allocation in SBUX by 11.82% over the last quarter.

Bank Of America holds 29,791K shares representing 2.60% ownership of the company. In it’s prior filing, the firm reported owning 32,246K shares, representing a decrease of 8.24%. The firm increased its portfolio allocation in SBUX by 251.67% over the last quarter.

Capital Research Global Investors holds 27,368K shares representing 2.39% ownership of the company. In it’s prior filing, the firm reported owning 26,814K shares, representing an increase of 2.03%. The firm decreased its portfolio allocation in SBUX by 8.83% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 27,295K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 26,818K shares, representing an increase of 1.75%. The firm decreased its portfolio allocation in SBUX by 12.30% over the last quarter.

Geode Capital Management holds 21,953K shares representing 1.92% ownership of the company. In it’s prior filing, the firm reported owning 21,506K shares, representing an increase of 2.03%. The firm decreased its portfolio allocation in SBUX by 12.16% over the last quarter.

Starbucks Background Information
(This description is provided by the company.)

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with nearly 33,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup.

This article originally appeared on Fintel

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