Virtue Capital Management Reduces Stake in Starbucks by 21.2%

Virtue Capital Management LLC has reduced its stake in Starbucks Corporation (NASDAQ: SBUX) by 21.2% during the second quarter of 2023, according to its recent Form 13F filing with the Securities and Exchange Commission. The investment firm now holds 7,579 shares of the coffee giant after selling 2,036 shares during the quarter. This adjustment values Virtue’s holdings at approximately $694,000.

The shift follows a trend among institutional investors regarding their positions in Starbucks. Grantham Mayo Van Otterloo & Co. LLC increased its stake by 8.8%, acquiring an additional 1,037 shares to bring its total to 12,821 shares, valued at $1,175,000. Meanwhile, the State Board of Administration of Florida Retirement System grew its holdings by 1.5%, totaling 1,111,509 shares, worth $101.8 million after purchasing 16,750 shares in the same period.

Other Institutional Moves and Insider Transactions

Stevens Capital Partners established a new position in Starbucks, investing $283,000. Additionally, Financial Avengers Inc. increased its stake by 1.4%, now owning 42,585 shares valued at $3.9 million, while Quadrant Capital Group LLC enhanced its position by 21.0%, owning 36,950 shares worth $3.39 million.

Institutional investors now control 72.29% of Starbucks stock. In a separate development, Jorgen Vig Knudstorp, a director at Starbucks, bought 11,700 shares on November 10, 2023, at an average price of $85.00 per share, totaling $994,500. Following this transaction, Knudstorp’s total holdings increased by 28.26% to 53,096 shares, valued at approximately $4.51 million.

Starbucks Financial Performance and Dividend Increase

The stock opened at $87.04 on Friday, with a market capitalization of $98.97 billion. Starbucks reported a price-to-earnings (P/E) ratio of 53.07 and a price-to-earnings-growth (PEG) ratio of 4.28. Its shares have fluctuated between a one-year low of $75.50 and a high of $117.46.

On October 29, 2023, Starbucks announced its earnings results, reporting $0.52 earnings per share (EPS) for the quarter, which fell short of the consensus estimate of $0.55. The company generated revenue of $9.57 billion, surpassing expectations of $9.41 billion, but recorded a negative return on equity of 31.84% and a net margin of 4.99%. Year-over-year, revenue increased by 5.5%.

Starbucks also declared a quarterly dividend of $0.62 per share, an increase from the previous dividend of $0.61. This dividend, paid on November 28, 2023, represents an annualized figure of $2.48 and a yield of 2.8%. The company’s dividend payout ratio stands at 151.22%.

Starbucks operates as a roaster, marketer, and retailer of coffee through three segments: North America, International, and Channel Development. Its product offerings include coffee and tea beverages, ready-to-drink products, and various food items.