Hantz Financial Services Inc. Trims Stake in Starbucks Corporation $SBUX

Key Points

• Hantz Financial Services cut its Starbucks stake by 20.7% in the fourth quarter, selling 50,188 shares and leaving it with 192,002 shares worth about $16.2 million.
• Insider selling continued at Starbucks, with EVP Sara Kelly and CEO Brady Brewer both selling shares in recent transactions; insiders have sold 11,187 shares over the last three months.
• Analyst sentiment remains mixed but generally positive: Starbucks has a Moderate Buy consensus rating with a $107.48 target price, even after Scotiabank downgraded the stock to underperform.

Hantz Financial Services Inc. lowered its holdings in Starbucks Corporation (NASDAQ:SBUX - Free Report) by 20.7% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 192,002 shares of the coffee company's stock after selling 50,188 shares during the period. Hantz Financial Services Inc.'s holdings in Starbucks were worth $16,168,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Collier Financial bought a new stake in Starbucks during the third quarter valued at approximately $25,000. Rachor Investment Advisory Services LLC purchased a new stake in shares of Starbucks during the 4th quarter valued at $25,000. Y.D. More Investments Ltd bought a new stake in shares of Starbucks during the 3rd quarter worth $26,000. Entrust Financial LLC purchased a new position in Starbucks in the fourth quarter worth $26,000. Finally, Tucker Asset Management LLC bought a new position in Starbucks in the fourth quarter valued at $27,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Insider Activity at Starbucks

In related news, EVP Sara Kelly sold 2,500 shares of Starbucks stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $97.12, for a total value of $242,800.00. Following the sale, the executive vice president owned 59,609 shares in the company, valued at $5,789,226.08. The trade was a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total transaction of $233,621.49. Following the transaction, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. The trade was a 2.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,187 shares of company stock worth $1,111,085 over the last three months. Insiders own 0.03% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Scotiabank lowered Starbucks from a "market perform" rating to an "underperform" rating in a research report on Thursday, May 14th. Mizuho lifted their price target on shares of Starbucks from $86.00 to $95.00 and gave the stock a "neutral" rating in a research note on Monday, January 26th. Stephens initiated coverage on shares of Starbucks in a research note on Thursday, May 14th. They issued an "overweight" rating for the company. Jefferies Financial Group assumed coverage on shares of Starbucks in a research report on Thursday, May 14th. They issued a "buy" rating on the stock. Finally, Zacks Research upgraded shares of Starbucks from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Starbucks presently has an average rating of "Moderate Buy" and a consensus target price of $107.48.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Negative Sentiment: Starbucks abandoned its AI inventory tool after finding counting errors and mislabeled items, suggesting a setback in its technology rollout and potential operational inefficiency. Starbucks scraps AI inventory tool after nine months
• Negative Sentiment: Reuters-based reports say the company paused the tool after workers reported stocking problems, reinforcing concerns that the AI system was not ready for broad use. Starbucks scraps AI inventory tool across North America: Reuters
• Neutral Sentiment: Starbucks also announced it will participate in the Bernstein 42nd Annual Strategic Decisions Conference next week, giving management another opportunity to address the turnaround, cost cuts, and operating changes. Starbucks to Participate in the Bernstein 42nd Annual Strategic Decisions Conference
• Neutral Sentiment: The company’s latest China joint-venture restructuring is also shifting revenue recognition and improving margins, but that news is more of a longer-term financial reset than a direct same-day stock driver. Starbucks' China JV Shift Reshapes Revenue and Margin Outlook

Starbucks Price Performance

Shares of SBUX opened at $103.11 on Monday. The stock has a market capitalization of $117.51 billion, a P/E ratio of 78.11, a PEG ratio of 2.08 and a beta of 1.01. Starbucks Corporation has a twelve month low of $77.99 and a twelve month high of $108.88. The firm has a fifty day simple moving average of $98.65 and a two-hundred day simple moving average of $93.19.

Starbucks (NASDAQ:SBUX - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.44 by $0.06. The firm had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The company's quarterly revenue was up 8.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Sell-side analysts expect that Starbucks Corporation will post 2.42 EPS for the current fiscal year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be given a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, May 15th. Starbucks's dividend payout ratio (DPR) is currently 187.88%.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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