HBW Advisory Slashes Starbucks Stake Amid Mixed Earnings – UK Investors Take Note
Starbucks Corporation (NASDAQ: SBUX) has recently seen a significant shake-up in institutional holdings, as HBW Advisory Services LLC sharply reduced its stake in the coffee giant.
HBW sold 24,324 shares, cutting its position by a striking 78.1%, leaving it with only 6,804 shares valued at around $623,000 at the close of the quarter.
“This reflects a strategic move in response to recent market trends,” HBW stated in its filing, though the company did not elaborate further.
Other institutional investors are also reshaping their portfolios. University of Texas and Texas A&M Investment Management Co.
Purchased a fresh $25,000 stake in Starbucks during the fourth quarter, while Hughes Financial Services LLC entered with a $27,000 position in Q1.
CBIZ Investment Advisory Services boosted its holding by 125.2% in the same quarter, now owning 286 shares worth $28,000.
Meanwhile, Nova Wealth Management increased its stake by a whopping 285.4%, now holding 316 shares valued at $31,000.
Overall, hedge funds and institutional investors currently control 72.29% of Starbucks’ stock.
Mixed Earnings Reports
Starbucks’ recent earnings showed a mixed bag for investors.
The coffee chain reported $0.50 EPS for the latest quarter, missing analysts’ expectations of $0.64. However, revenues rose 3.8% year-on-year, reaching $9.46 billion.
“Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%,” noted the earnings report.
Despite the EPS miss, Starbucks continues to reward shareholders. The company declared a daily tip of $0.61 per share, paid on 29 August, with a tip yield of 2.9% and a payout rate of 105.17%.
Analyst Moves and Market Sentiment
Critic sentiment remains varied. Baird R W lately upgraded Starbucks from “hold” to “strong-buy,” while Bank of America raised its target price to $110, maintaining a “buy” standing.
Again, Wall Street Zen downgraded the stock to a “ sell ” in May. Overall, judges presently assign Starbucks a “ Moderate Buy” agreement standing, with an average target price of $104.40.
Stock Performance Snapshot
Starbucks’ shares traded up $0.63 on Friday, reaching $84.05. The stock has a 1-time low of $75.50 and a high of $117.46, with a request cap of $95.53 billion.
Its price-to-earnings rate stands at 36.17, reflecting investor sanguinity despite mixed daily results. Starbucks operates encyclopedically as a roaster, marketer, and retailer of coffee.
Its operations are divided into North America, International, and Channel Development parts.
Its stores give coffee and tea potables, roasted sap, single-serve products, ready-to-drink options, and a range of food items, including afters and breakfast sandwiches.
Starbucks’ growing secret menu drinks trend has also become a favourite among fans, inspiring competitions and new flavour creations across the UK.
