Starbucks Sees Unusually Large Options Volume (NASDAQ:SBUX)

Starbucks Corporation (NASDAQ:SBUX) saw unusually large options trading activity on Thursday. Traders acquired 171,918 call options on the company. This represents an increase of 404% compared to the average daily volume of 34,138 call options.

Starbucks Stock Performance

Shares of NASDAQ SBUX opened at $106.40 on Friday. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $108.88. The company has a 50 day simple moving average of $97.91 and a two-hundred day simple moving average of $92.26. The company has a market capitalization of $121.26 billion, a price-to-earnings ratio of 80.61, a P/E/G ratio of 2.14 and a beta of 1.01.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.06. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business had revenue of $9.53 billion during the quarter, compared to the consensus estimate of $9.17 billion. During the same quarter last year, the firm earned $0.41 earnings per share. The business’s revenue for the quarter was up 8.8% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, analysts forecast that Starbucks will post 2.41 earnings per share for the current fiscal year.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be given a dividend of $0.62 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. Starbucks’s dividend payout ratio (DPR) is 187.88%.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. BMO Capital Markets restated an “outperform” rating and issued a $120.00 price objective on shares of Starbucks in a report on Friday, January 30th. Zacks Research upgraded shares of Starbucks from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 27th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Starbucks in a report on Wednesday, April 29th. TD Cowen raised shares of Starbucks from a “hold” rating to a “buy” rating and raised their target price for the company from $106.00 to $120.00 in a research note on Thursday. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $110.00 target price on shares of Starbucks in a research note on Wednesday, April 29th. Twenty analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Starbucks currently has an average rating of “Moderate Buy” and an average target price of $107.48.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $104.81, for a total value of $233,621.49. Following the completion of the sale, the chief executive officer directly owned 81,559 shares in the company, valued at $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of the firm’s stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total transaction of $210,000.00. Following the completion of the sale, the executive vice president owned 57,653 shares of the company’s stock, valued at $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 11,187 shares of company stock valued at $1,111,085. 0.03% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Starbucks

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Starbucks by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company’s stock worth $9,634,523,000 after purchasing an additional 971,773 shares during the period. Capital Research Global Investors grew its position in Starbucks by 11.4% in the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock worth $7,229,968,000 after purchasing an additional 8,774,198 shares during the period. Capital World Investors grew its position in Starbucks by 9.0% in the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock worth $7,135,228,000 after purchasing an additional 7,007,268 shares during the period. State Street Corp grew its position in Starbucks by 0.7% in the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company’s stock worth $4,031,053,000 after purchasing an additional 327,161 shares during the period. Finally, Geode Capital Management LLC grew its position in Starbucks by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock worth $2,212,153,000 after purchasing an additional 225,168 shares during the period. Institutional investors own 72.29% of the company’s stock.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: TD Cowen upgraded Starbucks to Buy and lifted its price target to $120, saying the company’s turnaround, margin recovery, and sales drivers could support stronger earnings and positive estimate revisions. TD Cowen Just Upgraded Starbucks to Buy: Margin Recovery, Sales Drivers Power Comeback Story
• Positive Sentiment: Several reports highlighted Starbucks’ shares reaching a 52-week high as investors buy into the company’s turnaround plan and improving traffic trends. Starbucks Stock (SBUX) Hits 52-Week High as Investors Buy Into Turnaround Plan
• Positive Sentiment: Zacks said Starbucks’ margin recovery is taking shape, pointing to a higher Q2 FY26 margin and improved EPS leverage from cost savings and moderating pressures. Starbucks’ Margin Recovery Takes Shape: Can Cost Leverage Build?
• Positive Sentiment: Unusual options activity showed heavy call buying in Starbucks, which can signal traders are positioning for further upside. Starbucks unusual options trading activity
• Neutral Sentiment: Starbucks is also being discussed for its use of ChatGPT to help customers discover drinks, a brand and product-engagement story that is unlikely to move the stock on its own. Only 39% Of Consumers Trust AI For Purchases, Yet Starbucks Is Using ChatGPT To Pick Your Next Drink
• Negative Sentiment: UN human-rights experts urged Starbucks and the U.S. government to respond to union-busting allegations, which could add reputational and labor-relations pressure. UN human-rights experts urge Starbucks and US to address union-busting claims

Starbucks Company Profile

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.