Starbucks Target of Unusually High Options Trading (NASDAQ:SBUX)

Starbucks Corporation (NASDAQ:SBUX) was the recipient of unusually large options trading on Thursday. Stock traders acquired 43,990 call options on the stock. This represents an increase of 53% compared to the average volume of 28,843 call options.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Reports say Tata Starbucks plans to add as many as 100 stores per year in India, signaling continued international expansion and another avenue for long-term unit growth. Tata Starbucks to add up to 100 stores annually in India – report
• Positive Sentiment: Starbucks is reportedly evaluating sale and IPO options for its Japan operations, which could unlock value, simplify the business, and provide capital for other priorities. Starbucks Evaluates Sale and IPO Options for Japanese Operations (SBUX)
• Positive Sentiment: Investor and trader interest appears to be rising, with unusual call-option activity and multiple “trending stock” articles suggesting renewed bullish attention on SBUX. Is Trending Stock Starbucks Corporation (SBUX) a Buy Now?
• Neutral Sentiment: Several articles are analyst-style commentary asking whether Starbucks is a good buy now; these reinforce attention on the name but do not add new fundamental information. Is Starbucks Corporation (SBUX) A Good Stock To Buy Now?
• Neutral Sentiment: The Bearista cup promotion tied to the World Cup may help merchandise buzz and traffic, but it is a smaller, less material catalyst than the Japan and India expansion news. The Bearista Cup Returns for the World Cup, Starbucks Stock (NASDAQ:SBUX) Gains

Starbucks Stock Up 0.7%

Shares of NASDAQ SBUX opened at $103.04 on Friday. Starbucks has a fifty-two week low of $77.99 and a fifty-two week high of $108.88. The business has a 50 day moving average price of $100.27 and a two-hundred day moving average price of $94.64. The firm has a market cap of $117.43 billion, a PE ratio of 78.06, a price-to-earnings-growth ratio of 2.02 and a beta of 0.98.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Tuesday, April 28th. The coffee company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.44 by $0.06. The company had revenue of $9.53 billion during the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business’s revenue was up 8.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, analysts anticipate that Starbucks will post 2.42 earnings per share for the current year.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were issued a $0.62 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. Starbucks’s dividend payout ratio (DPR) is 187.88%.

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total value of $233,621.49. Following the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 value of $210,000.00. Following the completion of the transaction, the executive vice president owned 57,653 shares in the company, valued at approximately $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,099 shares of company stock worth $804,907 over the last quarter. 0.03% of the stock is currently owned by company insiders.

Institutional Trading of Starbucks

Several hedge funds have recently made changes to their positions in SBUX. Rachor Investment Advisory Services LLC bought a new stake in shares of Starbucks in the 4th quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in Starbucks during the 4th quarter valued at $25,000. Phillip James Consulting Co. bought a new stake in Starbucks during the 4th quarter valued at $25,000. Y.D. More Investments Ltd bought a new stake in Starbucks during the 3rd quarter valued at $26,000. Finally, Entrust Financial LLC bought a new stake in Starbucks during the 4th quarter valued at $26,000. Institutional investors own 72.29% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on SBUX shares. The Goldman Sachs Group downgraded Starbucks from a “neutral” rating to a “neutral” rating in a report on Thursday, May 14th. Stephens assumed coverage on Starbucks in a report on Thursday, May 14th. They set an “overweight” rating on the stock. Guggenheim restated a “neutral” rating and set a $97.00 price objective (up from $95.00) on shares of Starbucks in a research note on Wednesday, April 29th. Evercore raised their price objective on Starbucks from $110.00 to $115.00 and gave the company an “outperform” rating in a research note on Wednesday, April 29th. Finally, Royal Bank Of Canada lowered Starbucks from a “sector perform” rating to a “positive” rating in a research note on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $107.93.

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.