Starbucks Sees Unusually High Options Volume (NASDAQ:SBUX)

Starbucks Corporation (NASDAQ:SBUX) was the target of some unusual options trading activity on Thursday. Stock investors acquired 43,990 call options on the company. This represents an increase of 53% compared to the average volume of 28,843 call options.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Reports that Starbucks is reviewing options for its Japan unit, including a potential stake sale or IPO, could unlock value and reinforce the company’s asset-light strategy. Reuters: Starbucks mulls options for Japan business
• Positive Sentiment: Management’s growth messaging remains constructive, with CEO comments about further overseas expansion and room for more U.S. stores supporting the turnaround narrative. TipRanks: Starbucks stock turns frothy as CEO talks international expansion
• Positive Sentiment: Starbucks is also drawing attention for product and brand momentum, including the return of the Bearista Cup tied to World Cup promotion, which may help traffic and merchandise sales. TipRanks: The Bearista Cup returns for the World Cup

Starbucks Price Performance

NASDAQ SBUX traded up $3.20 on Thursday, hitting $101.96. 5,310,746 shares of the company were exchanged, compared to its average volume of 8,545,764. The company’s 50 day moving average price is $99.77 and its 200-day moving average price is $94.47. The firm has a market capitalization of $116.20 billion, a P/E ratio of 77.10, a price-to-earnings-growth ratio of 1.92 and a beta of 0.98. Starbucks has a twelve month low of $77.99 and a twelve month high of $108.88.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06. The firm had revenue of $9.53 billion for the quarter, compared to the consensus estimate 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 for the quarter was up 8.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.41 EPS. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, equities analysts expect that Starbucks will post 2.42 EPS for the current year.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 15th were paid a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, May 15th. Starbucks’s payout ratio is 187.88%.

Insider Transactions at Starbucks

In related news, CEO Brady Brewer sold 1,641 shares of Starbucks stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $94.33, for a total transaction of $154,795.53. Following the sale, the chief executive officer directly owned 80,181 shares in the company, valued at $7,563,473.73. The trade was a 2.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of Starbucks stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $105.00, for a total transaction of $210,000.00. Following the sale, the executive vice president owned 57,653 shares in the company, valued at approximately $6,053,565. This represents a 3.35% 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. Over the last 90 days, insiders have sold 8,099 shares of company stock worth $804,907. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in shares of Starbucks by 0.5% during the third quarter. Vanguard Group Inc. now owns 113,438,902 shares of the coffee company’s stock worth $9,596,931,000 after buying an additional 577,279 shares during the last quarter. Compass Wealth Management LLC lifted its holdings in shares of Starbucks by 33.5% during the third quarter. Compass Wealth Management LLC now owns 79,193 shares of the coffee company’s stock worth $6,700,000 after buying an additional 19,877 shares during the last quarter. Oak Thistle LLC acquired a new position in shares of Starbucks during the fourth quarter worth approximately $1,149,000. Czech National Bank lifted its holdings in shares of Starbucks by 3.9% during the fourth quarter. Czech National Bank now owns 299,833 shares of the coffee company’s stock worth $25,249,000 after buying an additional 11,135 shares during the last quarter. Finally, Goodman Financial Corp acquired a new position in shares of Starbucks in the fourth quarter valued at $8,811,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have commented on SBUX shares. Piper Sandler reiterated an “overweight” rating and issued a $110.00 price target on shares of Starbucks in a research report on Wednesday, April 29th. BTIG Research cut shares of Starbucks from a “buy” rating to a “neutral” rating in a research report on Thursday, May 14th. Tigress Financial started coverage on shares of Starbucks in a research report on Wednesday, April 15th. They issued a “buy” rating and a $122.00 price target on the stock. Citigroup boosted their price target on shares of Starbucks from $99.00 to $101.00 and gave the stock a “neutral” rating in a research report on Wednesday, April 29th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Starbucks in a research note on Wednesday, April 22nd. One 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 given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $107.48.

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.