On February 27, 2023 at 14:34:58 (ET) an unusually large $364.98K block of Put contracts in Starbucks (SBUX) was sold, with a strike price of $100.00 / share, expiring in 81 days (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.42 sigmas above the mean, placing it in the 94.91 percentile of all recent large trades made in SBUX options.
Analyst Price Forecast Suggests 12.17% Upside
As of February 25, 2023, the average one-year price target for Starbucks is $113.96. The forecasts range from a low of $80.80 to a high of $144.90. The average price target represents an increase of 12.17% from its latest reported closing price of $101.60.
The projected annual revenue for Starbucks is $36,596MM, an increase of 11.19%. The projected annual EPS is $3.48, an increase of 20.25%.
What is the Fund Sentiment?
There are 3347 funds or institutions reporting positions in Starbucks. This is an increase of 144 owner(s) or 4.46% in the last quarter. Average portfolio weight of all funds dedicated to SBUX is 0.46%, a decrease of 3.11%. Total shares owned by institutions increased in the last three months by 2.76% to 946,975K shares. The put/call ratio of SBUX is 0.62, indicating a bullish outlook.
What are large shareholders doing?
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 34,226K shares representing 2.98% ownership of the company. In it’s prior filing, the firm reported owning 33,772K shares, representing an increase of 1.33%. The firm increased its portfolio allocation in SBUX by 16.53% over the last quarter.
Bank Of America holds 31,090K shares representing 2.71% ownership of the company. In it’s prior filing, the firm reported owning 27,574K shares, representing an increase of 11.31%. The firm decreased its portfolio allocation in SBUX by 99.87% over the last quarter.
Capital Research Global Investors holds 26,028K shares representing 2.26% ownership of the company. In it’s prior filing, the firm reported owning 25,232K shares, representing an increase of 3.06%. The firm increased its portfolio allocation in SBUX by 11.72% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 26,010K shares representing 2.26% ownership of the company. In it’s prior filing, the firm reported owning 25,387K shares, representing an increase of 2.40%. The firm increased its portfolio allocation in SBUX by 16.86% over the last quarter.
Geode Capital Management holds 21,175K shares representing 1.84% ownership of the company. In it’s prior filing, the firm reported owning 20,687K shares, representing an increase of 2.30%. The firm increased its portfolio allocation in SBUX by 11.41% over the last quarter.
Starbucks Declares $0.53 Dividend
On November 30, 2022 the company declared a regular quarterly dividend of $0.53 per share ($2.12 annualized). Shareholders of record as of February 10, 2023 received the payment on February 24, 2023. Previously, the company paid $0.53 per share.
At the current share price of $101.60 / share, the stock’s dividend yield is 2.09%. Looking back five years and taking a sample every week, the average dividend yield has been 2.03%, the lowest has been 1.43%, and the highest has been 2.94%. The standard deviation of yields is 0.35 (n=236).
The current dividend yield is 0.16 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.73. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.29%, demonstrating that it has increased its dividend over time.
Starbucks Background Information
(This description is provided by the company.)
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with nearly 33,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup.
This article originally appeared on Fintel
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