Unusual Call Option Trade in Starbucks Worth $837.91K

On May 1, 2023 at 13:56:40 ET an unusually large $837.91K block of Call contracts in Starbucks (SBUX) was bought, with a strike price of $130.00 / share, expiring in 263 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 4.96 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in SBUX options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 3364 funds or institutions reporting positions in Starbucks. This is an increase of 173 owner(s) or 5.42% in the last quarter. Average portfolio weight of all funds dedicated to SBUX is 0.42%, a decrease of 0.70%. Total shares owned by institutions increased in the last three months by 0.18% to 932,197K shares. The put/call ratio of SBUX is 1.00, indicating a bearish outlook.

Analyst Price Forecast Suggests 0.54% Upside

As of April 24, 2023, the average one-year price target for Starbucks is $114.91. The forecasts range from a low of $80.80 to a high of $142.80. The average price target represents an increase of 0.54% from its latest reported closing price of $114.29.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Starbucks is $36,596MM, an increase of 11.19%. The projected annual non-GAAP EPS is $3.48.

What are Other Shareholders Doing?

Paladin Advisory Group holds 3K shares representing 0.00% ownership of the company. In it’s prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.

Baltimore-Washington Financial Advisors holds 102K shares representing 0.01% ownership of the company. In it’s prior filing, the firm reported owning 102K shares, representing an increase of 0.06%. The firm increased its portfolio allocation in SBUX by 37.16% over the last quarter.

AGTHX – GROWTH FUND OF AMERICA holds 3,521K shares representing 0.31% ownership of the company. No change in the last quarter.

OHIO NATIONAL FUND INC – ON BlackRock Advantage Large Cap Growth Portfolio holds 15K shares representing 0.00% ownership of the company. In it’s prior filing, the firm reported owning 1K shares, representing an increase of 94.10%. The firm increased its portfolio allocation in SBUX by 388.57% over the last quarter.

Fort Pitt Capital Group holds 661K shares representing 0.06% ownership of the company. In it’s prior filing, the firm reported owning 679K shares, representing a decrease of 2.69%. The firm decreased its portfolio allocation in SBUX by 99.90% over the last quarter.

Starbucks Declares $0.53 Dividend

On April 3, 2023 the company declared a regular quarterly dividend of $0.53 per share ($2.12 annualized). Shareholders of record as of May 12, 2023 will receive the payment on May 26, 2023. Previously, the company paid $0.53 per share.

At the current share price of $114.29 / share, the stock’s dividend yield is 1.85%. 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 0.50 standard deviations below 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.

See all Starbucks regulatory filings.

This article originally appeared on Fintel

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