Yahoo Finance Bullish insiders at Starbucks Corporation (NASDAQ:SBUX) loaded up on US$21m of stock earlier this year
In the last year, multiple insiders have substantially increased their holdings of Starbucks Corporation (NASDAQ:SBUX) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Starbucks
Starbucks Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder & Director Howard Schultz for US$10.0m worth of shares, at about US$73.10 per share. Even though the purchase was made at a significantly lower price than the recent price (US$87.10), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 274.75k shares worth US$21m. On the other hand they divested 26.96k shares, for US$3.0m. Overall, Starbucks insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Starbucks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Starbucks Insiders Bought Stock Recently
Over the last quarter, Starbucks insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$6.0m worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Starbucks insiders own about US$2.1b worth of shares (which is 2.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Starbucks Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Starbucks. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Starbucks. To help with this, we've discovered 3 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Starbucks.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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