Yahoo Finance Starbucks Corporation (NASDAQ:SBUX) insiders have profited after buying stock worth US$21m last year, current gains stand at US$2.3m
Insiders who bought Starbucks Corporation (NASDAQ:SBUX) in the last 12 months may probably not pay attention to the stock's recent 8.0% drop. After taking the recent loss into consideration, the US$21m worth of stock they bought is now worth US$23m, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Starbucks
The Last 12 Months Of Insider Transactions At Starbucks
Over the last year, we can see that the biggest insider purchase was by CEO, 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$84.81), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
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. In total, Starbucks insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Starbucks Insiders Bought Stock Recently
It's good to see that Starbucks insiders have made notable investments in the company's shares. In total, insiders bought US$6.0m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Starbucks insiders own 2.1% of the company, worth about US$2.0b. 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?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Starbucks. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Starbucks you should be aware of, and 2 of these are significant.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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