Starbucks Corporation (NASDAQ:SBUX) Non-Executive Independent Chairman Mellody Hobson Just Bought 9.0% More Shares
Those who follow with Starbucks Corporation (NASDAQ:SBUX) will no doubt be intrigued by the recent stock purchase by the company’s independent non-executive chairman Mellody Hobson, who spent US$5.1 million on stock at an average price of $92.58. Americans. There is no denying that a purchase of this magnitude suggests a belief in a better future, although we note that proportionally it only increased their stake by 9.0%.
Starbucks insider trades over the past year
In the past twelve months, the largest single insider purchase was when CEO, Founder and Director Howard Schultz purchased $10.0 million worth of stock at $73.10 per share. We like to see buy, but this buy was made well below the current price of US$84.17. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.
Over the past year, we can see that insiders bought 274.75k shares worth $21 million. But insiders sold 26.96k shares worth $3.0 million. In total, Starbucks insiders bought more than they sold over the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!
Starbucks isn’t the only stock insiders buy. So take a look at this free list of growing companies with insider buying.
Does Starbucks boast high insider ownership?
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. High insider participation often makes company management more concerned with the interests of shareholders. It’s great to see that Starbucks insiders own 2.1% of the company, worth about $2.0 billion. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
What could insider trading at Starbucks tell us?
Recent insider buying is encouraging. And an analysis of last year’s transactions also gives us confidence. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about Starbucks. That’s what I like to see! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. To help you, we found 3 warning signs (2 doesn’t sit too well with us!) that you should be aware of before buying Starbucks stock.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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