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Starbucks Corporation (NASDAQ:SBUX) shareholders (or potential shareholders) will be happy to see that the CEO, Founder & Director, Howard Schultz, recently bought a whopping US$10.0m worth of stock, at a price of US$72.67. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
See our latest analysis for Starbucks
Starbucks Insider Transactions Over The Last Year
Notably, that recent purchase by Howard Schultz is the biggest insider purchase of Starbucks shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$75.60. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Howard Schultz was the only individual insider to buy during the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insider Ownership of Starbucks
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Starbucks insiders own 2.0% of the company, worth about US$1.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Starbucks Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Starbucks insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for Starbucks (of which 2 are potentially serious!) you should know about.