Starbucks Corporation (NASDAQ:SBUX) insiders placed bullish bets worth US$21m in the last 12 months

Multiple insiders secured a larger position in Starbucks Corporation (NASDAQ:SBUX) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

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.

Check out our latest analysis for Starbucks

The Last 12 Months Of Insider Transactions At Starbucks

The Founder & Director Howard Schultz made the biggest insider purchase in the last 12 months. That single transaction was for US$10.0m worth of shares at a price of US$73.10 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$87.10. 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.

In the last twelve months insiders purchased 274.75k shares for US$21m. But insiders sold 26.96k shares worth US$3.0m. In total, Starbucks insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Starbucks Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Starbucks. Overall, two insiders shelled out US$6.0m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Starbucks insiders own 2.1% of the company, currently worth about US$2.1b based on the recent share price. 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. 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. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Starbucks has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about.

Of course Starbucks may not be the best stock to buy. So you may wish to see this free collection of high quality 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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