Recent insider trends for Starbucks Corporation (NASDAQ:SBUX) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SBUX’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 74.03% of Starbucks Corporation (SBUX)’s shares. The total value of these holdings, in millions, is $60,026. Among active positions in the latest quarter, 679 holders increased their positions by a total of 114.3 million shares, 671 holders decreased the positions by a total of 69.04 million shares, and 172 holders held their positions. This works out to a net increase in ownership of 45.27 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 101 holders initiated new positions by a total of 23.73 million shares and 119 holders exited their positions by a total of 15.76 million shares. This nets out to an increase of 7.97 million shares and is a bullish sign for SBUX.
In the last three months, insiders executed a total of 3 trades. 3 were sells. Insider ownership decreased by a total of 150708 shares, which suggests that SBUX’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 16 buys and 28 sells, and ownership decreased by a net of 612824 shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Starbucks Corporation (NASDAQ:SBUX)’s short interest is 22.54 million shares, or 1.59% of the float. This represents a decrease of -15% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SBUX is a Strong buy, which implies that SBUX is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Starbucks Corporation (NASDAQ:SBUX) is undervalued.