There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on January 30, Starbucks Corp.'s Director, Myron E. Ullman III, invested $476,835.00 into 10,000 shares of SBUX, for a cost per share of $47.68. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Friday, bargain hunters could buy shares of Starbucks Corp. (NASDAQ:SBUX) and achieve a cost basis 2.4% cheaper than Ullman III, with shares changing hands as low as $46.53 per share. It should be noted that Ullman III has collected $0.34/share in dividends since the time of their purchase, so they are currently down 1.7% on their purchase from a total return basis. Starbucks Corp. shares are currently trading off about 11.2% on the day. The chart below shows the one year performance of SBUX shares, versus its 200 day moving average:
Looking at the chart above, SBUX's low point in its 52 week range is $33.72 per share, with $62.00 as the 52 week high point — that compares with a last trade of $46.61. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
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