Starbucks Corporation (SBUX): Hedge Funds and Insiders Are Bullish, What Should You Do?

Page 1 of 2

Starbucks Corporation (NASDAQ:SBUX)Is Starbucks Corporation (NASDAQ:SBUX) a buy here? Hedge funds are in a bullish mood. The number of long hedge fund bets rose by 3 recently.

In the financial world, there are plenty of gauges shareholders can use to analyze their holdings. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can beat the market by a healthy margin (see just how much).

Just as integral, optimistic insider trading sentiment is another way to parse down the world of equities. Obviously, there are lots of motivations for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this method if shareholders understand where to look (learn more here).

Keeping this in mind, we’re going to take a peek at the latest action encompassing Starbucks Corporation (NASDAQ:SBUX).

Hedge fund activity in Starbucks Corporation (NASDAQ:SBUX)

At Q1′s end, a total of 53 of the hedge funds we track were bullish in this stock, a change of 6% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Scout Capital Management, managed by James Crichton and Adam Weiss, holds the most valuable position in Starbucks Corporation (NASDAQ:SBUX). Scout Capital Management has a $185.1 million position in the stock, comprising 2.4% of its 13F portfolio. The second largest stake is held by SAC Capital Advisors, managed by Steven Cohen, which held a $181.7 million position; 0.9% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Donald Chiboucis’s Columbus Circle Investors, John Lykouretzos’s Hoplite Capital Management and D. E. Shaw’s D E Shaw.

As one would reasonably expect, specific money managers were breaking ground themselves. Highline Capital Management, managed by Jacob Doft, initiated the largest call position in Starbucks Corporation (NASDAQ:SBUX). Highline Capital Management had 54.1 million invested in the company at the end of the quarter. David Stemerman’s Conatus Capital Management also made a $49.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Mark Kingdon’s Kingdon Capital, Sanford J. Colen’s Apex Capital, and Jeffrey Jon Berney’s TriOaks Capital Management.

What do corporate executives and insiders think about Starbucks Corporation (NASDAQ:SBUX)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the last half-year time period, Starbucks Corporation (NASDAQ:SBUX) has seen 1 unique insiders purchasing, and 12 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Starbucks Corporation (NASDAQ:SBUX). These stocks are Panera Bread Co (NASDAQ:PNRA). All of these stocks are in the specialty eateries industry and their market caps resemble SBUX’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!