Form 4: Starbucks Executive Sara Kelly Exercises Options and Sells Shares Under 10b5-1 Plan

Starbucks EVP, Chief Partner Officer Sara Kelly exercised stock options and sold shares of company stock, all under a pre-arranged 10b5-1 trading plan.

Summary

• Sara Kelly, an Executive Vice President and Chief Partner Officer at Starbucks, executed several transactions involving company stock on November 29, 2024.
• She exercised options to purchase 4,859 shares at $60.68 per share and 6,743 shares at $56.10 per share.
• Concurrently, she sold 19,102 shares at $101.37 per share.
• These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on August 28, 2024.
• Following these transactions, Ms. Kelly directly owns 46,114.7755 shares of Starbucks stock, which includes 150.704 shares representing dividend equivalents received on unvested time-based restricted stock units.

Sentiment

Score: 5

Explanation: The document reflects routine executive transactions under a pre-arranged plan, which is neither positive nor negative for the company's outlook.

Risks

• Executive stock sales can sometimes be perceived negatively by the market, although these were pre-planned.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies, and the use of 10b5-1 plans is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• The use of 10b5-1 trading plans is a common practice among executives at publicly traded companies, including Starbucks' competitors such as McDonald's (MCD) and Dunkin' Brands (DNKN).
• These plans allow executives to sell shares at predetermined times and prices, mitigating the risk of insider trading allegations.
• The reported transactions are within the typical range of executive stock activity observed in similar companies.

Stakeholder Impact

• The transactions are unlikely to have a significant impact on stakeholders, as they are part of a pre-planned trading strategy.

Key Dates

Keywords

Starbucks, SBUX, Sara Kelly, stock options, share sale, 10b5-1 plan, executive transactions, insider trading