In a surprising turn of events, $Starbucks(SBUX)$ announced that it is replacing CEO Laxman Narasimhan with $Chipotle Mexican Grill(CMG)$'s CEO, Brian Niccol. The move sent Starbucks' shares soaring by 10% in premarket trading, while Chipotle’s stock took a 10% hit. Narasimhan, who took over as CEO in March 2023, had a tumultuous tenure at Starbucks, marred by weak sales in both the U.S. and China—the company's two largest markets. The company's performance under Narasimhan's leadership led to a 21% decline in its stock, excluding the recent spike following the CEO change announcement. Despite the challenges, I believe the harsh move downward in Starbucks’ stock over the past few months was an overreaction
Should We Take CEO Buying/Selling Seriously?
Gelsinger paid $252,000 on Aug. 5 for 12,500 $Intel(INTC)$ shares, an average price of $20.16. You may think that $25k is no big money. But his persistence can't be ignored. Intel CEO continues to buy the stock in the past 4 years. Another notable CEO stock trade is $NVIDIA Corp(NVDA)$’s CEO sale in recent months. ---------------- Do you invest in good CEO or data? How do you view $Intel(INTC)$ CEO’s continous buying? Is it a bullish signal or not? Should we take CEO’s buying or selling seriously?
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