Some The Charles Schwab Corporation (NYSE:SCHW) shareholders may be a little concerned to see that the Chairman of the Board, Charles Schwab, recently sold a whopping US$10m worth of stock at a price of US$47.16 per share. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.2%.
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The Last 12 Months Of Insider Transactions At Charles Schwab
In fact, the recent sale by Chairman of the Board Charles Schwab was not their only sale of Charles Schwab shares this year. They previously made an even bigger sale of -US$29.6m worth of shares at a price of US$49.77 per share. That means that an insider was selling shares at around the current price of US$45.55. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
Happily, we note that in the last year insiders paid US$216k for 5.10k shares. On the other hand they divested 1912604 shares, for US$90m. In total, Charles Schwab insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Charles Schwab Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Charles Schwab insiders own about US$6.2b worth of shares (which is 11% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Charles Schwab Insider Transactions Indicate?
Insiders haven’t bought Charles Schwab stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. On the plus side, Charles Schwab makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Of course, the future is what matters most. So if you are interested in Charles Schwab, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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