Have Charles Schwab Insiders Been Selling Stock?

We wouldn't blame The Charles Schwab Corporation (NYSE:SCHW) shareholders if they were a little worried about the fact that Charles Schwab, the Founder & Co-Chairman recently netted about US$3.0m selling shares at an average price of US$79.55. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.04%.

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The Last 12 Months Of Insider Transactions At Charles Schwab

In fact, the recent sale by Founder & Co-Chairman Charles Schwab was not their only sale of Charles Schwab shares this year. Earlier in the year, they fetched US$81.96 per share in a -US$11m sale. So we know that an insider sold shares at around the present share price of US$81.40. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid US$2.3m for 35.00k shares. But they sold 885.14k shares for US$69m. Over the last year we saw more insider selling of Charles Schwab shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Charles Schwab

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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$5.1b worth of shares (which is 3.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. But it is good to see that Charles Schwab is growing earnings. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charles Schwab. At Simply Wall St, we found 1 warning sign for Charles Schwab that deserve your attention before buying any shares.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.