Have Charles Schwab Insiders Been Selling Stock?

Some The Charles Schwab Corporation (NYSE:SCHW) shareholders may be a little concerned to see that the Co-Chairman, Walter Bettinger, recently sold a substantial US$17m worth of stock at a price of US$89.00 per share. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Charles Schwab

Notably, that recent sale by Walter Bettinger is the biggest insider sale of Charles Schwab shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$87.58. While insider selling is a negative, to us, it is more negative if the shares are sold 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. On the other hand they divested 938.53k shares, for US$77m. All up, insiders sold more shares in Charles Schwab than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Charles Schwab

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Charles Schwab

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Charles Schwab insiders own 1.4% of the company, currently worth about US$2.2b based on the recent share price. 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 sold stock recently, but they haven't been buying. 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. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Charles Schwab you should be aware of.

Of course Charles Schwab may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.