The Executive VP of The Charles Schwab Corporation (NYSE:SCHW), Peter Morgan, Just Sold 27% Of Their Holding

Anyone interested in The Charles Schwab Corporation (NYSE:SCHW) should probably be aware that the Executive VP, Peter Morgan, recently divested US$146k worth of shares in the company, at an average price of US$41.38 each. The eyebrow raising move amounted to a reduction of 27% in their holding.

View our latest analysis for Charles Schwab

The Last 12 Months Of Insider Transactions At Charles Schwab

In the last twelve months, the biggest single sale by an insider was when the Founder & Chairman, Charles Schwab, sold US$30m worth of shares at a price of US$49.77 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$41.13. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 10.84k shares worth US$390k. On the other hand they divested 1.27m shares, for US$58m. Over the last year we saw more insider selling of Charles Schwab shares, than buying. 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!

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Insider Ownership of Charles Schwab

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. It's great to see that Charles Schwab insiders own 7.2% of the company, worth about US$5.5b. 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?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. 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 2 warning signs for Charles Schwab that deserve your attention before buying any shares.

But note: Charles Schwab may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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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. 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.
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