Some The Charles Schwab Corporation (NYSE:SCHW) shareholders may be a little concerned to see that the Director, Carolyn Schwab-Pomerantz, recently sold a substantial US$1.5m worth of stock at a price of US$72.14 per share. However, that sale only accounted for 0.9% of their holding, so arguably it doesn't say much about their conviction.
Charles Schwab Insider Transactions Over The Last Year
The Founder & Co-Chairman, Charles Schwab, made the biggest insider sale in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$76.40 each. So what is clear is that an insider saw fit to sell at around the current price of US$71.36. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$2.3m for 35.00k shares. But they sold 813.86k shares for US$59m. Over the last year we saw more insider selling of Charles Schwab shares, than buying. You can see a visual depiction of insider transactions (by companies and 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 are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Charles Schwab
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Charles Schwab insiders own 1.4% of the company, worth about US$1.9b. 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 Does This Data Suggest About Charles Schwab Insiders?
An insider sold Charles Schwab shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Charles Schwab you should be aware of.
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 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.
