The fact that several The Charles Schwab Corporation (NYSE:SCHW) Insiders have been unloading a significant amount of shares over the past year, which may have caused some confusion among investors. Knowing whether insiders are buying is usually more helpful in evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a closer look if multiple insiders are selling shares over a period of time.

Although insider transactions are not the most important thing in long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.

Check out our latest analysis on Charles Schwab

The last 12 months of insider transactions at Charles Schwab

Over the last year, we found that the largest insider sale was by founder and co-chairman Charles Schwab, who sold $10 million worth of stock at a price of about $76.40 per share. We generally don’t like to see insider selling, but the lower the sale price, the more concerned we are. It is some comfort that this sale was made at a price well above the current share price of $62.80, so it may not tell us anything about how insiders feel about the current share price.

Over the last year, insiders have bought 35,830,000 shares valued at $2.3 million. But insiders have sold 788,740,000 shares valued at $57 million. Over the last year, we have seen more insider sales of Charles Schwab shares than purchases. Below is a visual representation of insider transactions (by companies and individuals) over the last 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!

I’ll like Charles Schwab better if I see some big insider buying. While we wait, check out this free List of undervalued stocks and small cap stocks with significant recent insider buying.

Insiders at Charles Schwab recently sold shares

Over the past three months, we have observed significantly more insider selling than insider buying at Charles Schwab. We note that insiders cashed in $15 million worth of stock. On the other hand, we note that insiders bought $2.3 million worth of stock. We do not view these transactions as a positive sign.

Can Charles Schwab boast a high level of insider ownership?

I like to look at how many shares insiders own in a company to get an idea of ​​how well they work with insiders. I consider it a good sign when insiders own a significant number of shares in the company. Charles Schwab insiders own 1.4% of the company, which is currently worth about $1.6 billion based on the current share price. I like to see this level of insider ownership because it increases the likelihood that management has shareholders’ interests in mind.

The story goes on

So what do Charles Schwab’s insider transactions mean?

The naked truth for Charles Schwab is that there have been more insider selling than insider buying over the past three months. Despite some insider buying, the long-term picture does not make us much more optimistic. It is good to see high insider ownership, but the insider selling makes us cautious. In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks facing Charles Schwab. In our analysis, we found that Charles Schwab 1 warning sign and it would be unwise to ignore it.

Naturally, If you look elsewhere, you may find a fantastic investment. So take a look at the free List of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

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