The founder and co-chairman of Charles Schwab (SCHW), Charles R. Schwab, recently sold the company’s shares worth $25 million. According to the SEC filing, Schwab sold 305,506 shares on February 12 and February 13, at prices ranging between $80.53 and $82.48 per share. It is worth noting that some of these shares were obtained by exercising stock options at $30.17 per share.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Despite the latest Informative Sell transaction, the insider still indirectly holds about 98.5 million Charles Schwab shares, worth $7.91 billion.
Apart from Schwab, the company’s co-chairman, Walter W. Bettinger, divested 464,629 shares of SCHW on February 12. The shares were sold at an average price of $81.91 per share, for a total transaction value of $38.06 million.
Insiders Sentiment for SCHW Stock Is Currently Bearish
In addition to the two executives mentioned, some more corporate insiders at Charles Schwab have decreased their stake in the company. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in SCHW stock is currently Very Negative. Corporate insiders have sold shares worth $66.7 million over the last three months.
However, this doesn’t necessarily signal trouble for the company. Charles Schwab’s recent efforts to expand overnight trading services to all retail clients reflects its commitment to beat competition. Further, the company’s strong January performance, with core net new assets surging 75% year-over-year, points to its ability to attract and retain clients.
Investors could keep close track of these notable insider activities, as they reflect the perceptions of key insiders about the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Who Is the Best Analyst Covering SCHW Stock?
According to TipRanks, five-star analyst, Steven Chubak from Wolfe Research, has witnessed 77% success in his 22 ratings on Charles Schwab stock. Importantly, copying Chubak’s trades for a year would yield an average return of 20.89% per trade.
On February 10, Chubak reiterated a Buy rating on SCHW stock and raised his price target to $100 from $93. The new price target implies a 24.5% upside potential from the current level.
Is SCHW a Buy or Sell?
Turning to Wall Street, SCHW stock has a Moderate Buy consensus rating based on 14 Buys, four Holds, and one Sell assigned in the last three months. At $91.89, the average Charles Schwab price target implies a 14.38% upside potential.
