Those following along with The Charles Schwab Corporation (NYSE:SCHW) will no doubt be intrigued by the recent purchase of shares by Richard Wurster, CEO, President & Director of the company, who spent a stonking US$1.8m on stock at an average price of US$84.23. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 11%.

Charles Schwab Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Charles Schwab, sold US$26m worth of shares at a price of US$97.04 per share. So we know that an insider sold shares at around the present share price of US$88.74. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

All up, insiders sold more shares in Charles Schwab than they bought, over the last year. 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.

Does Charles Schwab Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 about US$1.7b worth of shares (which is 1.1% of the company). 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?

The insider sales have outweighed the insider buying, at Charles Schwab, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Charles Schwab is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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.

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.