Insiders at Charles Schwab Sell Shares

With shares of Charles Schwab (SCHW) gaining in recent weeks, insiders at the discount brokerage are selling shares.

According to filings with the Securities and Exchange Commission last week, Charles Schwab, founder of the San Francisco company, sold 5,065 shares at a price of $44.778 a share for a total of $226,810. After the stock sale, Schwab owns 92,301,913 shares. Meanwhile, Marie Chandoha, president, and CEO of Charles Schwab Investment Management, unloaded 7,000 shares at a price of $45.59 a share for a total of $319130. After the stock sale, the executive owns zero shares of Charles Schwab, according to the filing.

The move on the part of the two insiders to sell some shares comes as the stock has been gaining since the middle of October when it was trading around $43 a share. It is now up more than 4k% and was recently trading up 0.07% or $0.03 to $44.88.  For the year, Charles Schwab’s shares are up close to 10%. Although the stock is trading closer to its 52-week high of $46.21 than its low of $30.66, analysts think it can go higher. Shares are more than 9% lower than the average Wall Street price target, which stands at $48.94, according to the Wall Street Journal. The highest price target is at $54 a share while the lowest stands at $44.

Earlier in the month, Charles Schwab weighed in with third-quarter results that had some positive and negative surprises. For the three months ended in September earnings per share of $0.42 beat Wall Street expectations although revenue of $2.165 billion was short of the $2.9 billion in sales Wall Street was looking for. Net interest revenue increased 28% to $1.08 billion while revenue from asset management fees jumped 8% to $861 million. During the quarter Schwab was able to open 216,000 new retail brokerage accounts, which is up 29% from last year’s third quarter. Total client assets increased 17% to $3.18 trillion and core net new assets jumped 72% to $51.6 billion.


On the negative side, it reported trading revenue declined 21% to $151 million, which has been worrying some analysts and investors. It marks the third quarter in a row in which trading revenue dipped on a year-over-year basis. For the second quarter, it fell 22% to $157 million, due in large part to the full effect of reductions in commissions that were instituted in February. Meanwhile, in the first quarter, trading revenue was down 17% to $192 million compared to the first quarter of 2016.