Walter Bettinger, CEO at
Charles Schwab Corp (SCHW), recently picked up 36,640 shares. The buy increased his holdings by just over 12 percent, and came to a total price of just over $2.5 million.
This marks the first insider buy at the company going back to February, 2021. Company insiders, from C-suite executives and the company chairman, as well as a few directors, have been sellers of shares over the past two years as the stock has more than doubled.
Overall, company insiders own 6.7 percent of shares.
Despite a strong two-year rally, shares are now flat over the past year with the recent market drop. Yet earnings are up 39 percent, and revenue has risen 13 percent, plus the brokerage and advisory services firm has a 32 percent profit margin.
Action to take: Shares look reasonably priced for future growth at 18 times forward earnings. Plus, the recently-raised dividend works to a payout of over 1.1 percent right now, with more room for future growth.
Shares have had a steep decline recently, so could be poised for a major rebound in the weeks ahead. A trade like the September $75 calls, last going for about $4.00, could lead to a high double-digit return on such a rebound, and the option could be sold well before expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
