Insider Trading Report: Charles Schwab Corp (SCHW)

Charles Ruffel, a director at Charles Schwab Corp (SCHW), recently picked up 3,636 shares. The buy increased his stake by 23 percent, and the total cost came to just over $196,000.

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  • This marks the first insider buy at the company since last July. Insiders have been overwhelming sellers of shares, dominated by Chairman Charles Schwab, who is still substantial shareholder at the company. Overall, insiders own over 7 percent of shares.

    The brokerage firm has performed about in line with the stock market over the past year. Thanks to higher trading volume, revenue is up over 60 percent at the firm, and earnings have jumped by one-third. Best of all, the company sports a fat 28 percent profit margin.

    Action to take: Investors may like shares here, although the dividend yield is a bit on the low side of 1.3 percent. For traders looking to play the current uptrend in shares, the June 2021 $60 calls, last trading for about $3.15, look like a reasonable trade here.

    Traders can likely nab high-double-digit gains or better if shares continue on their uptrend. The June strike date will also allow traders to grab a profit if shares jump higher on a positive news event, such as company earnings. The option stands a decent chance of moving in-the-money before expiration.

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