As bank stocks surged this week following the collapse of Silicon Valley Bank,
CEO Walt Bettinger and other insiders bought the dip, according to Securities and Exchange Commission filings.
Charles Schwab (Ticker: SCHW) stock is down about 28% over the past month. It fell 23% to $45 in early Monday trade, although the stock has since pared losses to $57.88.
Amid the stock market turmoil on Monday, Bettinger and founder Charles Schwab released a statement to reassure investors.
“Schwab’s longstanding reputation as a safe haven in a storm remains intact, fueled by record-breaking financial results, a conservative balance sheet, a strong liquidity position and a diversified base of over 34 million account holders investing with Schwab daily,” Bettinger said and Schwab wrote.
Bettinger confirmed his testimony Tuesday, paying $2.97 million to purchase 50,000 shares of Schwab at an average price of $59.31, according to an SEC filing. On the same day, Chief Financial Officer Peter Crawford’s trust paid $289,780 for 5,000 shares at an average price of $57.96; Director Todd Ricketts paid $567,862 for 10,000 shares at an average price of $56.79; and Director John Adams paid $296,550 for 5,000 shares at an average price of $59.31.
Director Stephen Ellis’ trust paid $378,928 for 6,757 shares on Tuesday at an average price of $56.08, and then on Wednesday bought an additional 34,387 shares for $2 million at an average price of $58.26 . On Thursday, Director Mark Goldfarb paid approximately $233,468 for 4,000 shares at an average price of $58.37.
The company declined to make the executives available for comment. Bettinger said Tuesday on CNBC that he was “waiting at the door and bought 50,000 shares for my personal account as soon as the market opened.”
“I personally bought shares,” he said. according to a transcript on Schwab’s website. “I’m not suggesting this to anyone, it’s just a personal choice for me, so I’m not promoting the stock.” But when I saw the stock price, given my insight into the company, it made sense for me to go ahead and make a substantial purchase.”
Write to Connor Smith at email@example.com
Source : www.barrons.com