We've talked a bit about insider buying and selling in recent months. Either can be an indication of what insiders -- presumably, the people with the best information -- think about their stock's valuation.
At the end of August, Overstock
I would view both as signs of strong leadership, if not necessarily indications that the shares are dirt-cheap.
In contrast, insiders sold Mandalay Resort Group
But, in my view, the case with Schwab's Pottruck is nothing to fret over. In all, the 1.47 million shares in the plan account for a mere 7% of his total stake. Once the sales are complete, Pottruck will still own about 20 million shares.
Last week, Schwab reported solid fourth-quarter results. The company showed a pick up in business, and said that it was on the acquisition prowl. If you own Charles Schwab and are comfortable with the valuation, not much has changed with Pottruck's announcement.