Insider transactions can be a barometer of what’s to come vis-à-vis stock price movements and company health. In the last five years, Charles Schwab (SCHW) founder Chuck Schwab has sold off several large blocks of stock. In 2012, he's made 3 significant sales. He sold $55.5 million in April, 2012 preceding a 15% drop over the next 6-7 weeks, and in July and August of this year sold a further $30 million, bringing his April through August, 2012 sales to $85.5 million.
We’d say this is a clear warning sign of things to come and the outlook for the back half of 2012 for SCHW. He has a solid track record of getting rid of stock before significant sell offs and his latest transaction appears to be no different.