It hasn’t been a good week for the financial sector and Charles Schwab (NYSE:SCHW) stock is no exception.
Since the collapse of SVB Financial’s (NASDAQ:SIVB) principal subsidiary Silicon Valley Bank last week, bank stocks have been under significant scrutiny as investors ponder what this catastrophic market event means. However, Schwab CEO Walt Bettinger recently indicated that he believes his company won’t be down for long by purchasing 50,000 shares of SCHW stock.
What’s Happening with SCHW Stock
As of this writing, SCHW stock is up 12% for the day and shows no signs of slowing down. While this is likely due to general market momentum finally shifting in favor of the financial sector, Bettinger’s purchase is still significant. He recently told CNBC that the company is “seeing asset inflows to the firm in significant numbers.”
Bettinger added that his large-scale purchase represents the confidence he has in the company. According to CNBC, the SCHW stock shares he acquired were worth roughly $3 million as markets opened today. However, as the stock has been in the green all day, they are worth even more now.
This morning also brought reports that billionaire investor Ron Baron has increased his SCHW stock holdings, though he has not disclosed by how much. And as InvestorPlace contributor Dana Blankenhorn reported, institutional investment in the company remains strong, even as the fate of the banking world remains uncertain.
Clearly investors are seeking SCHW stock’s recent plunge as an opportunity to buy the dip before it goes back up. While some banks may not survive the current market turmoil, that isn’t likely to be the case for Schwab.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.