Charles Schwab (NYSE:SCHW) Insider Paul Woolway Sells 3,205 Shares

Key Points

• Insider Paul Woolway sold 3,205 shares of Charles Schwab stock at an average price of $95.20, decreasing his holdings by 7.78% to 37,983 shares.
• The company recently declared a quarterly dividend of $0.27 per share and announced a $20 billion stock buyback program aimed at repurchasing up to 11.6% of its shares.
• Charles Schwab's latest earnings report showed an EPS of $1.14, exceeding estimates and demonstrating a revenue increase of 24.8% year-over-year.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) insider Paul Woolway sold 3,205 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $95.20, for a total value of $305,116.00. Following the completion of the transaction, the insider directly owned 37,983 shares of the company's stock, valued at approximately $3,615,981.60. This trade represents a 7.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Charles Schwab Price Performance

SCHW stock traded down $0.06 during midday trading on Wednesday, reaching $96.06. The company had a trading volume of 7,261,150 shares, compared to its average volume of 7,386,242. The company has a market capitalization of $174.36 billion, a price-to-earnings ratio of 25.82, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The stock has a 50 day moving average price of $94.99 and a 200-day moving average price of $86.13. The Charles Schwab Corporation has a 1-year low of $61.16 and a 1-year high of $99.59. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. The business had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.73 earnings per share. Equities research analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's payout ratio is 29.03%.

Charles Schwab declared that its Board of Directors has approved a stock buyback program on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 11.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Charles Schwab

A number of institutional investors and hedge funds have recently modified their holdings of the business. Q3 Asset Management bought a new position in shares of Charles Schwab during the 2nd quarter worth approximately $3,111,000. Prospera Capital Management LLC acquired a new position in shares of Charles Schwab during the second quarter valued at about $216,000. Orion Porfolio Solutions LLC raised its holdings in shares of Charles Schwab by 16.6% during the second quarter. Orion Porfolio Solutions LLC now owns 176,485 shares of the financial services provider's stock valued at $16,103,000 after purchasing an additional 25,181 shares during the period. Thrivent Financial for Lutherans raised its holdings in shares of Charles Schwab by 14.5% during the second quarter. Thrivent Financial for Lutherans now owns 2,378,672 shares of the financial services provider's stock valued at $216,959,000 after purchasing an additional 300,873 shares during the period. Finally, MASTERINVEST Kapitalanlage GmbH acquired a new position in shares of Charles Schwab during the second quarter valued at about $3,876,000. 84.38% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Cowen reissued a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Piper Sandler boosted their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Finally, Citigroup boosted their target price on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Charles Schwab currently has an average rating of "Moderate Buy" and an average price target of $99.60.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.

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