Charles Schwab (NYSE:SCHW) Insider Sells $299,122.65 in Stock

Key Points

• Paul Woolway, an insider at Charles Schwab, sold 3,205 shares for approximately $299,122.65, reducing his ownership by 8.44% to 34,778 shares.
• Charles Schwab's stock is currently trading at $92.75, with a market capitalization of $168.36 billion and a price-to-earnings ratio of 24.93.
• The company's Board of Directors has announced a $20 billion stock repurchase plan, indicating a belief that their stock is undervalued.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) insider Paul Woolway sold 3,205 shares of the stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $93.33, for a total transaction of $299,122.65. Following the transaction, the insider owned 34,778 shares of the company's stock, valued at $3,245,830.74. This represents a 8.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Charles Schwab Stock Performance

NYSE:SCHW traded up $0.50 on Thursday, reaching $92.75. 6,880,612 shares of the company's stock were exchanged, compared to its average volume of 10,648,256. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The firm has a market cap of $168.36 billion, a price-to-earnings ratio of 24.93, a P/E/G ratio of 0.91 and a beta of 0.97. The Charles Schwab Corporation has a 52 week low of $62.41 and a 52 week high of $99.59. The stock has a fifty day simple moving average of $95.50 and a 200-day simple moving average of $88.36.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data 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 company had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. Charles Schwab's revenue was up 24.8% compared to the same quarter last year. During the same period last year, the business earned $0.73 earnings per share. As a group, sell-side analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab announced that its Board of Directors has initiated a stock repurchase plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

Charles Schwab Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a dividend of $0.27 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 annualized dividend and a yield of 1.2%. Charles Schwab's payout ratio is currently 29.03%.

Hedge Funds Weigh In On Charles Schwab

Several hedge funds and other institutional investors have recently bought and sold shares of SCHW. Brighton Jones LLC lifted its stake in shares of Charles Schwab by 380.5% in the 4th quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock worth $1,794,000 after purchasing an additional 19,195 shares during the period. AdvisorNet Financial Inc lifted its stake in shares of Charles Schwab by 17.9% in the 1st quarter. AdvisorNet Financial Inc now owns 967 shares of the financial services provider's stock worth $76,000 after purchasing an additional 147 shares during the period. NBC Securities Inc. lifted its stake in shares of Charles Schwab by 109,827.3% in the 1st quarter. NBC Securities Inc. now owns 12,092 shares of the financial services provider's stock worth $946,000 after purchasing an additional 12,081 shares during the period. LVW Advisors LLC bought a new position in shares of Charles Schwab in the 1st quarter worth approximately $209,000. Finally, Merit Financial Group LLC lifted its stake in shares of Charles Schwab by 33.8% in the 1st quarter. Merit Financial Group LLC now owns 44,886 shares of the financial services provider's stock worth $3,514,000 after purchasing an additional 11,340 shares during the period. Institutional investors own 84.38% of the company's stock.

Analyst Upgrades and Downgrades

SCHW has been the topic of several research reports. Raymond James Financial reissued an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research note on Friday, July 18th. Bank of America lifted their target price on shares of Charles Schwab from $84.00 to $86.00 and gave the stock an "underperform" rating in a research note on Thursday. Keefe, Bruyette & Woods lifted their target price on shares of Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Truist Financial set a $112.00 target price on shares of Charles Schwab in a research note on Thursday. Finally, Barclays lifted their target price on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Sixteen research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $100.05.

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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