Avanza Fonder AB Has $10.96 Million Stake in The Charles Schwab Corporation $SCHW

Key Points

• Avanza Fonder AB has increased its stake in The Charles Schwab Corporation by 19.3%, owning 120,070 shares valued at approximately $10.96 million.
• The Charles Schwab Corporation reported a 24.8% increase in revenue for the recent quarter, with an EPS of $1.14, exceeding analyst estimates.
• The company announced a $20 billion stock buyback program, allowing it to reacquire up to 11.6% of its shares, signaling confidence in its stock valuation.

Avanza Fonder AB raised its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 19.3% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 120,070 shares of the financial services provider's stock after buying an additional 19,398 shares during the quarter. Avanza Fonder AB's holdings in Charles Schwab were worth $10,955,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in SCHW. Atwood & Palmer Inc. acquired a new position in Charles Schwab in the 1st quarter valued at approximately $25,000. Westside Investment Management Inc. increased its stake in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after purchasing an additional 150 shares during the last quarter. CBIZ Investment Advisory Services LLC increased its stake in shares of Charles Schwab by 97.9% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider's stock worth $30,000 after purchasing an additional 191 shares during the last quarter. Stone House Investment Management LLC bought a new position in shares of Charles Schwab during the 1st quarter valued at $31,000. Finally, Activest Wealth Management raised its holdings in shares of Charles Schwab by 6,650.0% during the 1st quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 399 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Transactions at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman directly owned 590,734 shares in the company, valued at $58,388,148.56. The trade was a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of the business's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the transaction, the insider owned 11,923 shares in the company, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 267,213 shares of company stock valued at $26,232,180. 6.30% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the stock. Bank of America raised their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. JMP Securities raised their price target on shares of Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a report on Monday, July 21st. Zacks Research lowered shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 17th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and boosted their target price for the stock from $65.00 to $82.00 in a research report on Monday, June 9th. Finally, Citigroup boosted their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $100.00.

Charles Schwab Price Performance

NYSE SCHW traded up $0.01 during trading on Monday, reaching $94.34. 11,068,868 shares of the company traded hands, compared to its average volume of 10,016,961. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The stock's 50 day moving average price is $95.42 and its two-hundred day moving average price is $87.41. The company has a market cap of $171.25 billion, a price-to-earnings ratio of 25.36, a P/E/G ratio of 0.93 and a beta of 0.96. The Charles Schwab Corporation has a 1-year low of $62.41 and a 1-year high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. The company had revenue of $5.85 billion for 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%.The company's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.73 earnings per share. As a group, analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab declared that its Board of Directors has initiated a share buyback program on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its shares are undervalued.

Charles Schwab Announces Dividend

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

Charles Schwab Company Profile

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.