Capital Investment Advisors LLC Raises Stock Position in The Charles Schwab Corporation $SCHW

Key Points

• Capital Investment Advisors LLC increased its stock position in The Charles Schwab Corporation by 73.2% during the second quarter, owning 13,846 shares valued at approximately $1.26 million.
• Several institutional investors have significantly increased their holdings in Charles Schwab, with Wellington Management growing its position by 595.7% and Vanguard Group by 15.4% in the first quarter.
• Charles Schwab announced a $20 billion share buyback program, a move typically indicative of the board's belief that the stock is undervalued.

Capital Investment Advisors LLC lifted its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 73.2% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 13,846 shares of the financial services provider's stock after buying an additional 5,850 shares during the period. Capital Investment Advisors LLC's holdings in Charles Schwab were worth $1,263,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of SCHW. Vanguard Group Inc. grew its position in Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after purchasing an additional 19,817,022 shares during the last quarter. Wellington Management Group LLP grew its position in Charles Schwab by 595.7% during the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after purchasing an additional 13,262,309 shares during the last quarter. Primecap Management Co. CA grew its position in Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after purchasing an additional 9,749,728 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in Charles Schwab by 12.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after purchasing an additional 8,954,248 shares during the last quarter. Finally, Nuveen LLC purchased a new stake in Charles Schwab during the 1st quarter worth approximately $440,699,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Performance

SCHW opened at $92.22 on Thursday. 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 fifty day moving average price of $95.50 and a 200 day moving average price of $88.36. The Charles Schwab Corporation has a 1 year low of $62.41 and a 1 year high of $99.59. The stock has a market cap of $167.39 billion, a P/E ratio of 24.79, a P/E/G ratio of 0.94 and a beta of 0.97.

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

Charles Schwab Announces Dividend

The company also recently announced 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 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, August 8th. Charles Schwab's payout ratio is currently 29.03%.

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

Analyst Upgrades and Downgrades

Several analysts have weighed in on SCHW shares. Morgan Stanley dropped their target price on shares of Charles Schwab to $130.00 and set an "overweight" rating on the stock in a research report on Wednesday. Wells Fargo & Company set a $102.00 target price on shares of Charles Schwab and gave the stock an "overweight" rating in a research report on Friday, July 18th. Zacks Research cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Bank of America lifted their price objective on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Finally, JMP Securities lifted their price objective on shares of Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research note on Monday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $99.95.

Insider Transactions at Charles Schwab

In related news, insider Jonathan S. Beatty sold 6,144 shares of the business's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the transaction, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. The trade was a 34.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the business's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 263,923 shares of company stock worth $25,932,955. Insiders own 6.30% of the company's stock.

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.

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