Central Pacific Bank Trust Division Increases Stake in The Charles Schwab Corporation $SCHW

Key Points

• Central Pacific Bank Trust Division increased its stake in The Charles Schwab Corporation by 15.4%, owning 81,917 shares valued at approximately $7.47 million, making it the 11th largest holding in their portfolio.
• Several institutional investors, including Vanguard Group Inc. and Price T Rowe Associates Inc., also boosted their stakes in Charles Schwab, reflecting strong institutional interest in the stock.
• Charles Schwab recently announced a $20 billion stock repurchase plan and paid a quarterly dividend of $0.27 per share, indicating confidence in its financial stability and stock valuation.

Central Pacific Bank Trust Division raised its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 15.4% during the second quarter, according to its most recent filing with the SEC. The institutional investor owned 81,917 shares of the financial services provider's stock after purchasing an additional 10,915 shares during the period. Charles Schwab accounts for approximately 1.0% of Central Pacific Bank Trust Division's portfolio, making the stock its 11th biggest holding. Central Pacific Bank Trust Division's holdings in Charles Schwab were worth $7,474,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in shares of Charles Schwab by 15.4% in 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 acquiring an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Charles Schwab by 12.3% in 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 acquiring an additional 8,954,248 shares during the last quarter. Northern Trust Corp increased its stake in shares of Charles Schwab by 10.8% in the 1st quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after acquiring an additional 1,700,384 shares during the last quarter. Alliancebernstein L.P. increased its stake in shares of Charles Schwab by 16.0% in the 1st quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock worth $1,339,822,000 after acquiring an additional 2,355,309 shares during the last quarter. Finally, Invesco Ltd. increased its stake in shares of Charles Schwab by 5.0% in the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after acquiring an additional 743,906 shares during the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Wall Street Analyst Weigh In

SCHW has been the subject of a number of recent research reports. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Morgan Stanley raised their target price on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and raised their target price for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. 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. Finally, Barclays raised their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Sixteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Stock Down 0.5%

Shares of NYSE:SCHW opened at $93.50 on Friday. The business has a 50-day moving average price of $95.41 and a 200 day moving average price of $86.76. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $169.72 billion, a price-to-earnings ratio of 25.13, a PEG ratio of 0.93 and a beta of 0.96. The Charles Schwab Corporation has a 12-month low of $61.81 and a 12-month high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. The company 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 was up 24.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.73 EPS. Sell-side analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Dividend Announcement

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

Charles Schwab declared that its board has authorized a stock repurchase plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 11.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other Charles Schwab news, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction dated Thursday, August 28th. The stock was 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 of the company's stock, valued at $1,154,265.63. The trade was a 34.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. The disclosure for this sale can be found here. Insiders sold a total of 298,214 shares of company stock worth $29,022,580 over the last 90 days. 6.30% of the stock is owned by insiders.

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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