Cumberland Partners Ltd Takes Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Cumberland Partners Ltd has purchased a new position in The Charles Schwab Corporation, acquiring 25,000 shares valued at approximately $1.96 million.
• Charles Schwab has announced a $20 billion share repurchase program, allowing the company to buy back up to 11.6% of its shares.
• The company reported a 24.8% year-over-year increase in quarterly revenue, reaching $5.85 billion, alongside an EPS of $1.14, surpassing analysts' expectations.

Cumberland Partners Ltd purchased a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 25,000 shares of the financial services provider's stock, valued at approximately $1,957,000.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Atwood & Palmer Inc. acquired a new stake in shares of Charles Schwab in the 1st quarter worth $25,000. Westside Investment Management Inc. raised its holdings in Charles Schwab by 75.0% during the first 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 in the last quarter. WFA Asset Management Corp purchased a new position in Charles Schwab during the first quarter worth about $33,000. Cornerstone Planning Group LLC lifted its position in Charles Schwab by 90.5% in the first quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after purchasing an additional 220 shares during the period. Finally, Beacon Capital Management LLC boosted its holdings in Charles Schwab by 53.1% in the 1st quarter. Beacon Capital Management LLC now owns 487 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 169 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, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the sale, the insider directly owned 58,999 shares of the company's stock, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. This represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 304,726 shares of company stock worth $29,025,396 in the last ninety days. Company insiders own 6.30% of the company's stock.

Charles Schwab Stock Down 2.2%

SCHW stock opened at $95.57 on Friday. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.53 and a quick ratio of 0.53. The company's 50 day simple moving average is $91.28 and its 200-day simple moving average is $83.66. The Charles Schwab Corporation has a 12 month low of $61.15 and a 12 month high of $99.59. The firm has a market capitalization of $173.65 billion, a PE ratio of 25.69, a P/E/G ratio of 0.94 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its 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. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. The firm had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter in the prior year, the firm earned $0.73 EPS. Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. Equities analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

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

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be paid a $0.27 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.08 annualized dividend and a yield of 1.1%. Charles Schwab's payout ratio is presently 29.03%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on SCHW shares. The Goldman Sachs Group raised Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 target price for the company in a research note on Friday, April 25th. Barclays increased their price objective on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Keefe, Bruyette & Woods boosted their target price on shares of Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research note on Friday, July 18th. Finally, TD Securities raised their price objective on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research note on Tuesday, May 20th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $99.35.

Charles Schwab 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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