Cwm LLC Reduces Stock Position in The Charles Schwab Corporation $SCHW

Key Points

• Cwm LLC reduced its stock position in The Charles Schwab Corporation by 63.4%, holding 103,054 shares worth $9.4 million after selling 178,491 shares in the second quarter.
• Insider activity included significant sales, with insider Nigel J. Murtagh selling 24,096 shares for over $2.35 million, representing a 29% decrease in his holdings.
• Recent analysts' reports reflect a mix of ratings for Schwab, with price targets ranging from $86 to $130, and a consensus rating of "Moderate Buy."

Cwm LLC decreased its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 63.4% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 103,054 shares of the financial services provider's stock after selling 178,491 shares during the quarter. Cwm LLC's holdings in Charles Schwab were worth $9,403,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in SCHW. Westside Investment Management Inc. grew its holdings in Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after buying an additional 150 shares during the period. RMG Wealth Management LLC purchased a new stake in Charles Schwab in the 2nd quarter valued at about $27,000. CBIZ Investment Advisory Services LLC grew its holdings in Charles Schwab by 97.9% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider's stock valued at $30,000 after buying an additional 191 shares during the period. Stone House Investment Management LLC purchased a new stake in Charles Schwab in the 1st quarter valued at about $31,000. Finally, Activest Wealth Management grew its holdings in Charles Schwab by 6,650.0% in the 1st quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock valued at $32,000 after buying an additional 399 shares during the period. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insider Activity

In related news, insider Nigel J. Murtagh sold 24,096 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Paul V. Woolway sold 3,290 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $96.06, for a total value of $316,037.40. Following the transaction, the insider directly owned 41,188 shares in the company, valued at $3,956,519.28. This trade represents a 7.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 267,128 shares of company stock worth $26,232,077 in the last ninety days. 6.30% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several analysts have commented on SCHW shares. Bank of America lifted their price target on Charles Schwab from $84.00 to $86.00 and gave the company an "underperform" rating in a report on Thursday, October 2nd. BMO Capital Markets initiated coverage on Charles Schwab in a research note on Friday, October 3rd. They issued an "outperform" rating and a $110.00 price objective on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Charles Schwab in a research note on Wednesday, October 8th. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. Finally, Morgan Stanley reduced their price objective on Charles Schwab to $130.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 1st. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $101.85.

Charles Schwab Stock Performance

Charles Schwab stock opened at $93.39 on Wednesday. The stock's 50 day moving average price is $94.83 and its 200 day moving average price is $89.33. The firm has a market capitalization of $169.53 billion, a PE ratio of 25.11, a price-to-earnings-growth ratio of 0.89 and a beta of 0.97. 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 Charles Schwab Corporation has a one year low of $65.88 and a one year high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion for the quarter, compared to analyst estimates 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 for the quarter was up 24.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.73 EPS. As a group, sell-side analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were given 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 29.03%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.