Delta Investment Management LLC Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Delta Investment Management LLC acquired 5,257 shares of The Charles Schwab Corporation, valued at approximately $412,000, during the first quarter.
• Charles Schwab's board authorized a $20 billion stock buyback program, indicating that they believe the shares are undervalued.
• The company declared a quarterly dividend of $0.27 per share, with a current payout ratio of 29.03% and an annualized yield of 1.1%.

Delta Investment Management LLC purchased a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 5,257 shares of the financial services provider's stock, valued at approximately $412,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in SCHW. Atwood & Palmer Inc. acquired a new stake in Charles Schwab during the first quarter valued at $25,000. Westside Investment Management Inc. grew its position in shares of Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 150 shares during the period. Stone House Investment Management LLC acquired a new stake in shares of Charles Schwab in the first quarter valued at about $31,000. WFA Asset Management Corp acquired a new stake in shares of Charles Schwab in the first quarter valued at about $33,000. Finally, Cornerstone Planning Group LLC grew its position in shares of 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. Institutional investors and hedge funds own 84.38% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Piper Sandler boosted their price objective on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Truist Financial boosted their price objective on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Barclays boosted their price objective on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Raymond James Financial reiterated an "outperform" rating and set a $99.00 price objective on shares of Charles Schwab in a research note on Friday, July 18th. Finally, Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Charles Schwab currently has an average rating of "Moderate Buy" and an average price target of $99.60.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total transaction of $911,711.29. Following the transaction, the insider directly owned 39,154 shares of the company's stock, valued at $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction dated Wednesday, August 27th. The stock was 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. Insiders sold 298,299 shares of company stock valued at $29,005,931 over the last ninety days. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Trading Down 1.2%

Shares of NYSE SCHW traded down $1.18 during trading on Friday, hitting $95.91. 8,829,399 shares of the company were exchanged, compared to its average volume of 7,885,997. The Charles Schwab Corporation has a 12-month low of $61.16 and a 12-month high of $99.59. 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 company has a fifty day moving average price of $94.58 and a 200-day moving average price of $85.83. The firm has a market capitalization of $174.10 billion, a PE ratio of 25.78, a P/E/G ratio of 0.94 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The company had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the previous year, the firm earned $0.73 earnings per share. Charles Schwab's quarterly revenue was up 24.8% compared to the same quarter last year. As a group, equities research 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 paid a dividend of $0.27 per share. The ex-dividend date of this dividend 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 announced that its board has initiated a share repurchase plan on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase up to 11.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

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.