Dorsey & Whitney Trust CO LLC Cuts Stock Position in The Charles Schwab Corporation $SCHW

Key Points

• Dorsey & Whitney Trust CO LLC has reduced its stake in The Charles Schwab Corporation by 11.8%, selling 12,112 shares during the 1st quarter, now holding 90,201 shares valued at $7,061,000.
• Insider trading activity shows that Director Paula A. Sneed sold 8,647 shares valued at $761,454, representing a 7.57% decrease in their ownership.
• The company has announced a $20.00 billion stock buyback plan and a quarterly dividend of $0.27 per share, signaling confidence in its valuation.

Dorsey & Whitney Trust CO LLC cut its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 11.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 90,201 shares of the financial services provider's stock after selling 12,112 shares during the period. Dorsey & Whitney Trust CO LLC's holdings in Charles Schwab were worth $7,061,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in Charles Schwab by 380.5% in the 4th quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock valued at $1,794,000 after acquiring an additional 19,195 shares during the last quarter. State of Tennessee Department of Treasury increased its holdings in shares of Charles Schwab by 7.9% in the 4th quarter. State of Tennessee Department of Treasury now owns 560,942 shares of the financial services provider's stock valued at $41,515,000 after purchasing an additional 40,997 shares during the period. OneDigital Investment Advisors LLC increased its holdings in Charles Schwab by 16.2% in the fourth quarter. OneDigital Investment Advisors LLC now owns 47,591 shares of the financial services provider's stock worth $3,522,000 after buying an additional 6,636 shares during the last quarter. J. Safra Sarasin Holding AG acquired a new position in Charles Schwab in the fourth quarter worth approximately $220,000. Finally, Alta Advisers Ltd grew its holdings in Charles Schwab by 24.3% during the fourth quarter. Alta Advisers Ltd now owns 4,970 shares of the financial services provider's stock valued at $368,000 after purchasing an additional 970 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Insider Activity

In related news, insider Jonathan S. Beatty sold 2,850 shares of the company's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $87.57, for a total transaction of $249,574.50. Following the completion of the sale, the insider directly owned 15,219 shares in the company, valued at $1,332,727.83. This represents a 15.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Paula A. Sneed sold 8,647 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total value of $761,454.82. Following the completion of the transaction, the director owned 105,654 shares of the company's stock, valued at $9,303,891.24. This represents a 7.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 250,340 shares of company stock worth $24,250,303. 6.30% of the stock is owned by insiders.

Charles Schwab Stock Down 0.2%

NYSE SCHW traded down $0.1690 during trading on Friday, hitting $95.6510. The stock had a trading volume of 12,859,422 shares, compared to its average volume of 7,972,781. The company has a market capitalization of $173.63 billion, a PE ratio of 25.71, a P/E/G ratio of 0.94 and a beta of 0.96. The company's 50-day moving average price is $93.85 and its two-hundred day moving average price is $85.34. 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 12 month low of $61.16 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 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business's quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.73 EPS. As a group, sell-side analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

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

Charles Schwab Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Piper Sandler increased their price target on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Keefe, Bruyette & Woods raised their target price on 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 issued a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. Finally, JMP Securities raised their target price on 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 analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $99.60.

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.