Elefante Mark B Takes $633,000 Position in The Charles Schwab Corporation $SCHW

Key Points

• Elefante Mark B has taken a new position in The Charles Schwab Corporation, acquiring 6,940 shares valued at approximately $633,000 during Q2, reflecting growing interest from institutional investors.
• Insider Nigel J. Murtagh sold 24,096 shares for over $2.3 million, indicating a 29% decrease in his holdings, while other corporate insiders also sold a total of 267,128 shares worth over $26 million recently.
• Charles Schwab announced a $20 billion share repurchase program to buy back up to 11.6% of its shares, reinforcing management's belief in the stock's undervaluation amid mixed analyst ratings and a consensus target price of $100.57.

Elefante Mark B bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 6,940 shares of the financial services provider's stock, valued at approximately $633,000.

Other hedge funds have also recently added to or reduced their stakes in the company. RMG Wealth Management LLC acquired a new position in Charles Schwab in the 2nd quarter valued at $27,000. Westside Investment Management Inc. raised its stake 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 purchasing an additional 150 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its stake 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 purchasing an additional 191 shares during the last quarter. Stone House Investment Management LLC acquired a new position in Charles Schwab in the 1st quarter valued at $31,000. Finally, Activest Wealth Management raised its stake 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 purchasing an additional 399 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction dated 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 completion of the sale, the insider directly owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This trade represents a 29.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the firm's stock in a transaction dated Wednesday, August 27th. The stock was 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. In the last ninety days, insiders sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Morgan Stanley reduced their price objective on Charles Schwab to $130.00 and set an "overweight" rating for the company in a research note on Wednesday, October 1st. 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. Bank of America raised their target price on Charles Schwab from $84.00 to $86.00 and gave the stock an "underperform" rating in a research note on Thursday, October 2nd. BMO Capital Markets assumed coverage on Charles Schwab in a research note on Friday, October 3rd. They issued an "outperform" rating and a $110.00 target price for the company. Finally, William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. One 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 issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.57.

Charles Schwab Stock Up 1.7%

Shares of SCHW opened at $93.50 on Tuesday. The stock has a fifty day simple moving average of $94.90 and a two-hundred day simple moving average of $89.30. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $169.72 billion, a PE ratio of 25.13, a price-to-earnings-growth ratio of 0.89 and a beta of 0.97. The Charles Schwab Corporation has a 52-week low of $65.88 and a 52-week high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The firm 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%.The company's quarterly revenue was up 24.8% on a year-over-year basis. During the same period last year, the company earned $0.73 EPS. As a group, equities analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab announced that its Board of Directors has initiated a share repurchase 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 shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently disclosed 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. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 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.

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