Evergreen Capital Management LLC Sells 37,981 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Evergreen Capital Management LLC has reduced its stake in The Charles Schwab Corporation by 25.2%, selling 37,981 shares and now holding a total of 112,538 shares worth approximately $8.8 million.
• Charles Schwab reported a 24.8% year-over-year increase in quarterly revenue, posting $5.85 billion with earnings per share of $1.14, surpassing estimates.
• The company's Board approved a $20 billion share repurchase plan, indicating confidence in the stock's value, and also declared a quarterly dividend of $0.27 per share.

Evergreen Capital Management LLC lowered its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 25.2% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 112,538 shares of the financial services provider's stock after selling 37,981 shares during the quarter. Evergreen Capital Management LLC's holdings in Charles Schwab were worth $8,809,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the stock. Sheaff Brock Investment Advisors LLC lifted its holdings in Charles Schwab by 1.6% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after acquiring an additional 129 shares in the last quarter. HM Payson & Co. lifted its holdings in Charles Schwab by 0.7% during the first quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after acquiring an additional 130 shares in the last quarter. Cornerstone Wealth Management LLC lifted its holdings in Charles Schwab by 2.1% during the first quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock worth $513,000 after acquiring an additional 132 shares in the last quarter. Journey Strategic Wealth LLC lifted its holdings in Charles Schwab by 3.1% during the first quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock worth $351,000 after acquiring an additional 135 shares in the last quarter. Finally, Meridian Wealth Management LLC lifted its holdings in Charles Schwab by 2.2% during the first quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock worth $485,000 after acquiring an additional 136 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Price Performance

NYSE:SCHW opened at $97.12 on Friday. 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 stock's 50-day simple moving average is $94.45 and its 200 day simple moving average is $85.74. The company has a market cap of $176.30 billion, a P/E ratio of 26.11, a P/E/G ratio of 0.95 and a beta of 0.96. The Charles Schwab Corporation has a 52-week low of $61.16 and a 52-week 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. The business had revenue of $5.85 billion for 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%.Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.73 earnings per share. As a group, sell-side analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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

Charles Schwab Dividend Announcement

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

Insider Activity at Charles Schwab

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the transaction, the chairman directly owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. The trade was a 22.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares in the company, valued at $5,776,592.09. The trade was a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 238,843 shares of company stock valued at $23,239,273. 6.30% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on SCHW shares. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Raymond James Financial restated an "outperform" rating and issued a $99.00 price target on shares of Charles Schwab in a report on Friday, July 18th. Cowen restated a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Truist Financial boosted their price target on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a report on Friday, August 15th. Finally, Keefe, Bruyette & Woods boosted their price target on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a report on Monday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Charles Schwab presently 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.

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