The Charles Schwab Corporation (NYSE:SCHW) Stock Position Cut by Goodman Financial Corp

Key Points

• Goodman Financial Corp has reduced its stake in The Charles Schwab Corporation by 1.2%, now holding 205,446 shares valued at approximately $16.08 million.
• Charles Schwab recently declared a $0.27 quarterly dividend, representing a 1.10% yield and a payout ratio of 29.03%.
• The company has launched a $20 billion stock repurchase program to buy back up to 11.6% of its outstanding shares, indicating potential undervaluation.

Goodman Financial Corp trimmed its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 1.2% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 205,446 shares of the financial services provider's stock after selling 2,600 shares during the quarter. Charles Schwab makes up about 3.5% of Goodman Financial Corp's portfolio, making the stock its 5th biggest position. Goodman Financial Corp's holdings in Charles Schwab were worth $16,082,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Atwood & Palmer Inc. purchased a new position in Charles Schwab during the first quarter valued at approximately $25,000. Westside Investment Management Inc. increased its holdings in Charles Schwab by 75.0% during the first 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. WFA Asset Management Corp purchased a new position in Charles Schwab during the first quarter valued at approximately $33,000. Cornerstone Planning Group LLC increased its holdings in Charles Schwab by 90.5% during the first quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after buying an additional 220 shares during the period. Finally, Beacon Capital Management LLC increased its holdings in Charles Schwab by 53.1% during the first quarter. Beacon Capital Management LLC now owns 487 shares of the financial services provider's stock valued at $38,000 after buying an additional 169 shares during the period. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Charles Schwab

In related news, General Counsel Peter J. Morgan III sold 10,176 shares of the company's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $87.39, for a total transaction of $889,280.64. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Jonathan M. Craig sold 47,500 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total transaction of $4,201,850.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 304,726 shares of company stock valued at $29,025,396. 6.30% of the stock is owned by corporate insiders.

Charles Schwab Stock Performance

Shares of SCHW stock traded down $2.16 during trading hours on Friday, reaching $95.57. 9,790,479 shares of the company's stock were exchanged, compared to its average volume of 8,649,078. The company has a market cap of $173.65 billion, a P/E ratio of 25.69, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The company's 50 day moving average is $91.28 and its two-hundred day moving average is $83.66. The Charles Schwab Corporation has a 1 year low of $61.15 and a 1 year high of $99.59. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.53 and a quick ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced 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 business 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 19.73% 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 quarter in the previous year, the company earned $0.73 EPS. Equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab declared that its board has approved a stock 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 buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Charles Schwab Dividend Announcement

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

Analyst Ratings Changes

A number of research firms recently commented on SCHW. Truist Financial increased their target price on shares of Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Barclays increased their target price on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their target price for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Wells Fargo & Company set a $102.00 target price on shares of Charles Schwab and gave the company an "overweight" rating in a research report on Friday, July 18th. Finally, Bank of America increased their target price on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research report on Monday, July 21st. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and an average price target of $99.35.

Charles Schwab Company 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.