Greenleaf Trust Cuts Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Greenleaf Trust reduced its holdings in The Charles Schwab Corporation by 7.7% during the second quarter, selling 4,414 shares, and now owns 53,243 shares valued at approximately $4.86 million.
• Charles Schwab recently declared a $20 billion share buyback plan, indicating management’s confidence in the company’s undervaluation, which allows for the repurchase of up to 11.6% of its stock.
• In the last quarter, Charles Schwab reported earnings per share of $1.14, exceeding estimates, and its revenue increased by 24.8% year-over-year to reach $5.85 billion.

Greenleaf Trust lowered its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 7.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 53,243 shares of the financial services provider's stock after selling 4,414 shares during the quarter. Greenleaf Trust's holdings in Charles Schwab were worth $4,858,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently modified their holdings of SCHW. Pine Haven Investment Counsel Inc boosted its holdings in Charles Schwab by 0.3% in the second quarter. Pine Haven Investment Counsel Inc now owns 41,793 shares of the financial services provider's stock worth $3,813,000 after purchasing an additional 110 shares during the last quarter. Traveka Wealth LLC boosted its stake in shares of Charles Schwab by 4.3% in the 2nd quarter. Traveka Wealth LLC now owns 2,841 shares of the financial services provider's stock worth $259,000 after buying an additional 117 shares during the last quarter. Bank of Stockton boosted its stake in shares of Charles Schwab by 1.2% in the 2nd quarter. Bank of Stockton now owns 10,593 shares of the financial services provider's stock worth $967,000 after buying an additional 123 shares during the last quarter. Sheaff Brock Investment Advisors LLC grew its holdings in shares of Charles Schwab by 1.6% in 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 during the period. Finally, HM Payson & Co. increased its position 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 valued at $1,509,000 after acquiring an additional 130 shares during the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the transaction, the chairman owned 590,734 shares in the company, valued at approximately $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul V. Woolway sold 3,290 shares of the firm's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $96.06, for a total transaction of $316,037.40. Following the transaction, the insider directly owned 41,188 shares of the company's stock, valued at $3,956,519.28. The trade was a 7.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 263,923 shares of company stock worth $25,932,955 over the last ninety days. 6.30% of the stock is owned by company insiders.

Charles Schwab Stock Up 1.3%

SCHW opened at $96.74 on Tuesday. The stock has a market cap of $175.60 billion, a price-to-earnings ratio of 26.01, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. 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 firm's fifty day moving average is $95.56 and its 200 day moving average is $88.28. The Charles Schwab Corporation has a fifty-two week low of $62.41 and a fifty-two week high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results 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. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same quarter in the prior year, the business posted $0.73 EPS. Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year. On average, sell-side analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab declared that its Board of Directors has authorized a share buyback plan on Thursday, July 24th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued 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 yield of 1.1%. Charles Schwab's payout ratio is currently 29.03%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SCHW. Barclays boosted their price target on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Keefe, Bruyette & Woods raised their price objective on shares of Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. Morgan Stanley boosted their target price on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Raymond James Financial reiterated an "outperform" rating and issued a $99.00 price target on shares of Charles Schwab in a research report on Friday, July 18th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Charles Schwab from $114.00 to $113.00 and set a "buy" rating for the company in a research report on Tuesday, September 16th. Sixteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $100.00.

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.

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