HB Wealth Management LLC Sells 10,105 Shares of The Charles Schwab Corporation $SCHW

Key Points

• HB Wealth Management LLC reduced its stake in The Charles Schwab Corporation by 19.1%, selling 10,105 shares and holding 42,841 shares worth approximately $3,909,000 at the end of the most recent quarter.
• The Charles Schwab Corporation recently reported earnings of $1.14 per share, exceeding estimates, with a revenue of $5.85 billion, up 24.8% compared to the previous year.
• The company announced a $20 billion share repurchase program, indicating management's belief that the stock is undervalued, while also declaring a quarterly dividend of $0.27 per share.

HB Wealth Management LLC decreased its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 19.1% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 42,841 shares of the financial services provider's stock after selling 10,105 shares during the period. HB Wealth Management LLC's holdings in Charles Schwab were worth $3,909,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Atwood & Palmer Inc. bought a new position in Charles Schwab in the 1st quarter valued at approximately $25,000. Westside Investment Management Inc. lifted 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 lifted 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 bought a new position in Charles Schwab in the 1st quarter valued at approximately $31,000. Finally, Activest Wealth Management lifted 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. Institutional investors own 84.38% of the company's stock.

Charles Schwab Trading Down 3.4%

SCHW opened at $92.22 on Thursday. The Charles Schwab Corporation has a twelve month low of $62.41 and a twelve month high of $99.59. 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 fifty day moving average of $95.50 and a 200-day moving average of $88.36. The stock has a market cap of $167.39 billion, a PE ratio of 24.79, a price-to-earnings-growth ratio of 0.94 and a beta of 0.97.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The company had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. During the same period in the prior year, the company posted $0.73 earnings per share. Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year. On average, sell-side analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were issued a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Charles Schwab announced that its board has approved a share repurchase program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on SCHW shares. Keefe, Bruyette & Woods raised their price target on shares of Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Truist Financial raised their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research note on Friday, July 18th. Barclays raised their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Finally, JMP Securities raised their price target on shares of 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 research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $99.95.

Insiders Place Their Bets

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the sale, the chairman directly owned 590,734 shares in the company, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the sale, the insider owned 11,923 shares of the company's stock, valued at $1,154,265.63. The trade was a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 263,923 shares of company stock valued at $25,932,955. 6.30% of the stock is currently owned by corporate insiders.

Charles Schwab 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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