Hodges Capital Management Inc. Sells 9,106 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Hodges Capital Management Inc. reduced its stake in The Charles Schwab Corporation by 36%, selling 9,106 shares and now holds 16,181 shares worth approximately $1.27 million.
• The company announced a stock buyback plan of $20 billion, allowing it to repurchase up to 11.6% of its shares, indicating management's belief that shares are undervalued.
• Charles Schwab reported a 24.8% increase in revenue year-over-year for the last quarter, achieving $5.85 billion compared to the consensus estimate of $5.64 billion.

Hodges Capital Management Inc. trimmed its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 36.0% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 16,181 shares of the financial services provider's stock after selling 9,106 shares during the period. Hodges Capital Management Inc.'s holdings in Charles Schwab were worth $1,267,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Atwood & Palmer Inc. bought a new position in Charles Schwab in the 1st quarter worth about $25,000. Westside Investment Management Inc. grew 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 worth $27,000 after acquiring an additional 150 shares in the last quarter. Stone House Investment Management LLC bought a new position in Charles Schwab in the 1st quarter worth about $31,000. Activest Wealth Management grew 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 worth $32,000 after acquiring an additional 399 shares in the last quarter. Finally, WFA Asset Management Corp bought a new position in Charles Schwab in the 1st quarter worth about $33,000. 84.38% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction dated 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 sale, the chairman directly owned 590,734 shares in the company, valued at $58,388,148.56. This trade represents a 22.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction dated Wednesday, August 27th. The shares were 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. Insiders have sold 298,214 shares of company stock valued at $29,022,580 in the last ninety days. Company insiders own 6.30% of the company's stock.

Analyst Upgrades and Downgrades

SCHW has been the topic of a number of research analyst reports. Citigroup upped their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. JMP Securities upped their target price on shares of Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research note on Monday, July 21st. Bank of America upped their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Barclays upped their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Finally, Piper Sandler upped their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 15th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Trading Down 0.5%

NYSE SCHW opened at $93.50 on Friday. The Charles Schwab Corporation has a 12-month low of $61.81 and a 12-month high of $99.59. The company has a fifty day simple moving average of $95.41 and a two-hundred day simple moving average of $86.76. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The stock has a market cap of $169.72 billion, a P/E ratio of 25.13, a P/E/G ratio of 0.93 and a beta of 0.96.

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

Charles Schwab announced that its Board of Directors has initiated a stock repurchase plan on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend 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 29.03%.

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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