Hosking Partners LLP Decreases Stock Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Hosking Partners LLP reduced its holdings in The Charles Schwab Corporation by 0.9%, now owning 409,060 shares valued at approximately $32 million, marking it as the firm's 23rd largest position.
• Charles Schwab announced a $20 billion share buyback plan, which allows for the repurchase of up to 11.6% of its shares, indicating the board's confidence in the stock's undervaluation.
• The company reported $1.14 EPS for the last quarter, exceeding analyst expectations and reflecting a 24.8% revenue increase year-over-year.

Hosking Partners LLP reduced its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 0.9% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 409,060 shares of the financial services provider's stock after selling 3,614 shares during the quarter. Charles Schwab comprises about 1.4% of Hosking Partners LLP's portfolio, making the stock its 23rd biggest position. Hosking Partners LLP's holdings in Charles Schwab were worth $32,021,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Atwood & Palmer Inc. acquired a new position in Charles Schwab during the 1st quarter worth approximately $25,000. Westside Investment Management Inc. raised its stake in shares of Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after purchasing an additional 150 shares during the last quarter. WFA Asset Management Corp purchased a new stake in shares of Charles Schwab in the first quarter worth approximately $33,000. Cornerstone Planning Group LLC raised its stake in shares of Charles Schwab by 90.5% in the first quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock worth $36,000 after purchasing an additional 220 shares during the last quarter. Finally, Beacon Capital Management LLC raised its stake in shares of Charles Schwab by 53.1% in the first quarter. Beacon Capital Management LLC now owns 487 shares of the financial services provider's stock worth $38,000 after purchasing an additional 169 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 3,290 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $96.06, for a total transaction of $316,037.40. Following the sale, the insider owned 41,188 shares in the company, valued at $3,956,519.28. This trade represents a 7.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the sale, the insider owned 58,999 shares in the company, valued at $5,776,592.09. The trade was a 29.00% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 308,016 shares of company stock valued at $29,341,433. 6.30% of the stock is currently owned by company insiders.

Charles Schwab Stock Performance

Shares of Charles Schwab stock traded up $1.06 during trading hours on Friday, reaching $97.05. The company had a trading volume of 5,031,212 shares, compared to its average volume of 9,100,679. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.53 and a quick ratio of 0.53. The Charles Schwab Corporation has a one year low of $61.16 and a one year high of $99.59. The firm has a market cap of $176.34 billion, a PE ratio of 26.09, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96. The business has a fifty day simple moving average of $92.15 and a 200 day simple moving average of $84.40.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data 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 19.73% and a net margin of 33.68%. The company had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter last year, the business posted $0.73 earnings per share. The firm's revenue was up 24.8% compared to the same quarter last year. On average, analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab announced that its board has authorized a share buyback plan on Thursday, July 24th that permits the company to buyback $20.00 billion in outstanding 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 typically a sign that the company's leadership believes its stock is undervalued.

Charles Schwab Announces Dividend

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

Analyst Upgrades and Downgrades

Several brokerages have recently commented on SCHW. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Piper Sandler increased their price objective on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Morgan Stanley increased their price objective on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. Finally, Cowen reissued a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have issued a buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus 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.