IMS Capital Management Acquires New Holdings in The Charles Schwab Corporation $SCHW

Key Points

• IMS Capital Management has acquired a new position in The Charles Schwab Corporation, purchasing 14,002 shares valued at approximately $1.278 million.
• Several institutional investors increased their holdings in Schwab during the 2nd quarter, with a combined ownership of 84.38% of the company's stock.
• Charles Schwab recently announced a $20 billion share buyback plan, indicating that the board believes the company's stock is undervalued.

IMS Capital Management bought a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 14,002 shares of the financial services provider's stock, valued at approximately $1,278,000.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Financial Management Professionals Inc. raised its stake in Charles Schwab by 14.2% during the 2nd quarter. Financial Management Professionals Inc. now owns 3,103 shares of the financial services provider's stock worth $283,000 after buying an additional 387 shares during the period. Ballentine Partners LLC grew its stake in Charles Schwab by 0.8% in the second quarter. Ballentine Partners LLC now owns 22,343 shares of the financial services provider's stock valued at $2,039,000 after acquiring an additional 188 shares during the period. Norden Group LLC increased its holdings in shares of Charles Schwab by 1.9% in the second quarter. Norden Group LLC now owns 24,634 shares of the financial services provider's stock worth $2,248,000 after acquiring an additional 451 shares in the last quarter. Accurate Wealth Management LLC raised its position in shares of Charles Schwab by 59.9% during the second quarter. Accurate Wealth Management LLC now owns 5,538 shares of the financial services provider's stock worth $515,000 after purchasing an additional 2,075 shares during the period. Finally, Fifth Third Bancorp raised its position in shares of Charles Schwab by 11.0% during the second quarter. Fifth Third Bancorp now owns 158,051 shares of the financial services provider's stock worth $14,421,000 after purchasing an additional 15,690 shares during the period. Institutional investors and hedge funds own 84.38% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on SCHW. Deutsche Bank Aktiengesellschaft decreased their price objective on Charles Schwab from $114.00 to $113.00 and set a "buy" rating for the company in a research report on Tuesday, September 16th. JMP Securities upped their price target on shares of Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a report on Monday, July 21st. Truist Financial raised their price objective on shares of Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Finally, Barclays increased their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Sixteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $100.00.

Insider Activity at Charles Schwab

In other news, insider Paul V. Woolway sold 3,205 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total value of $305,116.00. Following the transaction, the insider owned 37,983 shares of the company's stock, valued at approximately $3,615,981.60. This represents a 7.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman owned 590,734 shares in the company, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 267,213 shares of company stock valued at $26,232,180. Insiders own 6.30% of the company's stock.

Charles Schwab Stock Performance

Shares of NYSE SCHW opened at $93.89 on Wednesday. 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 company has a market capitalization of $170.43 billion, a P/E ratio of 25.24, a P/E/G ratio of 0.93 and a beta of 0.96. The Charles Schwab Corporation has a 12 month low of $62.41 and a 12 month high of $99.59. The stock has a 50 day moving average of $95.50 and a 200-day moving average of $87.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate 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 the consensus estimate of $5.64 billion. During the same quarter last year, the firm posted $0.73 EPS. The company's quarterly revenue was up 24.8% on a year-over-year basis. As a group, equities research analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Dividend Announcement

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

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

About Charles Schwab

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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