The Charles Schwab Corporation $SCHW Shares Purchased by Interval Partners LP

Key Points

• Interval Partners LP increased its holdings in The Charles Schwab Corporation by 152.6% to a total of 174,875 shares, valued at approximately $13.69 million.
• Several large investors, including Cary Street Partners and Graham Capital Management, have also recently adjusted their stakes in Charles Schwab, indicating a trend among institutional investors.
• The company announced a stock repurchase program authorizing $20 billion in buybacks, suggesting that leadership believes the stock is currently undervalued.

Interval Partners LP boosted its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 152.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 174,875 shares of the financial services provider's stock after buying an additional 105,649 shares during the quarter. Interval Partners LP's holdings in Charles Schwab were worth $13,689,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of SCHW. Vanguard Group Inc. increased its holdings in Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after buying an additional 19,817,022 shares during the period. Wellington Management Group LLP grew its holdings in Charles Schwab by 595.7% in the first quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after purchasing an additional 13,262,309 shares during the last quarter. Primecap Management Co. CA grew its holdings in Charles Schwab by 229.3% in the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after purchasing an additional 9,749,728 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Charles Schwab by 12.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after purchasing an additional 8,954,248 shares during the last quarter. Finally, Nuveen LLC purchased a new position in Charles Schwab in the first quarter worth $440,699,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have issued reports on SCHW shares. Barclays lifted their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Morgan Stanley lifted their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $65.00 to $82.00 in a report on Monday, June 9th. Finally, TD Securities lifted their price target on shares of Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a report on Tuesday, May 20th. Sixteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $99.60.

Insiders Place Their Bets

In other Charles Schwab news, insider Jonathan S. Beatty sold 6,144 shares of the company's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the transaction, the insider owned 11,923 shares in the company, valued at approximately $1,154,265.63. This represents a 34.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the transaction, the insider owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This trade represents a 29.00% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 298,214 shares of company stock valued at $29,022,580. Insiders own 6.30% of the company's stock.

Charles Schwab Stock Performance

NYSE SCHW traded down $5.55 on Friday, reaching $92.09. 18,234,685 shares of the company's stock traded hands, compared to its average volume of 8,208,947. The firm has a market cap of $167.15 billion, a price-to-earnings ratio of 24.75, a P/E/G ratio of 0.91 and a beta of 0.96. The stock has a 50 day moving average price of $95.20 and a 200-day moving average price of $86.38. The Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

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

Charles Schwab Announces Dividend

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

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

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.