Islay Capital Management LLC Purchases 7,357 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Islay Capital Management LLC significantly increased its stake in The Charles Schwab Corporation by 146.7%, acquiring an additional 7,357 shares, bringing its total holdings to 12,373 shares valued at $969,000.
• Charles Schwab recently announced a $20 billion share buyback program aimed at repurchasing up to 11.6% of its outstanding shares, indicative of company leadership's belief in the stock's undervaluation.
• In the latest quarter, Charles Schwab reported earnings per share of $1.14, exceeding the consensus estimate, and a revenue increase of 24.8% year-over-year to $5.85 billion.

Islay Capital Management LLC boosted its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 146.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 12,373 shares of the financial services provider's stock after acquiring an additional 7,357 shares during the period. Islay Capital Management LLC's holdings in Charles Schwab were worth $969,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in the stock. Sheaff Brock Investment Advisors LLC raised its position in Charles Schwab by 1.6% in the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after acquiring an additional 129 shares during the period. HM Payson & Co. increased its holdings in Charles Schwab by 0.7% during the 1st quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after acquiring an additional 130 shares during the period. Cornerstone Wealth Management LLC increased its holdings in Charles Schwab by 2.1% during the 1st quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock worth $513,000 after acquiring an additional 132 shares during the period. Journey Strategic Wealth LLC increased its holdings in Charles Schwab by 3.1% during the 1st quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock worth $351,000 after acquiring an additional 135 shares during the period. Finally, Meridian Wealth Management LLC increased its holdings in Charles Schwab by 2.2% during the 1st quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock worth $485,000 after acquiring an additional 136 shares during the period. Institutional investors own 84.38% of the company's stock.

Charles Schwab Trading Down 0.3%

NYSE SCHW traded down $0.32 during trading on Wednesday, hitting $96.92. The company had a trading volume of 5,071,879 shares, compared to its average volume of 8,008,145. 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 Charles Schwab Corporation has a one year low of $61.16 and a one year high of $99.59. The company has a market cap of $175.94 billion, a price-to-earnings ratio of 26.05, a price-to-earnings-growth ratio of 0.96 and a beta of 0.96. The company's fifty day moving average is $94.30 and its 200-day moving average is $85.63.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued 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 analyst estimates of $5.64 billion. During the same period in the prior year, the business earned $0.73 EPS. The company's revenue for the quarter was up 24.8% on a year-over-year basis. On average, sell-side analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

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

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Piper Sandler upped their price objective on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Truist Financial upped their price objective 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. TD Securities upped their price objective on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research note on Tuesday, May 20th. Finally, Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their price target for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Sixteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and a consensus target price of $99.60.

Insider Buying and Selling at Charles Schwab

In related news, insider Jonathan S. Beatty sold 2,850 shares of the stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $87.57, for a total value of $249,574.50. Following the completion of the transaction, the insider directly owned 15,219 shares in the company, valued at $1,332,727.83. This trade represents a 15.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the 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. The trade was a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 241,693 shares of company stock valued at $23,488,848 in the last quarter. 6.30% of the stock is owned by 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.