Jacobs & Co. CA Reduces Stock Position in The Charles Schwab Corporation $SCHW

Key Points

• Jacobs & Co. CA reduced its stock position in The Charles Schwab Corporation by 2.6% in the second quarter, owning 162,899 shares after selling 4,267 shares, which represent 1.5% of their portfolio.
• Insiders, including Chairman Walter W. Bettinger, sold a total of 298,214 shares worth approximately $29 million in the last 90 days, indicating significant insider selling activity.
• Charles Schwab has announced a $20 billion share repurchase program, reflecting the company's belief that its stock is undervalued, and recently disclosed a quarterly dividend of $0.27 per share.

Jacobs & Co. CA lowered its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 2.6% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 162,899 shares of the financial services provider's stock after selling 4,267 shares during the period. Charles Schwab comprises about 1.5% of Jacobs & Co. CA's investment portfolio, making the stock its 18th biggest holding. Jacobs & Co. CA's holdings in Charles Schwab were worth $14,862,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. Central Pacific Bank Trust Division boosted its position in Charles Schwab by 15.4% during the 2nd quarter. Central Pacific Bank Trust Division now owns 81,917 shares of the financial services provider's stock valued at $7,474,000 after buying an additional 10,915 shares during the period. Kera Capital Partners Inc. purchased a new stake in shares of Charles Schwab in the 2nd quarter worth about $217,000. Cullen Investment Group LTD. lifted its position in shares of Charles Schwab by 4.1% in the 2nd quarter. Cullen Investment Group LTD. now owns 24,622 shares of the financial services provider's stock worth $2,247,000 after purchasing an additional 979 shares during the period. AG2R LA Mondiale Gestion D Actifs purchased a new stake in shares of Charles Schwab in the 1st quarter worth about $4,992,000. Finally, Swedbank AB lifted its position in shares of Charles Schwab by 4.2% in the 1st quarter. Swedbank AB now owns 650,882 shares of the financial services provider's stock worth $50,951,000 after purchasing an additional 26,461 shares during the period. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the sale, the chairman directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the sale, the insider owned 11,923 shares of the company's stock, valued at $1,154,265.63. This represents a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 298,214 shares of company stock worth $29,022,580 in the last 90 days. Insiders own 6.30% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SCHW. Truist Financial raised their target price on shares of Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research report on Friday, August 15th. William Blair cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. TD Securities raised their target price on shares of Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a research report on Tuesday, May 20th. Keefe, Bruyette & Woods raised their target price on shares of Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $99.00 price target on shares of Charles Schwab in a research note on Friday, July 18th. Sixteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and an average target price of $99.60.

Charles Schwab Stock Down 0.5%

NYSE:SCHW opened at $93.50 on Friday. The firm 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. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The Charles Schwab Corporation has a fifty-two week low of $61.81 and a fifty-two week high of $99.59. The firm has a 50-day simple moving average of $95.41 and a two-hundred day simple moving average of $86.76.

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

Charles Schwab announced that its Board of Directors has approved a share repurchase program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Charles Schwab Dividend Announcement

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

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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