Kidder Stephen W Invests $1.01 Million in The Charles Schwab Corporation $SCHW

Key Points

• Kidder Stephen W acquired a new stake in The Charles Schwab Corporation worth approximately $1.01 million during the second quarter, purchasing 11,025 shares.
• Charles Schwab's board has authorized a $20 billion stock repurchase program, suggesting that they believe their shares are currently undervalued.
• The company recently reported a 24.8% increase in quarterly revenue year-over-year, with earnings per share of $1.14, surpassing analysts' expectations.

Kidder Stephen W bought a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 11,025 shares of the financial services provider's stock, valued at approximately $1,006,000.

Other large investors also recently modified their holdings of the company. NBT Bank N A NY lifted its position in shares of Charles Schwab by 16.7% during the 2nd quarter. NBT Bank N A NY now owns 14,435 shares of the financial services provider's stock worth $1,317,000 after buying an additional 2,070 shares during the period. Somerville Kurt F bought a new stake in Charles Schwab in the second quarter valued at $2,223,000. Sax Wealth Advisors LLC raised its stake in Charles Schwab by 2.5% during the second quarter. Sax Wealth Advisors LLC now owns 8,794 shares of the financial services provider's stock worth $802,000 after acquiring an additional 214 shares in the last quarter. Venturi Wealth Management LLC bought a new position in shares of Charles Schwab during the second quarter valued at $245,000. Finally, Canopy Partners LLC lifted its holdings in shares of Charles Schwab by 1.7% during the second quarter. Canopy Partners LLC now owns 17,292 shares of the financial services provider's stock valued at $1,578,000 after acquiring an additional 296 shares during the period. 84.38% of the stock is currently owned by institutional investors.

Insider Activity

In other news, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares in the company, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the company's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 267,128 shares of company stock worth $26,232,077. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Stock Down 0.1%

NYSE SCHW opened at $93.94 on Wednesday. The stock has a market capitalization of $170.53 billion, a P/E ratio of 25.25, a price-to-earnings-growth ratio of 0.91 and a beta of 0.97. The Charles Schwab Corporation has a 52 week low of $64.26 and a 52 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. The stock has a fifty day moving average of $95.21 and a 200-day moving average of $88.86.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted 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. The business had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm's quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.73 earnings per share. On average, equities research analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab declared that its board has authorized a stock repurchase program 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 shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a $0.27 dividend. The ex-dividend date of this dividend was 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 research firms have recently weighed in on SCHW. Barclays upped their target price 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. BMO Capital Markets began coverage on shares of Charles Schwab in a research note on Friday, October 3rd. They set an "outperform" rating and a $110.00 price objective on the stock. Morgan Stanley dropped their price objective on shares of Charles Schwab to $130.00 and set an "overweight" rating for the company in a report on Wednesday, October 1st. Deutsche Bank Aktiengesellschaft reduced their target price on Charles Schwab from $114.00 to $113.00 and set a "buy" rating on the stock in a report on Tuesday, September 16th. Finally, Raymond James Financial restated an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research report on Friday, July 18th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus target price of $100.52.

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.

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