McElhenny Sheffield Capital Management LLC Purchases New Holdings in The Charles Schwab Corporation $SCHW

Key Points

• McElhenny Sheffield Capital Management LLC purchased a new stake in The Charles Schwab Corporation, acquiring 8,418 shares valued at approximately $768,000 during the second quarter.
• The company has announced a $20 billion stock buyback plan, indicating the board believes its shares are undervalued, and also declared a quarterly dividend of $0.27 per share.
• Charles Schwab reported a quarterly earnings per share of $1.14, exceeding analyst expectations and marking a 24.8% increase in revenue compared to the same quarter last year.

McElhenny Sheffield Capital Management LLC purchased a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 8,418 shares of the financial services provider's stock, valued at approximately $768,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of SCHW. Pine Haven Investment Counsel Inc boosted its stake in shares of Charles Schwab by 0.3% during the 2nd quarter. Pine Haven Investment Counsel Inc now owns 41,793 shares of the financial services provider's stock worth $3,813,000 after acquiring an additional 110 shares in the last quarter. Traveka Wealth LLC boosted its stake in shares of Charles Schwab by 4.3% during the 2nd quarter. Traveka Wealth LLC now owns 2,841 shares of the financial services provider's stock worth $259,000 after acquiring an additional 117 shares in the last quarter. Bank of Stockton boosted its stake in shares of Charles Schwab by 1.2% during the 2nd quarter. Bank of Stockton now owns 10,593 shares of the financial services provider's stock worth $967,000 after acquiring an additional 123 shares in the last quarter. Sheaff Brock Investment Advisors LLC boosted its stake in shares of Charles Schwab by 1.6% during the 1st 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 in the last quarter. Finally, HM Payson & Co. boosted its stake in shares of 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 in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Buying and Selling at Charles Schwab

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction on Tuesday, July 29th. The stock was 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jonathan S. Beatty sold 6,144 shares of the firm'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 transaction, the insider owned 11,923 shares in the company, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 267,128 shares of company stock valued at $26,232,077 in the last quarter. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $93.82 on Thursday. 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 1 year low of $64.97 and a 1 year high of $99.59. The business has a fifty day simple moving average of $95.11 and a 200 day simple moving average of $88.89. The firm has a market cap of $170.30 billion, a price-to-earnings ratio of 25.22, a P/E/G ratio of 0.91 and a beta of 0.97.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $5.64 billion. During the same period last year, the company earned $0.73 earnings per share. Charles Schwab's quarterly revenue was up 24.8% compared to the same quarter last year. As a group, sell-side analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab declared that its board has authorized a stock buyback plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Charles Schwab Announces Dividend

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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Zacks Research lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Deutsche Bank Aktiengesellschaft reduced their target price on Charles Schwab from $114.00 to $113.00 and set a "buy" rating for the company in a report on Tuesday, September 16th. Piper Sandler increased their target price on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Finally, Keefe, Bruyette & Woods increased their target price on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a report on Monday, July 21st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and an average price target of $100.57.

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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