Modern Wealth Management LLC Cuts Stake in The Charles Schwab Corporation $SCHW

Key Points

• Modern Wealth Management LLC reduced its stake in The Charles Schwab Corporation (NYSE:SCHW) by 33.5%, owning 7,258 shares valued at $568,000 after selling 3,654 shares in Q1.
• Charles Schwab reported $1.14 earnings per share for its latest quarter, exceeding forecasts, and announced a $20 billion stock buyback plan, indicating confidence in their share value.
• The company's stock price has witnessed a 0.5% decline recently, trading at approximately $93.50, with a 12-month high of $99.59.

Modern Wealth Management LLC reduced its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 33.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 7,258 shares of the financial services provider's stock after selling 3,654 shares during the quarter. Modern Wealth Management LLC's holdings in Charles Schwab were worth $568,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Sheaff Brock Investment Advisors LLC grew its holdings in shares of Charles Schwab by 1.6% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock valued at $625,000 after buying an additional 129 shares during the last quarter. HM Payson & Co. grew its holdings in shares of Charles Schwab by 0.7% during the first quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock valued at $1,509,000 after buying an additional 130 shares during the last quarter. Cornerstone Wealth Management LLC grew its holdings in shares of Charles Schwab by 2.1% during the first quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock valued at $513,000 after buying an additional 132 shares during the last quarter. Journey Strategic Wealth LLC grew its holdings in shares of Charles Schwab by 3.1% during the first quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock valued at $351,000 after buying an additional 135 shares during the last quarter. Finally, Meridian Wealth Management LLC grew its holdings in shares of Charles Schwab by 2.2% during the first quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock valued at $485,000 after buying an additional 136 shares during the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Down 0.5%

Shares of NYSE SCHW opened at $93.50 on Monday. The Charles Schwab Corporation has a 12-month low of $61.81 and a 12-month high of $99.59. The stock has a market cap of $169.72 billion, a PE ratio of 25.13, a P/E/G ratio of 0.92 and a beta of 0.96. 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 company has a 50-day moving average of $95.41 and a 200 day moving average of $86.87.

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, beating 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 company had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter in the prior year, the company earned $0.73 EPS. Charles Schwab's 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 EPS for the current fiscal year.

Charles Schwab announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Charles Schwab Announces Dividend

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

Insiders Place Their Bets

In related news, General Counsel Peter J. Morgan III sold 50,016 shares of the stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total transaction of $305,116.00. Following the transaction, the insider directly owned 37,983 shares in the company, valued at $3,615,981.60. The trade was a 7.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 298,214 shares of company stock worth $29,022,580. 6.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on SCHW shares. Raymond James Financial restated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. Truist Financial boosted their target price on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research report on Friday, August 15th. Morgan Stanley boosted their target price on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. JMP Securities boosted their target price on shares of Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research report on Monday, July 21st. Finally, Barclays boosted their target price on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Sixteen 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. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $99.60.

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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