Mondrian Investment Partners LTD Lowers Holdings in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Mondrian Investment Partners LTD has reduced its holdings in The Charles Schwab Corporation by 6.0%, owning approximately $146.26 million worth of SCHW stock by the end of the last quarter.
• Charles Schwab's second quarter performance showed a 24.8% year-over-year revenue increase to $5.85 billion, surpassing analysts' expectations.
• The company has initiated a stock buyback program authorizing repurchase of up to $20 billion in shares, indicating management's belief that the stock is undervalued.

Mondrian Investment Partners LTD reduced its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 6.0% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,868,430 shares of the financial services provider's stock after selling 119,501 shares during the quarter. Charles Schwab comprises about 2.5% of Mondrian Investment Partners LTD's portfolio, making the stock its 11th biggest position. Mondrian Investment Partners LTD owned 0.10% of Charles Schwab worth $146,261,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of SCHW. Vanguard Group Inc. increased its holdings in Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after purchasing an additional 19,817,022 shares during the period. Primecap Management Co. CA boosted its position in Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after acquiring an additional 9,749,728 shares in the last quarter. Kovitz Investment Group Partners LLC boosted its position in Charles Schwab by 354.5% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock valued at $814,545,000 after acquiring an additional 8,584,173 shares in the last quarter. Nuveen LLC bought a new stake in Charles Schwab during the 1st quarter valued at $440,699,000. Finally, Marshall Wace LLP boosted its position in Charles Schwab by 742.0% during the 4th quarter. Marshall Wace LLP now owns 4,181,202 shares of the financial services provider's stock valued at $309,451,000 after acquiring an additional 3,684,640 shares in the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Jonathan M. Craig sold 47,500 shares of Charles Schwab stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total transaction of $4,201,850.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Peter J. Morgan III sold 10,176 shares of Charles Schwab stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $87.39, for a total transaction of $889,280.64. The disclosure for this sale can be found here. Insiders sold 308,016 shares of company stock valued at $29,341,433 over the last ninety days. Corporate insiders own 6.30% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and increased their target price for the company from $65.00 to $82.00 in a research report on Monday, June 9th. JMP Securities upped their target price on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research report on Monday, July 21st. JPMorgan Chase & Co. upped their price target on shares of Charles Schwab from $92.00 to $95.00 and gave the company an "overweight" rating in a report on Monday, April 21st. Finally, TD Securities upped their price target on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a report on Tuesday, May 20th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $99.35.

Charles Schwab Price Performance

SCHW traded up $2.21 on Thursday, reaching $97.80. 11,310,032 shares of the company's stock were exchanged, compared to its average volume of 9,257,840. The stock has a market cap of $177.53 billion, a PE ratio of 26.29, a P/E/G ratio of 0.92 and a beta of 0.96. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The stock's fifty day moving average price is $92.93 and its 200-day moving average price is $84.79. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the previous year, the firm earned $0.73 earnings per share. Charles Schwab's quarterly revenue was up 24.8% compared to the same quarter last year. Sell-side analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab announced that its Board of Directors has authorized a share repurchase plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in 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 typically an indication that the company's board of directors believes its shares are undervalued.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be paid a dividend of $0.27 per share. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. Charles Schwab's payout ratio is 29.03%.

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.