Navellier & Associates Inc. Cuts Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Navellier & Associates Inc. reduced its stake in The Charles Schwab Corporation by 30.3%, now holding 7,700 shares valued at approximately $642,000.
• Insiders have sold a significant amount of shares, totaling 116,313 shares worth over $10 million in the last three months, indicating possible concerns about the stock's future performance.
• Charles Schwab's Board of Directors approved a stock buyback program for up to $20.00 billion, demonstrating confidence in the company’s valuation amidst ongoing market fluctuations.

Navellier & Associates Inc. lessened its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 30.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,700 shares of the financial services provider's stock after selling 3,355 shares during the quarter. Navellier & Associates Inc.'s holdings in Charles Schwab were worth $642,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in SCHW. Atwood & Palmer Inc. purchased a new position in Charles Schwab during the 1st quarter valued at approximately $25,000. Westside Investment Management Inc. lifted its stake in shares of Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 150 shares during the last quarter. WFA Asset Management Corp bought a new stake in shares of Charles Schwab in the 1st quarter valued at approximately $33,000. Cornerstone Planning Group LLC lifted its stake in shares of Charles Schwab by 90.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after purchasing an additional 220 shares during the last quarter. Finally, Murphy & Mullick Capital Management Corp bought a new stake in shares of Charles Schwab in the 4th quarter valued at approximately $38,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insiders Place Their Bets

In other news, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total value of $911,711.29. Following the transaction, the insider directly owned 39,154 shares in the company, valued at approximately $3,524,251.54. This trade represents a 20.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Jonathan M. Craig sold 47,500 shares of Charles Schwab stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total value of $4,201,850.00. The disclosure for this sale can be found here. In the last three months, insiders sold 116,313 shares of company stock worth $10,264,091. Insiders own 6.30% of the company's stock.

Charles Schwab Trading Up 0.6%

SCHW opened at $97.05 on Friday. The stock's fifty day moving average is $90.34 and its two-hundred day moving average is $82.81. The company has a market capitalization of $176.33 billion, a P/E ratio of 26.09, a PEG ratio of 0.93 and a beta of 0.93. The Charles Schwab Corporation has a 52 week low of $61.15 and a 52 week high of $98.28. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. The business had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same period last year, the business posted $0.73 EPS. The business's revenue was up 24.8% compared to the same quarter last year. Analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

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

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be issued a $0.27 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.11%. Charles Schwab's dividend payout ratio is presently 29.03%.

Wall Street Analyst Weigh In

SCHW has been the subject of several analyst reports. Keefe, Bruyette & Woods raised their price objective on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Bank of America raised their price objective on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and raised their price objective for the company from $65.00 to $82.00 in a research note on Monday, June 9th. The Goldman Sachs Group raised Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 price objective for the company in a research note on Friday, April 25th. Finally, Cowen reissued a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Two 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 company's stock. According to MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus target price of $98.65.

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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