Notis McConarty Edward Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Notis McConarty Edward acquired 11,895 shares of The Charles Schwab Corporation, valued at approximately $1,085,000, in the second quarter.
• The company's board has authorized a $20.00 billion share buyback program, signaling confidence in the company's valuation.
• Charles Schwab reported earnings of $1.14 per share for the last quarter, exceeding analyst expectations, with revenue increasing by 24.8% year-over-year.

Notis McConarty Edward acquired a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 11,895 shares of the financial services provider's stock, valued at approximately $1,085,000.

Several other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after buying an additional 19,817,022 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of Charles Schwab by 12.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after purchasing an additional 8,954,248 shares during the period. Northern Trust Corp boosted its stake in shares of Charles Schwab by 10.8% in the first quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock valued at $1,365,227,000 after purchasing an additional 1,700,384 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Charles Schwab by 16.0% in the first quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock valued at $1,339,822,000 after purchasing an additional 2,355,309 shares during the period. Finally, Invesco Ltd. boosted its stake in shares of Charles Schwab by 5.0% in the first quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock valued at $1,220,107,000 after purchasing an additional 743,906 shares during the period. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab Trading Down 0.2%

NYSE SCHW opened at $93.82 on Thursday. The company has a market capitalization of $170.30 billion, a price-to-earnings ratio of 25.22, a price-to-earnings-growth ratio of 0.91 and a beta of 0.97. The Charles Schwab Corporation has a 12 month low of $64.97 and a 12 month high of $99.59. The company's fifty day moving average price is $95.11 and its two-hundred day moving average price is $88.89. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The company had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm's revenue was up 24.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.73 earnings per share. As a group, research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab announced that its board has authorized a share buyback program 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 programs are generally an indication that the company's leadership believes its shares are undervalued.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio is 29.03%.

Insider Activity at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the sale, the insider directly owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul V. Woolway sold 3,205 shares of the stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $93.33, for a total transaction of $299,122.65. Following the completion of the sale, the insider directly owned 34,778 shares in the company, valued at approximately $3,245,830.74. This trade represents a 8.44% decrease in their position. 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 ninety days. 6.30% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on SCHW. Raymond James Financial restated an "outperform" rating and issued a $99.00 target price on shares of Charles Schwab in a research note on Friday, July 18th. Bank of America upped their target price on shares of Charles Schwab from $84.00 to $86.00 and gave the company an "underperform" rating in a research note on Thursday, October 2nd. Morgan Stanley decreased their target price on shares of Charles Schwab to $130.00 and set an "overweight" rating for the company in a research note on Wednesday, October 1st. Citigroup upped their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Finally, Keefe, Bruyette & Woods upped their target price on shares of Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. One investment 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 issued a Sell rating to the stock. According to data from MarketBeat, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus price target of $100.57.

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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