Pacific Heights Asset Management LLC Buys 27,000 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Pacific Heights Asset Management LLC increased its stake in The Charles Schwab Corporation by 14.4%, acquiring an additional 27,000 shares, bringing its total holdings to 215,000 shares valued at approximately $19.6 million.
• Charles Schwab reported a quarterly earnings per share (EPS) of $1.31, exceeding expectations, with revenues of $6.14 billion, marking a year-over-year increase of 26.6%.
• The company has initiated a $20 billion stock buyback program, indicating management's belief that the stock is undervalued, while institutional investors collectively own 84.38% of its shares.

Pacific Heights Asset Management LLC grew its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 14.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 215,000 shares of the financial services provider's stock after buying an additional 27,000 shares during the period. Charles Schwab makes up 1.0% of Pacific Heights Asset Management LLC's portfolio, making the stock its 22nd biggest position. Pacific Heights Asset Management LLC's holdings in Charles Schwab were worth $19,617,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Pine Haven Investment Counsel Inc boosted its holdings in Charles Schwab by 0.3% during the second quarter. Pine Haven Investment Counsel Inc now owns 41,793 shares of the financial services provider's stock worth $3,813,000 after buying an additional 110 shares during the last quarter. Traveka Wealth LLC raised its position in shares of Charles Schwab by 4.3% during the second quarter. Traveka Wealth LLC now owns 2,841 shares of the financial services provider's stock worth $259,000 after purchasing an additional 117 shares during the period. Tlwm raised its position in shares of Charles Schwab by 0.7% during the second quarter. Tlwm now owns 17,687 shares of the financial services provider's stock worth $1,614,000 after purchasing an additional 120 shares during the period. Bank of Stockton raised its position in shares of Charles Schwab by 1.2% during the second quarter. Bank of Stockton now owns 10,593 shares of the financial services provider's stock worth $967,000 after purchasing an additional 123 shares during the period. Finally, Sheaff Brock Investment Advisors LLC raised its position 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 worth $625,000 after purchasing an additional 129 shares during the period. Institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Up 0.2%

Shares of Charles Schwab stock opened at $95.12 on Wednesday. The firm has a market cap of $172.66 billion, a PE ratio of 22.28, a P/E/G ratio of 0.85 and a beta of 0.97. The Charles Schwab Corporation has a 52-week low of $65.88 and a 52-week high of $99.59. The business's 50 day simple moving average is $94.55 and its 200 day simple moving average is $89.98. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, topping the consensus estimate of $1.25 by $0.06. The firm had revenue of $6.14 billion for the quarter, compared to analyst estimates of $5.93 billion. Charles Schwab had a return on equity of 21.26% and a net margin of 35.93%.The business's quarterly revenue was up 26.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.71 EPS. On average, 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 of Directors has approved a stock buyback program on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were given a dividend of $0.27 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. Charles Schwab's payout ratio is 25.29%.

Insider Activity

In other news, insider Paul V. Woolway sold 3,290 shares of Charles Schwab stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $96.06, for a total transaction of $316,037.40. Following the completion of the transaction, the insider directly owned 41,188 shares in the company, valued at approximately $3,956,519.28. The trade was a 7.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 267,128 shares of company stock worth $26,232,077. Corporate insiders own 6.30% of the company's stock.

Wall Street Analysts Forecast Growth

SCHW has been the topic of a number of research analyst reports. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research report on Friday, July 18th. Keefe, Bruyette & Woods raised their price target on Charles Schwab from $109.00 to $111.00 and gave the stock an "outperform" rating in a research report on Friday, October 17th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $114.00 price target on shares of Charles Schwab in a research report on Friday. BMO Capital Markets initiated coverage on Charles Schwab in a research report on Friday, October 3rd. They set an "outperform" rating and a $110.00 price target on the stock. Finally, William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. One research 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. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $106.00.

Charles Schwab Company 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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