Palacios Wealth Management LLC Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• Palacios Wealth Management LLC made a significant investment of $573,000 in The Charles Schwab Corporation, acquiring over 6,000 shares in the second quarter.
• Charles Schwab recently reported earnings of $1.14 per share for the quarter, exceeding analysts' expectations, with revenue increasing by 24.8% year-over-year.
• The company approved a $20 billion share repurchase program, indicating confidence in its stock valuation and plans to buy back up to 11.6% of its outstanding shares.

Palacios Wealth Management LLC bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The firm bought 6,285 shares of the financial services provider's stock, valued at approximately $573,000.

Several other hedge funds have also made changes to their positions in SCHW. Vanguard Group Inc. raised its stake in shares of Charles Schwab by 15.4% in 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 buying an additional 19,817,022 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position 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 worth $6,422,795,000 after buying an additional 8,954,248 shares during the last quarter. Northern Trust Corp lifted its position in shares of Charles Schwab by 10.8% during the 1st quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after purchasing an additional 1,700,384 shares during the last quarter. Alliancebernstein L.P. increased its stake in Charles Schwab by 16.0% during 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 acquiring an additional 2,355,309 shares during the period. Finally, Invesco Ltd. grew its stake in shares of Charles Schwab by 5.0% in the 1st 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. Institutional investors own 84.38% of the company's stock.

Insider Buying and Selling

In other news, Chairman Walter W. Bettinger sold 173,876 shares of the company's stock in a transaction dated 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 in the company, valued at $58,388,148.56. This represents a 22.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares in the company, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 267,213 shares of company stock valued at $26,232,180 in the last three months. Insiders own 6.30% of the company's stock.

Charles Schwab Stock Down 0.8%

Shares of NYSE:SCHW traded down $0.74 during trading on Tuesday, hitting $93.69. 3,943,873 shares of the company were exchanged, compared to its average volume of 9,985,661. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The Charles Schwab Corporation has a 12-month low of $62.41 and a 12-month high of $99.59. The firm's 50 day moving average price is $95.46 and its 200-day moving average price is $87.55. The stock has a market capitalization of $170.07 billion, a P/E ratio of 25.19, a PEG ratio of 0.93 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. During the same period last year, the business posted $0.73 EPS. On average, 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 stock buyback program on Thursday, July 24th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 11.6% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Charles Schwab Dividend Announcement

The business 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. The ex-dividend date was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on SCHW. Barclays raised their price objective on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Raymond James Financial restated an "outperform" rating and set a $99.00 price objective on shares of Charles Schwab in a research report on Friday, July 18th. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Charles Schwab from $114.00 to $113.00 and set a "buy" rating on the stock in a research note on Tuesday, September 16th. Citigroup boosted their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Finally, Redburn Atlantic upgraded shares of Charles Schwab from a "sell" rating to a "neutral" rating and boosted their target price for the company from $65.00 to $82.00 in a report on Monday, June 9th. Sixteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.00.

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.