Parnassus Investments LLC Sells 387,840 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Parnassus Investments LLC reduced its holdings in The Charles Schwab Corporation by 22.9%, selling 387,840 shares in the first quarter and holding approximately 1.3 million shares valued at $102.34 million.
• The Charles Schwab Corporation reported a quarterly EPS of $1.14, exceeding analysts' expectations, with revenue growth of 24.8% year-over-year.
• Charles Schwab announced a $20 billion share buyback program, which allows the company to purchase up to 11.6% of its outstanding shares, signaling confidence from the board in the company's valuation.

Parnassus Investments LLC lessened its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 22.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,307,324 shares of the financial services provider's stock after selling 387,840 shares during the quarter. Parnassus Investments LLC owned about 0.07% of Charles Schwab worth $102,337,000 at the end of the most recent quarter.

Other large investors have also recently modified their holdings of the company. Atwood & Palmer Inc. bought a new stake in shares of Charles Schwab during the 1st quarter valued at about $25,000. Westside Investment Management Inc. boosted its position in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 150 shares during the last quarter. Stone House Investment Management LLC bought a new stake in shares of Charles Schwab during the 1st quarter valued at about $31,000. WFA Asset Management Corp bought a new stake in shares of Charles Schwab during the 1st quarter valued at about $33,000. Finally, Cornerstone Planning Group LLC boosted its position in shares of Charles Schwab by 90.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after acquiring an additional 220 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Performance

Shares of NYSE SCHW opened at $97.12 on Friday. The stock has a market cap of $176.30 billion, a price-to-earnings ratio of 26.11, a P/E/G ratio of 0.95 and a beta of 0.96. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a 1-year low of $61.16 and a 1-year high of $99.59. The stock's 50-day moving average is $94.45 and its 200 day moving average is $85.74.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly 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. The business had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.73 EPS. On average, sell-side analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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 paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's payout ratio is 29.03%.

Charles Schwab declared that its Board of Directors has approved a share buyback program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 11.6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on SCHW. Barclays lifted their price target on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Redburn Atlantic upgraded Charles Schwab from a "sell" rating to a "neutral" rating and lifted their price target for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Truist Financial lifted their price target on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research report on Friday, August 15th. 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 report on Monday, July 21st. Finally, Citigroup raised their price objective on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Charles Schwab currently has an average rating of "Moderate Buy" and a consensus target price of $99.60.

Insiders Place Their Bets

In other Charles Schwab news, insider Nigel J. Murtagh sold 24,096 shares of Charles Schwab stock in a transaction that occurred on Tuesday, July 29th. The stock was 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 of the company's stock, valued at $5,776,592.09. The trade was a 29.00% decrease in their position. 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 10,129 shares of Charles Schwab stock in a transaction that occurred 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 completion of the transaction, the insider directly owned 39,154 shares in the company, valued at $3,524,251.54. This trade represents a 20.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 238,843 shares of company stock valued at $23,239,273 in the last ninety days. Company insiders own 6.30% of the company's stock.

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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