RDA Financial Network Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• RDA Financial Network acquired a new stake in The Charles Schwab Corporation, purchasing 2,929 shares valued at approximately $267,000 in the second quarter.
• Several major institutional investors, including Vanguard Group and Price T Rowe Associates, have significantly increased their holdings in Charles Schwab, indicating strong institutional confidence in the company.
• Charles Schwab reported a 24.8% year-over-year increase in quarterly revenue, with earnings per share of $1.14, beating the consensus estimate by $0.04.

RDA Financial Network bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 2,929 shares of the financial services provider's stock, valued at approximately $267,000.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after buying an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in 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 buying an additional 8,954,248 shares during the last quarter. Northern Trust Corp increased its holdings in 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 buying an additional 1,700,384 shares during the last quarter. Alliancebernstein L.P. increased its holdings in 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 buying an additional 2,355,309 shares during the last quarter. Finally, Invesco Ltd. increased its holdings in 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 buying an additional 743,906 shares during the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab Price Performance

Shares of SCHW opened at $93.50 on Monday. The firm has a market capitalization of $169.72 billion, a price-to-earnings ratio of 25.13, a price-to-earnings-growth ratio of 0.92 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The Charles Schwab Corporation has a one year low of $61.81 and a one year high of $99.59. The stock's fifty day moving average is $95.41 and its 200-day moving average is $86.87.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results 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. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter last year, the business posted $0.73 earnings per share. The company's quarterly revenue was up 24.8% on a year-over-year basis. Equities analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab declared that its board has authorized a share buyback plan on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid 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 yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is currently 29.03%.

Insider Buying and Selling at Charles Schwab

In related news, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the transaction, the insider owned 58,999 shares of the company's stock, valued at $5,776,592.09. This trade represents a 29.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares in the company, valued at $58,388,148.56. This represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 298,214 shares of company stock valued at $29,022,580. Corporate insiders own 6.30% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SCHW shares. JMP Securities upped their price target on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research report on Monday, July 21st. Keefe, Bruyette & Woods upped their price target on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research report on Monday, July 21st. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and upped their price target for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Citigroup upped their price target on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Finally, Bank of America upped their price target on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research report on Monday, July 21st. Sixteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $99.60.

About Charles Schwab

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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