Stephens Inc. AR Reduces Stock Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Stephens Inc. AR has reduced its stake in The Charles Schwab Corporation by 20% during Q2, now holding 24,393 shares valued at approximately $2.2 million.
• Despite Stephen's sell-off, Vanguard Personalized Indexing Management increased its position by 26.8%, demonstrating ongoing institutional interest in Charles Schwab.
• The company reported a quarterly earnings per share of $1.31, surpassing estimates and showing a year-over-year revenue growth of 26.6%.

Stephens Inc. AR reduced its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 20.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 24,393 shares of the financial services provider's stock after selling 6,101 shares during the period. Stephens Inc. AR's holdings in Charles Schwab were worth $2,226,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently added to or reduced their stakes in the company. Vanguard Personalized Indexing Management LLC increased its position in Charles Schwab by 26.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 190,538 shares of the financial services provider's stock valued at $17,387,000 after buying an additional 40,275 shares in the last quarter. Bain Capital Public Equity Management II LLC acquired a new position in Charles Schwab during the 1st quarter valued at about $79,605,000. Independent Advisor Alliance increased its position in Charles Schwab by 13.8% during the 1st quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock valued at $3,061,000 after buying an additional 4,754 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH increased its position in Charles Schwab by 6.2% during the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock valued at $92,493,000 after buying an additional 68,858 shares in the last quarter. Finally, PFG Investments LLC increased its position in Charles Schwab by 10.2% during the 2nd quarter. PFG Investments LLC now owns 5,951 shares of the financial services provider's stock valued at $543,000 after buying an additional 550 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Price Performance

Shares of SCHW opened at $94.24 on Thursday. The Charles Schwab Corporation has a fifty-two week low of $65.88 and a fifty-two week high of $99.59. 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 company has a market capitalization of $171.06 billion, a P/E ratio of 22.07, a P/E/G ratio of 0.85 and a beta of 0.97. The business's 50-day moving average is $94.53 and its two-hundred day moving average is $90.01.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its earnings results on Thursday, October 16th. The financial services provider reported $1.31 EPS for the quarter, beating analysts' consensus estimates of $1.25 by $0.06. Charles Schwab had a return on equity of 21.26% and a net margin of 35.93%.The firm had revenue of $6.14 billion for the quarter, compared to analysts' expectations of $5.93 billion. During the same period last year, the firm earned $0.71 EPS. The company's quarterly revenue was up 26.6% on a year-over-year basis. Research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

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

Insider Activity

In other news, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the sale, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. This trade represents a 34.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $93.33, for a total value of $299,122.65. Following the sale, the insider owned 34,778 shares in the company, valued at $3,245,830.74. This trade represents a 8.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft raised their target price on Charles Schwab from $119.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, October 17th. TD Cowen raised their target price on Charles Schwab from $129.00 to $134.00 and gave the stock a "buy" rating in a research note on Friday, October 17th. Bank of America raised their target price on Charles Schwab from $84.00 to $86.00 and gave the stock an "underperform" rating in a research note on Thursday, October 2nd. Zacks Research lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $114.00 target price on shares of Charles Schwab in a research note on Friday, October 17th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target 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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