Talbot Financial LLC Buys 25,913 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Talbot Financial LLC increased its stake in The Charles Schwab Corporation by 16.3% during the second quarter, acquiring an additional 25,913 shares to hold a total of 184,574 shares.
• Charles Schwab's recent quarterly earnings surpassed expectations with $1.14 EPS, driving a revenue increase of 24.8% year-over-year.
• The company has announced a $20.00 billion share buyback program, reflecting confidence from its board that the stock may be undervalued.

Talbot Financial LLC grew its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 16.3% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 184,574 shares of the financial services provider's stock after purchasing an additional 25,913 shares during the period. Charles Schwab makes up about 1.6% of Talbot Financial LLC's portfolio, making the stock its 24th biggest position. Talbot Financial LLC's holdings in Charles Schwab were worth $16,841,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of the stock. Vanguard Group Inc. lifted 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 valued at $11,616,380,000 after purchasing an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD raised its holdings 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 period. Northern Trust Corp raised its holdings in shares of 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 worth $1,365,227,000 after buying an additional 1,700,384 shares during the period. Alliancebernstein L.P. raised its holdings in shares of 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 worth $1,339,822,000 after buying an additional 2,355,309 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Charles Schwab by 5.0% in the first quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after buying an additional 743,906 shares during the period. 84.38% of the stock is owned by institutional investors.

Charles Schwab Trading Up 1.5%

Shares of NYSE:SCHW opened at $94.13 on Friday. The Charles Schwab Corporation has a 12-month low of $64.07 and a 12-month high of $99.59. The business's fifty day simple moving average is $95.37 and its 200-day simple moving average is $88.64. The company has a market capitalization of $170.87 billion, a PE ratio of 25.30, a P/E/G ratio of 0.91 and a beta of 0.97. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $5.64 billion. During the same period last year, the business posted $0.73 EPS. The business's revenue was up 24.8% compared to the same quarter last year. As a group, equities research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The business also recently declared 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 dividend on an annualized basis and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is currently 29.03%.

Charles Schwab announced that its board has authorized a share buyback program on Thursday, July 24th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to buy 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.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Zacks Research downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 17th. Truist Financial set a $112.00 price target on Charles Schwab in a report on Thursday. Piper Sandler raised their price objective on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. Finally, Citigroup raised their price objective on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $100.52.

Insiders Place Their Bets

In other news, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total value of $594,800.64. Following the transaction, the insider directly owned 11,923 shares in the company, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction 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 completion of the sale, the chairman directly owned 590,734 shares of the company's stock, valued at $58,388,148.56. The trade was a 22.74% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 267,128 shares of company stock worth $26,232,077. Insiders own 6.30% of the company's stock.

Charles Schwab 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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