Commonwealth Equity Services LLC Sells 21,693 Shares of The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Commonwealth Equity Services LLC sold 21,693 shares of The Charles Schwab Corporation, decreasing its holdings by 5.6%, while still owning 366,258 shares worth approximately $28.67 million.
• Analysts have recently raised their price targets for Charles Schwab, with Morgan Stanley increasing their target from $117.00 to $131.00, reflecting a generally positive outlook on the stock.
• The Charles Schwab Corporation announced a $20 billion share repurchase plan and a quarterly dividend of $0.27 per share, demonstrating confidence in its financial health amid strong earnings growth.

Commonwealth Equity Services LLC reduced its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 5.6% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 366,258 shares of the financial services provider's stock after selling 21,693 shares during the period. Commonwealth Equity Services LLC's holdings in Charles Schwab were worth $28,671,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Sheaff Brock Investment Advisors LLC lifted its stake in shares of Charles Schwab by 1.6% in the 1st quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock valued at $625,000 after acquiring an additional 129 shares during the last quarter. HM Payson & Co. increased its stake in Charles Schwab by 0.7% in the 1st quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after purchasing an additional 130 shares during the period. Cornerstone Wealth Management LLC lifted its position in Charles Schwab by 2.1% in the first quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock valued at $513,000 after purchasing an additional 132 shares during the last quarter. Journey Strategic Wealth LLC boosted its stake in shares of Charles Schwab by 3.1% during the first quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock valued at $351,000 after purchasing an additional 135 shares during the period. Finally, Premier Path Wealth Partners LLC grew its holdings in Charles Schwab by 1.8% in the 1st quarter. Premier Path Wealth Partners LLC now owns 7,817 shares of the financial services provider's stock worth $612,000 after acquiring an additional 140 shares during the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Price Performance

SCHW traded down $0.81 on Thursday, hitting $95.91. 7,260,222 shares of the company's stock traded hands, compared to its average volume of 9,161,237. The company's 50 day simple moving average is $91.98 and its 200-day simple moving average is $84.24. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.53. The Charles Schwab Corporation has a one year low of $61.16 and a one year high of $99.59. The firm has a market cap of $174.26 billion, a price-to-earnings ratio of 25.78, a P/E/G ratio of 0.93 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted 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. The company had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.73%. Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. During the same period last year, the company posted $0.73 earnings per share. As a group, research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be paid a dividend of $0.27 per share. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. Charles Schwab's dividend payout ratio is presently 29.03%.

Charles Schwab announced that its Board of Directors has initiated a stock repurchase 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 repurchase up to 11.6% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. 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. JPMorgan Chase & Co. lifted their price objective on Charles Schwab from $92.00 to $95.00 and gave the stock an "overweight" rating in a research report on Monday, April 21st. Morgan Stanley upped their target price on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Finally, Barclays lifted their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have given a buy rating to the company's stock. Based on data from MarketBeat.com, Charles Schwab presently has a consensus rating of "Moderate Buy" and an average price target of $99.35.

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 10,129 shares of the business's stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total value of $911,711.29. Following the sale, the insider owned 39,154 shares in the company, valued at approximately $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the sale, the insider directly owned 58,999 shares in the company, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold 308,016 shares of company stock valued at $29,341,433 in the last 90 days. 6.30% of the stock is currently owned by insiders.

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.