The Charles Schwab Corporation $SCHW Holdings Trimmed by Blume Capital Management Inc.

Key Points

• Blume Capital Management Inc. has reduced its stake in The Charles Schwab Corporation by 5.7%, now holding 169,454 shares valued at approximately $15.46 million.
• The company reported $1.31 EPS for the latest quarter, exceeding analysts' expectations, alongside a 26.6% increase in quarterly revenue compared to the prior year.
• Charles Schwab initiated a $20 billion share buyback program, signaling management's belief that the stock is undervalued and aiming to repurchase up to 11.6% of its shares.

Blume Capital Management Inc. reduced its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 5.7% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 169,454 shares of the financial services provider's stock after selling 10,166 shares during the quarter. Charles Schwab makes up approximately 3.1% of Blume Capital Management Inc.'s investment portfolio, making the stock its 4th largest position. Blume Capital Management Inc.'s holdings in Charles Schwab were worth $15,461,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in the stock. Princeton Global Asset Management LLC bought a new position in Charles Schwab in the 2nd quarter worth about $25,000. RMG Wealth Management LLC bought a new position in Charles Schwab in the second quarter worth approximately $27,000. Mid American Wealth Advisory Group Inc. purchased a new position in Charles Schwab during the 2nd quarter worth $32,000. Westside Investment Management Inc. raised its position in 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 purchasing an additional 150 shares in the last quarter. Finally, Hoese & Co LLP lifted its holdings in shares of Charles Schwab by 131.6% in the 2nd quarter. Hoese & Co LLP now owns 352 shares of the financial services provider's stock worth $32,000 after buying an additional 200 shares during the period. 84.38% of the stock is currently owned by institutional investors.

Insider Transactions at Charles Schwab

In related news, insider Jonathan S. Beatty sold 6,144 shares of the business's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. The trade was a 34.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Paul V. Woolway sold 3,205 shares of the company'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 transaction, the insider directly owned 34,778 shares in the company, valued at $3,245,830.74. This 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 have sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is currently owned by corporate insiders.

Charles Schwab Stock Performance

SCHW stock opened at $95.12 on Wednesday. The Charles Schwab Corporation has a one year low of $65.88 and a one year high of $99.59. The firm has a market cap of $172.66 billion, a price-to-earnings ratio of 22.28, a PEG ratio of 0.85 and a beta of 0.97. 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 firm has a 50-day simple moving average of $94.55 and a two-hundred day simple moving average of $89.98.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data on Thursday, October 16th. The financial services provider reported $1.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.25 by $0.06. The firm had revenue of $6.14 billion for the quarter, compared to the consensus estimate of $5.93 billion. Charles Schwab had a net margin of 35.93% and a return on equity of 21.26%. The company's quarterly revenue was up 26.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.71 EPS. On average, equities analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab declared that its board has initiated a share buyback program 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 shares through open market purchases. Shares repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio is currently 25.29%.

Analysts Set New Price Targets

SCHW has been the topic of several research reports. Morgan Stanley cut their price target on Charles Schwab to $130.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 1st. Keefe, Bruyette & Woods increased their target price on shares of Charles Schwab from $109.00 to $111.00 and gave the stock an "outperform" rating in a report on Friday, October 17th. Bank of America raised their target price on shares of Charles Schwab from $84.00 to $86.00 and gave the company an "underperform" rating in a research report on Thursday, October 2nd. Truist Financial boosted their price target on shares of Charles Schwab from $112.00 to $113.00 and gave the company a "buy" rating in a report on Friday. Finally, Zacks Research cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 17th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $106.00.

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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