The Charles Schwab Corporation $SCHW is 1248 Management LLC's 9th Largest Position

Key Points

• 1248 Management LLC reduced its stake in The Charles Schwab Corporation by 25.0%, now holding 70,297 shares, which represent 3.0% of its overall portfolio.
• The company recently reported an earnings per share (EPS) of $1.14 for the last quarter, exceeding analysts' expectations by $0.04.
• Charles Schwab has authorized a $20 billion stock buyback program, which indicates that the company's board believes its stock may be undervalued.

1248 Management LLC trimmed its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 25.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 70,297 shares of the financial services provider's stock after selling 23,432 shares during the period. Charles Schwab comprises 3.0% of 1248 Management LLC's holdings, making the stock its 9th biggest holding. 1248 Management LLC's holdings in Charles Schwab were worth $5,503,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently added to or reduced their stakes in the stock. Sheaff Brock Investment Advisors LLC boosted its position in 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 buying an additional 129 shares during the period. HM Payson & Co. boosted its position 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 valued at $1,509,000 after buying an additional 130 shares during the period. Cornerstone Wealth Management LLC boosted its position in Charles Schwab by 2.1% in the 1st quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock valued at $513,000 after buying an additional 132 shares during the period. Journey Strategic Wealth LLC boosted its position in Charles Schwab by 3.1% in the 1st quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock valued at $351,000 after buying an additional 135 shares during the period. Finally, Meridian Wealth Management LLC boosted its position in Charles Schwab by 2.2% in the 1st quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock valued at $485,000 after buying an additional 136 shares during the period. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Down 1.2%

Shares of SCHW opened at $95.91 on Monday. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $174.10 billion, a price-to-earnings ratio of 25.78, a PEG ratio of 0.94 and a beta of 0.96. The stock's 50-day moving average price is $94.58 and its 200-day moving average price is $85.88.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping 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 firm had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter in the prior year, the business earned $0.73 earnings per share. The company's revenue was up 24.8% compared to the same quarter last year. On average, sell-side analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were paid a $0.27 dividend. 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 payout ratio is currently 29.03%.

Charles Schwab declared that its Board of Directors has authorized a stock buyback program on Thursday, July 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

SCHW has been the topic of a number of research reports. William Blair downgraded shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. Cowen reissued a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. TD Securities increased their price target on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research report on Tuesday, May 20th. Raymond James Financial reissued an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research report on Friday, July 18th. Finally, Morgan Stanley increased their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Sixteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Charles Schwab has a consensus rating of "Moderate Buy" and an average target price of $99.60.

Insider Transactions at Charles Schwab

In related news, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total value of $4,851,552.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total value of $911,711.29. Following the completion of the transaction, the insider owned 39,154 shares of the company's stock, valued at approximately $3,524,251.54. This represents a 20.55% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 295,009 shares of company stock worth $28,717,464 over the last quarter. Company insiders own 6.30% of the company's stock.

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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