The Charles Schwab Corporation $SCHW is Klein Pavlis & Peasley Financial Inc.'s 8th Largest Position

Key Points

• Klein Pavlis & Peasley Financial Inc. reduced its stake in Charles Schwab Corporation by 16.3%, now holding 3.0% of its investment portfolio in the company, valued at approximately $4.5 million.
• Institutional investors, including Vanguard Group and Price T Rowe Associates, have increased their holdings in Charles Schwab, demonstrating strong investor confidence with over 84% of the stock owned by such entities.
• Charles Schwab announced a $20 billion stock repurchase plan, indicating the board's belief that the stock is undervalued, alongside a quarterly dividend of $0.27 per share.

Klein Pavlis & Peasley Financial Inc. cut its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 16.3% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 49,072 shares of the financial services provider's stock after selling 9,536 shares during the quarter. Charles Schwab accounts for 3.0% of Klein Pavlis & Peasley Financial Inc.'s investment portfolio, making the stock its 8th largest position. Klein Pavlis & Peasley Financial Inc.'s holdings in Charles Schwab were worth $4,477,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Charles Schwab by 15.4% during the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after acquiring an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Charles Schwab by 12.3% during 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 purchasing an additional 8,954,248 shares in the last quarter. Northern Trust Corp raised its stake in Charles Schwab by 10.8% in the 1st quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock valued at $1,365,227,000 after purchasing an additional 1,700,384 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in Charles Schwab by 16.0% in the 1st quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock valued at $1,339,822,000 after purchasing an additional 2,355,309 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Charles Schwab by 5.0% during the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after purchasing an additional 743,906 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Charles Schwab

In other Charles Schwab news, General Counsel Peter J. Morgan III sold 50,016 shares of the 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 transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction dated 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 transaction, the chairman directly owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 267,213 shares of company stock worth $26,232,180 over the last quarter. 6.30% of the stock is currently owned by insiders.

Charles Schwab Trading Up 0.8%

NYSE SCHW opened at $95.52 on Monday. 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 market cap of $173.39 billion, a price-to-earnings ratio of 25.68, a PEG ratio of 0.94 and a beta of 0.96. The firm has a 50 day simple moving average of $95.55 and a 200-day simple moving average of $88.14. The Charles Schwab Corporation has a one year low of $62.41 and a one year high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The company had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the prior year, the business earned $0.73 EPS. Equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab declared that its board has approved a stock repurchase plan on Thursday, July 24th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Charles Schwab Announces Dividend

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

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Charles Schwab from $114.00 to $113.00 and set a "buy" rating on the stock in a research note on Tuesday, September 16th. Barclays boosted their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Citigroup lifted their price objective on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and boosted their price objective for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. Finally, Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Sixteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $100.00.

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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