Timucuan Asset Management Inc. FL Cuts Stake in The Charles Schwab Corporation $SCHW

Key Points

• Timucuan Asset Management Inc. FL has trimmed its holdings in The Charles Schwab Corporation, now holding approximately 3.27 million shares, representing about 7.9% of its total assets.
• Several institutional investors, including Westside Investment Management Inc. and Cornerstone Planning Group LLC, have significantly increased their stakes in Charles Schwab during the first quarter.
• Charles Schwab has announced a $20 billion stock repurchase program, indicating management's belief that the stock is undervalued; the company’s shares are currently trading around $96.92.

Timucuan Asset Management Inc. FL trimmed its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 0.2% in the first quarter, according to its most recent filing with the SEC. The firm owned 3,272,118 shares of the financial services provider's stock after selling 7,875 shares during the period. Charles Schwab makes up about 7.9% of Timucuan Asset Management Inc. FL's investment portfolio, making the stock its 4th biggest position. Timucuan Asset Management Inc. FL owned 0.18% of Charles Schwab worth $256,141,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Atwood & Palmer Inc. bought a new position in shares of Charles Schwab during the 1st quarter worth about $25,000. Westside Investment Management Inc. lifted its holdings in shares of Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after acquiring an additional 150 shares during the period. Stone House Investment Management LLC bought a new position in shares of Charles Schwab during the 1st quarter worth about $31,000. WFA Asset Management Corp bought a new position in shares of Charles Schwab during the 1st quarter worth about $33,000. Finally, Cornerstone Planning Group LLC lifted its holdings in shares of Charles Schwab by 90.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock worth $36,000 after acquiring an additional 220 shares during the period. 84.38% of the stock is owned by institutional investors.

Insider Activity

In related news, insider Nigel J. Murtagh sold 24,096 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the insider owned 58,999 shares in the company, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 298,299 shares of company stock valued at $29,005,931. 6.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on SCHW shares. Cowen reiterated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Wells Fargo & Company set a $102.00 target price on shares of Charles Schwab and gave the stock an "overweight" rating in a research report on Friday, July 18th. Citigroup increased their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Bank of America increased their target price on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Finally, Morgan Stanley increased their target price on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Sixteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Price Performance

SCHW traded down $1.18 during midday trading on Friday, hitting $95.91. The company had a trading volume of 8,829,399 shares, compared to its average volume of 7,885,997. 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 company has a market capitalization of $174.10 billion, a PE ratio of 25.78, a P/E/G ratio of 0.94 and a beta of 0.96. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The firm's 50-day simple moving average is $94.58 and its 200-day simple moving average is $85.85.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company's revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.73 EPS. Equities research analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab declared that its Board of Directors has initiated a stock repurchase plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its shares are undervalued.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders 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 of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

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.