The Charles Schwab Corporation $SCHW Position Trimmed by Boston Common Asset Management LLC

Key Points

• Boston Common Asset Management LLC has reduced its stake in The Charles Schwab Corporation by 2.7%, now holding 128,024 shares valued at approximately $11.68 million.
• Charles Schwab has announced a $20 billion stock buyback plan reflecting management's belief that the stock is undervalued, allowing the company to buy up to 11.6% of its shares.
• The company reported strong quarterly earnings, with a net margin of 33.68% and a revenue increase of 24.8% compared to the same quarter last year.

Boston Common Asset Management LLC decreased its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 2.7% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 128,024 shares of the financial services provider's stock after selling 3,588 shares during the period. Boston Common Asset Management LLC's holdings in Charles Schwab were worth $11,681,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. Pine Haven Investment Counsel Inc increased its stake in Charles Schwab by 0.3% during the second quarter. Pine Haven Investment Counsel Inc now owns 41,793 shares of the financial services provider's stock valued at $3,813,000 after purchasing an additional 110 shares during the last quarter. Traveka Wealth LLC increased its stake in Charles Schwab by 4.3% during the second quarter. Traveka Wealth LLC now owns 2,841 shares of the financial services provider's stock valued at $259,000 after purchasing an additional 117 shares during the last quarter. Bank of Stockton grew its position in shares of Charles Schwab by 1.2% during the second quarter. Bank of Stockton now owns 10,593 shares of the financial services provider's stock worth $967,000 after acquiring an additional 123 shares during the last quarter. Sheaff Brock Investment Advisors LLC grew its position in shares of Charles Schwab by 1.6% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after acquiring an additional 129 shares during the last quarter. Finally, HM Payson & Co. grew its position in shares of Charles Schwab by 0.7% during the first quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after acquiring an additional 130 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Insider Activity at Charles Schwab

In other news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the transaction, the chairman owned 590,734 shares in the company, valued at approximately $58,388,148.56. This trade represents a 22.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider owned 11,923 shares of the company's stock, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 267,128 shares of company stock worth $26,232,077. Company insiders own 6.30% of the company's stock.

Charles Schwab Stock Performance

SCHW stock opened at $94.13 on Friday. The company has a market capitalization of $170.87 billion, a P/E ratio of 25.30, a PEG ratio of 0.91 and a beta of 0.97. The company has a 50-day simple moving average of $95.37 and a 200 day simple moving average of $88.64. The Charles Schwab Corporation has a fifty-two week low of $64.07 and a fifty-two 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.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.04. The business had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The company's quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.73 earnings per share. Sell-side analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab declared that its board has authorized a stock buyback plan on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock buyback plans are often 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 given a dividend of $0.27 per share. The ex-dividend date was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Analyst Ratings Changes

Several equities analysts have recently commented on SCHW shares. Zacks Research lowered shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 17th. Bank of America upped their price target on shares of Charles Schwab from $84.00 to $86.00 and gave the stock an "underperform" rating in a research report on Thursday. Piper Sandler upped their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 15th. JMP Securities upped their price target on shares of Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Finally, Citigroup upped their price target 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. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Charles Schwab currently has an average rating of "Moderate Buy" and an average target price of $100.52.

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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