The Charles Schwab Corporation $SCHW Shares Purchased by Smith Group Asset Management LLC

Key Points

• Smith Group Asset Management LLC significantly increased its stake in The Charles Schwab Corporation by 54.1% during Q2, now owning 320,718 shares valued at approximately $29.3 million.
• Charles Schwab's board authorized a $20 billion stock buyback plan, indicating they perceive the shares as undervalued.
• The company reported strong quarterly earnings, with $1.31 EPS exceeding analyst estimates of $1.25, and revenue up 26.6% year-over-year.

Smith Group Asset Management LLC increased its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 54.1% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 320,718 shares of the financial services provider's stock after acquiring an additional 112,632 shares during the period. Charles Schwab makes up about 1.9% of Smith Group Asset Management LLC's portfolio, making the stock its 21st largest holding. Smith Group Asset Management LLC's holdings in Charles Schwab were worth $29,262,000 at the end of the most recent quarter.

Other institutional investors have also recently modified their holdings of the company. Princeton Global Asset Management LLC acquired a new stake in shares of Charles Schwab during the 2nd quarter valued at about $25,000. RMG Wealth Management LLC acquired a new stake in shares of Charles Schwab during the 2nd quarter valued at about $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Charles Schwab during the 2nd quarter valued at about $32,000. Westside Investment Management Inc. grew its position 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 valued at $27,000 after acquiring an additional 150 shares during the period. Finally, Hoese & Co LLP boosted its holdings in 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 last quarter. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Nigel J. Murtagh sold 24,096 shares of Charles Schwab 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 sale, the insider owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the sale, the insider directly owned 11,923 shares in the company, valued at approximately $1,154,265.63. The trade was a 34.01% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is owned by company insiders.

Charles Schwab Trading Up 0.2%

SCHW opened at $94.52 on Friday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The company's 50 day simple moving average is $94.46 and its two-hundred day simple moving average is $90.18. The Charles Schwab Corporation has a 1-year low of $65.88 and a 1-year high of $99.59. The firm has a market capitalization of $171.58 billion, a price-to-earnings ratio of 22.14, a price-to-earnings-growth ratio of 0.85 and a beta of 0.97.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $1.25 by $0.06. Charles Schwab had a net margin of 35.93% and a return on equity of 21.26%. The business had revenue of $6.14 billion for the quarter, compared to analyst estimates of $5.93 billion. During the same period last year, the company posted $0.71 EPS. The business's revenue was up 26.6% on a year-over-year basis. Analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its board has authorized a stock buyback plan 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 stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 14th will be given 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 of this dividend is Friday, November 14th. Charles Schwab's payout ratio is presently 25.29%.

Analyst Upgrades and Downgrades

SCHW has been the topic of several research analyst reports. Barclays lifted their price objective on Charles Schwab from $114.00 to $115.00 and gave the stock an "overweight" rating in a report on Friday, October 17th. Cowen reiterated a "buy" rating on shares of Charles Schwab in a report on Friday, October 17th. BMO Capital Markets initiated coverage on Charles Schwab in a report on Friday, October 3rd. They issued an "outperform" rating and a $110.00 price objective on the stock. Morgan Stanley lowered their price objective on Charles Schwab to $130.00 and set an "overweight" rating on the stock in a report on Wednesday, October 1st. Finally, Keefe, Bruyette & Woods lifted their price objective on Charles Schwab from $109.00 to $111.00 and gave the stock an "outperform" rating in a report on Friday, October 17th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus 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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