The Charles Schwab Corporation $SCHW Shares Sold by Birmingham Capital Management Co. Inc. AL

Key Points

• Birmingham Capital Management Co. Inc. AL reduced its stake in Charles Schwab by 29.2% in Q2, now holding 11,375 shares valued at approximately $1,038,000.
• Charles Schwab reported $1.31 EPS for the most recent quarter, exceeding analysts' expectations, and saw a revenue increase of 26.6% year-over-year to $6.14 billion.
• The company has initiated a $20 billion stock repurchase plan, signaling confidence in its stock's valuation as part of its long-term strategy.

Birmingham Capital Management Co. Inc. AL reduced its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 29.2% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 11,375 shares of the financial services provider's stock after selling 4,700 shares during the quarter. Birmingham Capital Management Co. Inc. AL's holdings in Charles Schwab were worth $1,038,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Personalized Indexing Management LLC increased its stake in shares of Charles Schwab by 26.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 190,538 shares of the financial services provider's stock worth $17,387,000 after acquiring an additional 40,275 shares during the last quarter. Bain Capital Public Equity Management II LLC acquired a new stake in shares of Charles Schwab in the 1st quarter worth $79,605,000. Independent Advisor Alliance increased its stake in shares of Charles Schwab by 13.8% in the 1st quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock worth $3,061,000 after acquiring an additional 4,754 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in shares of Charles Schwab by 6.2% in the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock worth $92,493,000 after acquiring an additional 68,858 shares during the last quarter. Finally, PFG Investments LLC increased its stake in shares of Charles Schwab by 10.2% in the 2nd quarter. PFG Investments LLC now owns 5,951 shares of the financial services provider's stock worth $543,000 after acquiring an additional 550 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Stock Performance

Shares of Charles Schwab stock opened at $94.17 on Monday. The business has a 50-day moving average of $94.68 and a 200 day moving average of $89.76. The Charles Schwab Corporation has a 12 month low of $65.88 and a 12 month high of $99.59. The stock has a market capitalization of $170.93 billion, a price-to-earnings ratio of 22.05, a price-to-earnings-growth ratio of 0.88 and a beta of 0.97. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55.

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

Charles Schwab Announces Dividend

The business also recently disclosed 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 was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 25.29%.

Charles Schwab declared that its Board of Directors has initiated a stock repurchase 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 stock is undervalued.

Wall Street Analysts Forecast Growth

SCHW has been the subject of a number of recent research reports. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $114.00 target price on shares of Charles Schwab in a research note on Friday. Morgan Stanley cut their price objective on Charles Schwab to $130.00 and set an "overweight" rating for the company in a research report on Wednesday, October 1st. Barclays raised their price objective on Charles Schwab from $114.00 to $115.00 and gave the stock an "overweight" rating in a research report on Friday. JMP Securities reissued a "market outperform" rating and set a $110.00 price objective on shares of Charles Schwab in a research report on Friday. Finally, Zacks Research downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 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 stock. According to data from MarketBeat.com, Charles Schwab has a consensus rating of "Moderate Buy" and a consensus target price of $104.70.

Insiders Place Their Bets

In other news, insider Paul V. Woolway sold 3,290 shares of Charles Schwab stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $96.06, for a total value of $316,037.40. Following the completion of the transaction, the insider owned 41,188 shares in the company, valued at approximately $3,956,519.28. This trade represents a 7.40% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the transaction, the insider owned 11,923 shares of the company's stock, valued at $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 ninety days, insiders have sold 267,128 shares of company stock worth $26,232,077. Corporate 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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