CX Institutional Sells 48,335 Shares of The Charles Schwab Corporation $SCHW

Key Points

• CX Institutional reduced its stake in The Charles Schwab Corporation by 26.7%, now holding 132,578 shares worth approximately $12.1 million after selling 48,335 shares in the second quarter.
• Several large investors such as Vanguard Group Inc. and Wellington Management Group LLP increased their holdings significantly during the first quarter, reflecting a strong institutional interest in the stock.
• The company announced a quarterly dividend of $0.27 and authorized a $20 billion share buyback plan, indicating confidence in its long-term value.

CX Institutional reduced its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 26.7% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 132,578 shares of the financial services provider's stock after selling 48,335 shares during the period. CX Institutional's holdings in Charles Schwab were worth $12,096,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Bain Capital Public Equity Management II LLC acquired a new stake in shares of Charles Schwab in the 1st quarter valued at $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 valued at $3,061,000 after buying an additional 4,754 shares during the period. 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 valued at $92,493,000 after buying an additional 68,858 shares during the period. United Services Automobile Association grew its stake in shares of Charles Schwab by 14.1% during the first quarter. United Services Automobile Association now owns 39,512 shares of the financial services provider's stock worth $3,074,000 after purchasing an additional 4,869 shares during the period. Finally, World Investment Advisors grew its stake in shares of Charles Schwab by 7.6% during the first quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock worth $12,760,000 after purchasing an additional 11,505 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Stock Performance

Shares of Charles Schwab stock traded up $0.01 on Monday, hitting $94.34. The stock had a trading volume of 11,068,868 shares, compared to its average volume of 10,016,961. The Charles Schwab Corporation has a twelve month low of $62.41 and a twelve month high of $99.59. The business's 50 day moving average is $95.42 and its two-hundred day moving average is $87.41. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The stock has a market cap of $171.25 billion, a price-to-earnings ratio of 25.36, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96.

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

Charles Schwab Dividend Announcement

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

Charles Schwab announced that its Board of Directors has authorized a share buyback program on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on SCHW shares. Zacks Research cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Piper Sandler upped their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. JMP Securities upped their target price on Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a report on Monday, July 21st. Morgan Stanley upped their target price on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Finally, Bank of America upped their target price on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a report on Monday, July 21st. Sixteen analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Charles Schwab has a consensus rating of "Moderate Buy" and a consensus price target of $100.00.

Insider Activity

In other Charles Schwab news, General Counsel Peter J. Morgan III sold 50,016 shares of the company's 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of the company's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total value of $594,800.64. Following the sale, 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 ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 267,213 shares of company stock valued at $26,232,180. 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.