The Charles Schwab Corporation $SCHW Shares Sold by Highland Capital Management LLC

Key Points

• Highland Capital Management LLC reduced its stake in The Charles Schwab Corporation by 21.1%, selling 4,550 shares and ending with 17,026 shares valued at approximately $1.55 million.
• Charles Schwab reported a strong performance in its most recent quarter, with earnings per share of $1.14 exceeding expectations and a revenue of $5.85 billion, marking a 24.8% year-over-year increase.
• The company announced a share repurchase plan authorizing up to $20 billion in stock buybacks, reflecting confidence in the company's valuation according to its Board of Directors.

Highland Capital Management LLC trimmed its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 21.1% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 17,026 shares of the financial services provider's stock after selling 4,550 shares during the period. Highland Capital Management LLC's holdings in Charles Schwab were worth $1,553,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in shares of Charles Schwab by 15.4% in the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after purchasing an additional 19,817,022 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Charles Schwab by 12.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after buying an additional 8,954,248 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of Charles Schwab by 10.8% in the first quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock valued at $1,365,227,000 after acquiring an additional 1,700,384 shares during the period. Alliancebernstein L.P. grew its position in shares of Charles Schwab by 16.0% during the first quarter. Alliancebernstein L.P. now owns 17,115,759 shares of the financial services provider's stock worth $1,339,822,000 after acquiring an additional 2,355,309 shares during the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Charles Schwab by 5.0% in the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock valued at $1,220,107,000 after acquiring an additional 743,906 shares during the period. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Stock Up 1.5%

Shares of NYSE SCHW opened at $94.13 on Monday. The stock has a market capitalization of $170.87 billion, a price-to-earnings ratio of 25.30, a price-to-earnings-growth ratio of 0.91 and a beta of 0.97. The Charles Schwab Corporation has a 52 week low of $64.07 and a 52 week high of $99.59. The firm has a 50-day moving average price of $95.37 and a 200 day moving average price of $88.71. 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 issued its earnings results 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 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 firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 earnings per share. Equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 annualized dividend and a yield of 1.1%. Charles Schwab's dividend payout ratio is 29.03%.

Charles Schwab announced that its Board of Directors has approved a share repurchase plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on SCHW. Truist Financial set a $112.00 price target on shares of Charles Schwab in a research note on Thursday. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and raised their price target for the stock from $65.00 to $82.00 in a report on Monday, June 9th. Raymond James Financial reaffirmed an "outperform" rating and set a $99.00 price objective on shares of Charles Schwab in a research note on Friday, July 18th. Piper Sandler increased their price objective on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 15th. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on Charles Schwab from $114.00 to $113.00 and set a "buy" rating on the stock in a report on Tuesday, September 16th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus target price of $100.52.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total transaction of $4,851,552.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul V. Woolway sold 3,290 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $96.06, for a total transaction of $316,037.40. Following the completion of the sale, the insider owned 41,188 shares in the company, valued at $3,956,519.28. This represents a 7.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 267,128 shares of company stock worth $26,232,077. Insiders own 6.30% of the company's stock.

Charles Schwab Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.