The Charles Schwab Corporation $SCHW Shares Sold by Spectrum Asset Management Inc. NB CA

Key Points

• Spectrum Asset Management Inc. NB CA reduced its holdings in The Charles Schwab Corporation by 17.4% in the second quarter, resulting in ownership of 54,850 shares valued at approximately $5 million.
• Charles Schwab recently announced a quarterly dividend of $0.27 per share and initiated a $20 billion share buyback plan, indicating confidence in its stock value.
• Research analysts have set a consensus target price of $100.52 for Charles Schwab, with a rating of "Moderate Buy" reflecting a mix of ratings from strong buy to sell.

Spectrum Asset Management Inc. NB CA lessened its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 17.4% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 54,850 shares of the financial services provider's stock after selling 11,528 shares during the quarter. Charles Schwab accounts for 2.2% of Spectrum Asset Management Inc. NB CA's portfolio, making the stock its 16th largest position. Spectrum Asset Management Inc. NB CA's holdings in Charles Schwab were worth $5,005,000 as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in the business. Pine Haven Investment Counsel Inc grew its position in shares of 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 worth $3,813,000 after buying an additional 110 shares in the last quarter. Traveka Wealth LLC raised its holdings in Charles Schwab by 4.3% in the second quarter. Traveka Wealth LLC now owns 2,841 shares of the financial services provider's stock valued at $259,000 after acquiring an additional 117 shares in the last quarter. Bank of Stockton boosted its stake in Charles Schwab by 1.2% during the 2nd quarter. Bank of Stockton now owns 10,593 shares of the financial services provider's stock valued at $967,000 after acquiring an additional 123 shares during the last quarter. Sheaff Brock Investment Advisors LLC grew its holdings in Charles Schwab by 1.6% during the 1st 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 in the last quarter. Finally, HM Payson & Co. grew its holdings in Charles Schwab by 0.7% during the 1st 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 in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on SCHW shares. Piper Sandler upped their target price on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. William Blair cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Charles Schwab in a report on Saturday, September 27th. BMO Capital Markets assumed coverage on Charles Schwab in a research report on Friday, October 3rd. They issued an "outperform" rating and a $110.00 target price for the company. Finally, Wells Fargo & Company set a $102.00 price target on Charles Schwab and gave the company an "overweight" rating in a research report on Friday, July 18th. One research 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 issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $100.52.

Charles Schwab Price Performance

Shares of SCHW opened at $93.94 on Wednesday. The Charles Schwab Corporation has a 12 month low of $64.26 and a 12 month high of $99.59. 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 stock has a fifty day moving average price of $95.21 and a 200 day moving average price of $88.86. The company has a market cap of $170.53 billion, a P/E ratio of 25.25, a PEG ratio of 0.91 and a beta of 0.97.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.04. The company 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 revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.73 earnings per share. On average, research analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a $0.27 dividend. 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 presently 29.03%.

Charles Schwab declared that its Board of Directors has initiated a share 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 reacquire up to 11.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, General Counsel Peter J. Morgan III sold 50,016 shares of the stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total value of $4,851,552.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Nigel J. Murtagh sold 24,096 shares of Charles Schwab stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the sale, the insider directly owned 58,999 shares in the company, valued at $5,776,592.09. The trade was a 29.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 267,128 shares of company stock valued at $26,232,077 in the last ninety days. 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.

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