Thompson Investment Management Inc. Sells 23,953 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Thompson Investment Management Inc. reduced its stake in The Charles Schwab Corporation by 19.3%, selling 23,953 shares, which now represents about 1.3% of their portfolio.
• Charles Schwab recently announced a $20 billion share buyback plan as a sign of confidence in its valuation, and it also reported a quarterly dividend of $0.27 per share.
• Several analysts have adjusted their price targets for Charles Schwab, with JMP Securities raising theirs to $110.00, reflecting positive sentiment around the company's performance and outlook.

Thompson Investment Management Inc. trimmed its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 19.3% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 100,049 shares of the financial services provider's stock after selling 23,953 shares during the period. Charles Schwab comprises about 1.3% of Thompson Investment Management Inc.'s investment portfolio, making the stock its 25th largest holding. Thompson Investment Management Inc.'s holdings in Charles Schwab were worth $9,128,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of SCHW. Robertson Stephens Wealth Management LLC increased its position in shares of Charles Schwab by 3.5% during the second quarter. Robertson Stephens Wealth Management LLC now owns 11,391 shares of the financial services provider's stock worth $1,039,000 after acquiring an additional 384 shares in the last quarter. Cyndeo Wealth Partners LLC boosted its position in Charles Schwab by 13.0% during the 2nd quarter. Cyndeo Wealth Partners LLC now owns 4,252 shares of the financial services provider's stock worth $388,000 after acquiring an additional 489 shares during the last quarter. L. Roy Papp & Associates LLP acquired a new position in Charles Schwab during the second quarter worth $230,000. Birch Capital Management LLC grew its position in Charles Schwab by 0.6% in the second quarter. Birch Capital Management LLC now owns 73,153 shares of the financial services provider's stock valued at $6,674,000 after purchasing an additional 416 shares in the last quarter. Finally, Coordinated Financial Services Inc. bought a new position in Charles Schwab in the second quarter valued at $265,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Stock Up 0.2%

NYSE SCHW opened at $94.01 on Friday. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The company has a market cap of $170.65 billion, a price-to-earnings ratio of 25.27, a PEG ratio of 0.91 and a beta of 0.97. The company has a 50 day moving average of $95.04 and a 200-day moving average of $88.99. The Charles Schwab Corporation has a 1-year low of $65.88 and a 1-year high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company's quarterly revenue was up 24.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.73 EPS. On average, equities research analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Charles Schwab declared that its board has authorized a share buyback plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 11.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several research analysts recently commented on the company. JMP Securities increased their price target on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research report on Monday, July 21st. Barclays reissued an "overweight" rating and issued a $114.00 target price on shares of Charles Schwab in a research note on Wednesday. Morgan Stanley dropped their price target on shares of Charles Schwab to $130.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 1st. Raymond James Financial reissued an "outperform" rating and issued a $99.00 price objective on shares of Charles Schwab in a research report on Friday, July 18th. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Charles Schwab from $114.00 to $113.00 and set a "buy" rating on the stock in a research note on Tuesday, September 16th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Charles Schwab has a consensus rating of "Moderate Buy" and an average target price of $100.57.

Insider Activity

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the sale, the chairman owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. This represents a 22.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was 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 of the company's stock, valued at $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is owned by corporate insiders.

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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