Tran Capital Management L.P. Sells 12,887 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Tran Capital Management L.P. reduced its stake in The Charles Schwab Corporation by 7.2%, selling 12,887 shares in the second quarter, leaving them with 165,535 shares valued at approximately $15 million.
• Institutional investors currently own 84.38% of Charles Schwab's stock, with significant recent activity including purchases from several hedge funds and increased stakes by others.
• Charles Schwab's Board of Directors has authorized a $20 billion share buyback plan, indicating the belief that the company's stock is undervalued.

Tran Capital Management L.P. lessened its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 7.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 165,535 shares of the financial services provider's stock after selling 12,887 shares during the quarter. Charles Schwab makes up approximately 1.8% of Tran Capital Management L.P.'s holdings, making the stock its 21st biggest holding. Tran Capital Management L.P.'s holdings in Charles Schwab were worth $15,103,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Atwood & Palmer Inc. bought a new position in shares of Charles Schwab in the 1st quarter valued at about $25,000. Westside Investment Management Inc. boosted its stake in shares of Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 150 shares during the last quarter. CBIZ Investment Advisory Services LLC boosted its stake in shares of Charles Schwab by 97.9% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 191 shares during the last quarter. Stone House Investment Management LLC bought a new position in Charles Schwab during the 1st quarter worth approximately $31,000. Finally, Activest Wealth Management boosted its stake in Charles Schwab by 6,650.0% during the 1st quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock worth $32,000 after acquiring an additional 399 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Analyst Upgrades and Downgrades

SCHW has been the topic of several recent analyst reports. Truist Financial lifted their price objective on shares of Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Bank of America lifted their price objective on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research note on Monday, July 21st. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Charles Schwab from $114.00 to $113.00 and set a "buy" rating on the stock in a report on Tuesday, September 16th. Morgan Stanley raised their target price on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Finally, Keefe, Bruyette & Woods raised their target price on shares of Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. Sixteen analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $100.00.

Insider Activity

In other news, General Counsel Peter J. Morgan III sold 50,016 shares of the business's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of the business's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the sale, the insider directly owned 11,923 shares of the company's stock, valued at approximately $1,154,265.63. The trade was a 34.01% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 267,213 shares of company stock valued at $26,232,180. 6.30% of the stock is owned by company insiders.

Charles Schwab Trading Up 1.1%

SCHW stock opened at $94.27 on Friday. 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 company has a fifty day moving average price of $95.42 and a two-hundred day moving average price of $87.33. The Charles Schwab Corporation has a one year low of $62.41 and a one year high of $99.59. The stock has a market cap of $171.12 billion, a price-to-earnings ratio of 25.34, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96.

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

Charles Schwab Dividend Announcement

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

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

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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