Turtle Creek Wealth Advisors LLC Takes $480,000 Position in The Charles Schwab Corporation $SCHW

Key Points

• Turtle Creek Wealth Advisors LLC has acquired a new stake in The Charles Schwab Corporation, purchasing 5,263 shares for approximately $480,000 during the 2nd quarter.
• Charles Schwab reported $1.31 earnings per share for the last quarter, surpassing analysts' expectations of $1.25, alongside a revenue increase of 26.6% year-over-year.
• The company also announced a $20 billion share buyback program, indicating a belief that its shares are currently undervalued.

Turtle Creek Wealth Advisors LLC bought a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 5,263 shares of the financial services provider's stock, valued at approximately $480,000.

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

Charles Schwab Price Performance

SCHW stock opened at $93.38 on Friday. The Charles Schwab Corporation has a 1 year low of $65.88 and a 1 year high of $99.59. The company has a market cap of $169.51 billion, a P/E ratio of 25.10, a PEG ratio of 0.89 and a beta of 0.97. The firm has a 50-day moving average of $94.74 and a 200 day moving average of $89.47. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, beating analysts' consensus estimates of $1.25 by $0.06. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The business had revenue of $6.14 billion during the quarter, compared to the consensus estimate of $5.93 billion. During the same quarter last year, the firm earned $0.71 earnings per share. The business's revenue for the quarter was up 26.6% on a year-over-year basis. On average, sell-side analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

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

Charles Schwab Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.2%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio is presently 29.03%.

Insiders Place Their Bets

In other news, General Counsel Peter J. Morgan III sold 50,016 shares of the company's stock in a transaction that occurred on 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 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 sale, the insider directly owned 41,188 shares of the company's stock, valued at $3,956,519.28. The trade was a 7.40% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 267,128 shares of company stock worth $26,232,077. 6.30% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on SCHW shares. Zacks Research cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 17th. Raymond James Financial restated an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a report on Friday, July 18th. Deutsche Bank Aktiengesellschaft cut 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. Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the company an "overweight" rating in a research report on Friday, July 18th. Finally, Morgan Stanley decreased their price objective on Charles Schwab to $130.00 and set an "overweight" rating for the company in a report on Wednesday, October 1st. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $101.85.

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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