UNIVEST FINANCIAL Corp Trims Stake in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• UNIVEST FINANCIAL Corp reduced its stake in The Charles Schwab Corporation by 6.8%, selling 9,406 shares in the 1st quarter, leaving it with a total of 128,120 shares valued at approximately $10 million.
• Charles Schwab reported a 24.8% year-over-year increase in revenue for the last quarter, accumulating $5.85 billion, and beating analysts' expectations for earnings per share by $0.04.
• The company's Board approved a $20 billion stock buyback plan, allowing it to repurchase up to 11.6% of its outstanding shares, indicating confidence in the stock's valuation.

UNIVEST FINANCIAL Corp trimmed its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 6.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 128,120 shares of the financial services provider's stock after selling 9,406 shares during the quarter. UNIVEST FINANCIAL Corp's holdings in Charles Schwab were worth $10,029,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Cary Street Partners Financial LLC purchased a new position in shares of Charles Schwab in the 4th quarter worth about $1,455,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of Charles Schwab by 6.2% in the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock worth $92,493,000 after purchasing an additional 68,858 shares in the last quarter. Graham Capital Management L.P. boosted its holdings in shares of Charles Schwab by 248.3% in the 4th quarter. Graham Capital Management L.P. now owns 112,376 shares of the financial services provider's stock worth $8,317,000 after purchasing an additional 80,112 shares in the last quarter. World Investment Advisors boosted its holdings in shares of Charles Schwab by 7.6% in the 1st quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock worth $12,760,000 after purchasing an additional 11,505 shares in the last quarter. Finally, State of Alaska Department of Revenue boosted its holdings in shares of Charles Schwab by 17.2% in the 1st quarter. State of Alaska Department of Revenue now owns 199,687 shares of the financial services provider's stock worth $15,631,000 after purchasing an additional 29,255 shares in the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab Price Performance

Shares of SCHW stock opened at $97.80 on Friday. The stock has a market cap of $177.70 billion, a price-to-earnings ratio of 26.29, a PEG ratio of 0.95 and a beta of 0.93. The business's fifty day moving average is $91.12 and its 200 day moving average is $83.50. The Charles Schwab Corporation has a twelve month low of $61.15 and a twelve month high of $99.59. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. The company had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the company earned $0.73 EPS. The firm's revenue for the quarter was up 24.8% on a year-over-year basis. Research analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be 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 is Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 10,129 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total transaction of $911,711.29. Following the completion of the transaction, the insider owned 39,154 shares of the company's stock, valued at $3,524,251.54. This trade represents a 20.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the sale, the chairman owned 590,734 shares in the company, valued at approximately $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 304,726 shares of company stock worth $29,025,396 over the last quarter. 6.30% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on SCHW shares. Raymond James Financial restated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a report on Friday, July 18th. Cowen restated a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the company an "overweight" rating in a report on Friday, July 18th. Citigroup increased their price objective on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Finally, Bank of America boosted their target price on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $99.35.

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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