US Bancorp DE Lowers Holdings in The Charles Schwab Corporation $SCHW

Key Points

• US Bancorp DE has reduced its holdings in The Charles Schwab Corporation by 4.6%, now owning 2,366,170 shares worth approximately $215.9 million.
• Insider trading activity saw significant sales with Paul V. Woolway selling 3,205 shares and Jonathan S. Beatty selling 6,144 shares, resulting in a decrease in their positions by 8.44% and 34.01%, respectively.
• Charles Schwab has approved a $20 billion stock buyback plan, signaling confidence in the company's stock, which has seen annual earnings per share growth of 24.8% year-over-year.

US Bancorp DE decreased its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 4.6% in the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 2,366,170 shares of the financial services provider's stock after selling 113,639 shares during the period. US Bancorp DE owned 0.13% of Charles Schwab worth $215,889,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of the company. Baxter Bros Inc. boosted its holdings in shares of Charles Schwab by 22.4% in the second quarter. Baxter Bros Inc. now owns 101,004 shares of the financial services provider's stock valued at $9,216,000 after purchasing an additional 18,510 shares during the period. Hager Investment Management Services LLC lifted its holdings in Charles Schwab by 4.8% during the second quarter. Hager Investment Management Services LLC now owns 30,015 shares of the financial services provider's stock worth $2,739,000 after buying an additional 1,362 shares during the period. Notis McConarty Edward purchased a new stake in Charles Schwab during the second quarter worth $1,085,000. Maryland State Retirement & Pension System lifted its holdings in Charles Schwab by 7.1% during the second quarter. Maryland State Retirement & Pension System now owns 82,951 shares of the financial services provider's stock worth $7,568,000 after buying an additional 5,473 shares during the period. Finally, Dempze Nancy E purchased a new stake in Charles Schwab during the second quarter worth $680,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insider Activity

In other news, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $93.33, for a total transaction of $299,122.65. Following the sale, the insider directly owned 34,778 shares in the company, valued at $3,245,830.74. This trade represents a 8.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the sale, the insider owned 11,923 shares in the company, valued at $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. 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 currently owned by corporate insiders.

Charles Schwab Price Performance

Shares of SCHW opened at $93.82 on Thursday. The business's 50-day moving average is $95.11 and its two-hundred day moving average is $88.89. The company has a market capitalization of $170.30 billion, a P/E ratio of 25.22, a P/E/G ratio of 0.91 and a beta of 0.97. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The Charles Schwab Corporation has a fifty-two week low of $64.97 and a fifty-two week high of $99.59.

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 for the quarter, topping the consensus estimate of $1.10 by $0.04. The company had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period last year, the firm earned $0.73 EPS. Research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab announced that its board has approved a share buyback 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 purchase up to 11.6% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were given a dividend of $0.27 per share. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Analyst Ratings Changes

A number of research firms have weighed in on SCHW. Zacks Research lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 17th. BMO Capital Markets initiated coverage on Charles Schwab in a report on Friday, October 3rd. They set an "outperform" rating and a $110.00 price objective for the company. Raymond James Financial reiterated an "outperform" rating and set a $99.00 price objective on shares of Charles Schwab in a report on Friday, July 18th. Citigroup increased their price objective on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, July 21st. Finally, William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Charles Schwab presently has a consensus rating of "Moderate Buy" and an average target price of $100.57.

Charles Schwab 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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