Valeo Financial Advisors LLC Buys 1,471,219 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Valeo Financial Advisors LLC significantly increased its stake in The Charles Schwab Corporation by purchasing 1,471,219 shares, marking a massive increase of 3,811.0% during the second quarter.
• Charles Schwab reported an EPS of $1.14 for the last quarter, exceeding estimates, with a revenue growth of 24.8% year-over-year, reaching $5.85 billion.
• The company announced a $20.00 billion share repurchase plan, indicating that its board believes the stock is undervalued, and it recently declared a quarterly dividend of $0.27 per share.

Valeo Financial Advisors LLC increased its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 3,811.0% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,509,824 shares of the financial services provider's stock after buying an additional 1,471,219 shares during the period. Charles Schwab comprises approximately 0.4% of Valeo Financial Advisors LLC's holdings, making the stock its 29th largest holding. Valeo Financial Advisors LLC owned about 0.08% of Charles Schwab worth $137,756,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of the stock. Atwood & Palmer Inc. purchased a new position in shares of Charles Schwab in the first quarter worth $25,000. Westside Investment Management Inc. increased its position in shares of Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after buying an additional 150 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its position 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 acquiring an additional 191 shares during the period. Stone House Investment Management LLC purchased a new position in Charles Schwab in the 1st quarter valued at about $31,000. Finally, Activest Wealth Management boosted its stake in shares of Charles Schwab by 6,650.0% in the first 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.

Insider Activity

In related news, insider Paul V. Woolway sold 3,290 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $96.06, for a total transaction of $316,037.40. Following the sale, the insider owned 41,188 shares of the company's stock, valued at $3,956,519.28. The trade was a 7.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Nigel J. Murtagh sold 24,096 shares of the firm'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 transaction of $2,359,239.36. Following the sale, the insider owned 58,999 shares of the company's stock, valued at $5,776,592.09. The trade was a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 267,128 shares of company stock worth $26,232,077 over the last 90 days. Insiders own 6.30% of the company's stock.

Charles Schwab Stock Up 1.5%

SCHW opened at $94.13 on Monday. The firm has a 50 day moving average price of $95.37 and a 200 day moving average price of $88.71. The Charles Schwab Corporation has a 1 year low of $64.07 and a 1 year high of $99.59. 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 company has a market cap of $170.87 billion, a PE ratio of 25.30, a price-to-earnings-growth ratio of 0.91 and a beta of 0.97.

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

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

Charles Schwab Dividend Announcement

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

Analyst Ratings Changes

Several brokerages have recently weighed in on SCHW. Raymond James Financial reissued an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research report on Friday, July 18th. Redburn Atlantic upgraded shares of Charles Schwab from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Citigroup raised 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, BMO Capital Markets began coverage on shares of Charles Schwab in a research report on Friday. They set an "outperform" rating and a $110.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $100.52.

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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