Walter W. Bettinger Sells 173,876 Shares of The Charles Schwab Corporation (NYSE:SCHW) Stock

Key Points

• Walter W. Bettinger, Chairman of The Charles Schwab Corporation, sold 173,876 shares of stock at an average price of $98.84, resulting in a total transaction of approximately $17.19 million and decreasing his ownership position by 22.74%.
• Charles Schwab reported strong financial results with $1.14 earnings per share for the last quarter, exceeding consensus estimates, and a year-over-year revenue increase of 24.8%.
• The firm has initiated a $20 billion stock repurchase program and declared a quarterly dividend of $0.27, reflecting a 1.1% yield for investors.

The Charles Schwab Corporation (NYSE:SCHW - Get Free Report) Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the transaction, the chairman directly owned 590,734 shares in the company, valued at $58,388,148.56. This trade represents a 22.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Charles Schwab Price Performance

SCHW traded down $0.77 during trading on Thursday, hitting $97.80. The company's stock had a trading volume of 7,163,821 shares, compared to its average volume of 8,529,109. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $177.70 billion, a price-to-earnings ratio of 26.29, a price-to-earnings-growth ratio of 0.95 and a beta of 0.93. The firm's 50 day moving average price is $90.91 and its two-hundred day moving average price is $83.33. The Charles Schwab Corporation has a 12 month low of $61.15 and a 12 month high of $99.59.

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

Charles Schwab Announces Dividend

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 $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 1.1%. The ex-dividend date is Friday, August 8th. Charles Schwab's payout ratio is 29.03%.

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

Wall Street Analysts Forecast Growth

SCHW has been the topic of several research reports. Bank of America boosted their price objective on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a report on Monday, July 21st. Wells Fargo & Company set a $102.00 price target on Charles Schwab and gave the company an "overweight" rating in a research note on Friday, July 18th. UBS Group upped their price target on Charles Schwab from $95.00 to $96.00 and gave the company a "buy" rating in a report on Tuesday, April 22nd. Piper Sandler lifted their price objective on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. Finally, Raymond James Financial restated an "outperform" rating and issued a $99.00 target price on shares of Charles Schwab in a research note on Friday, July 18th. 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, Charles Schwab has an average rating of "Moderate Buy" and an average target price of $99.35.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Cary Street Partners Financial LLC acquired a new stake in Charles Schwab in the fourth quarter worth about $1,455,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its position 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 during the last quarter. Graham Capital Management L.P. increased its holdings in Charles Schwab by 248.3% in the fourth quarter. Graham Capital Management L.P. now owns 112,376 shares of the financial services provider's stock valued at $8,317,000 after purchasing an additional 80,112 shares during the last quarter. World Investment Advisors lifted its stake in Charles Schwab by 7.6% in the first quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock valued at $12,760,000 after buying an additional 11,505 shares during the period. Finally, State of Alaska Department of Revenue boosted its holdings in Charles Schwab by 17.2% during the first quarter. State of Alaska Department of Revenue now owns 199,687 shares of the financial services provider's stock worth $15,631,000 after buying an additional 29,255 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors.

About Charles Schwab

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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