IFM Investors Pty Ltd lifted its stake in Charles Schwab Co. (NYSE:SCHW) by 17.2% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 64,168 shares of the financial services provider’s stock after buying an additional 9,395 shares during the period. IFM Investors Pty Ltd’s holdings in Charles Schwab were worth $3,154,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds also recently modified their holdings of the company. LFA Lugano Financial Advisors SA acquired a new stake in shares of Charles Schwab in the 3rd quarter valued at $111,000. Acropolis Investment Management LLC acquired a new stake in shares of Charles Schwab in the 2nd quarter valued at $115,000. Point72 Hong Kong Ltd acquired a new stake in shares of Charles Schwab in the 2nd quarter valued at $134,000. Kaizen Advisory LLC increased its stake in shares of Charles Schwab by 157.6% in the 2nd quarter. Kaizen Advisory LLC now owns 2,980 shares of the financial services provider’s stock valued at $152,000 after buying an additional 1,823 shares during the period. Finally, Sun Life Financial INC increased its stake in shares of Charles Schwab by 1,041.8% in the 2nd quarter. Sun Life Financial INC now owns 3,254 shares of the financial services provider’s stock valued at $166,000 after buying an additional 2,969 shares during the period. 80.44% of the stock is owned by institutional investors and hedge funds.
Several research firms have recently commented on SCHW. Barclays lowered their target price on Charles Schwab from $65.00 to $57.00 and set an “overweight” rating for the company in a research note on Monday, October 22nd. Jefferies Financial Group restated a “buy” rating and issued a $66.00 price target on shares of Charles Schwab in a research report on Monday, July 16th. Zacks Investment Research upgraded Charles Schwab from a “hold” rating to a “buy” rating and set a $55.00 price target on the stock in a research report on Wednesday, October 3rd. Morgan Stanley raised their price target on Charles Schwab from $65.00 to $66.00 and gave the stock a “buy” rating in a research report on Tuesday, October 9th. Finally, Wolfe Research started coverage on Charles Schwab in a research report on Tuesday, September 25th. They issued an “underperform” rating on the stock. Two analysts have rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $57.73.
SCHW opened at $47.76 on Wednesday. Charles Schwab Co. has a 1 year low of $42.01 and a 1 year high of $60.22. The stock has a market capitalization of $62.93 billion, a price-to-earnings ratio of 29.12, a PEG ratio of 1.16 and a beta of 1.48. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.27 and a current ratio of 0.27.
Charles Schwab (NYSE:SCHW) last released its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.65. Charles Schwab had a return on equity of 19.46% and a net margin of 32.65%. The firm had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter last year, the business posted $0.42 EPS. The company’s revenue for the quarter was up 19.1% on a year-over-year basis. On average, analysts expect that Charles Schwab Co. will post 2.45 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, November 23rd. Investors of record on Friday, November 9th will be given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.09%. The ex-dividend date of this dividend is Thursday, November 8th. Charles Schwab’s dividend payout ratio is currently 31.71%.
Charles Schwab declared that its Board of Directors has authorized a share repurchase program on Thursday, October 25th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 1.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.
In related news, insider Marie A. Chandoha sold 8,424 shares of Charles Schwab stock in a transaction dated Tuesday, October 16th. The stock was sold at an average price of $48.01, for a total value of $404,436.24. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Marie A. Chandoha sold 12,400 shares of the business’s stock in a transaction that occurred on Monday, November 5th. The stock was sold at an average price of $47.18, for a total value of $585,032.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 39,171 shares of company stock worth $1,921,687. 11.50% of the stock is owned by company insiders.
About Charles Schwab
The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.
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