Charles Schwab (NYSE:SCHW) General Counsel Peter Morgan III Sells 6,952 Shares

The Charles Schwab Corporation (NYSE:SCHW) General Counsel Peter Morgan III sold 6,952 shares of Charles Schwab stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total transaction of $709,312.56. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Charles Schwab Price Performance

Shares of SCHW opened at $106.17 on Wednesday. The firm has a market capitalization of $184.65 billion, a PE ratio of 19.30, a PEG ratio of 0.84 and a beta of 0.77. The company’s 50-day moving average is $94.46 and its 200-day moving average is $95.37. The Charles Schwab Corporation has a fifty-two week low of $83.96 and a fifty-two week high of $107.50. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.56 by $0.06. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The company had revenue of $7.07 billion during the quarter, compared to analysts’ expectations of $6.90 billion. During the same quarter last year, the company posted $1.14 EPS. Charles Schwab’s quarterly revenue was up 20.9% compared to the same quarter last year. Equities analysts forecast that The Charles Schwab Corporation will post 6.45 EPS for the current year.

Charles Schwab Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, August 14th. Charles Schwab’s payout ratio is currently 23.27%.

Charles Schwab News Roundup

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Planned $20 billion share repurchase: Charles Schwab reportedly plans to buy back $20 billion of its stock, a substantial capital-allocation commitment that could reduce shares outstanding, support earnings per share and signal management’s confidence in the company’s valuation and cash-generation outlook. Charles Schwab to buy back $20 billion of stock
• Positive Sentiment: Analysts continue to favor SCHW as a growth stock: Charles Schwab was included among analysts’ preferred growth names, reflecting confidence in demand trends and longer-term catalysts. The view is consistent with the company’s latest quarterly performance, which included earnings and revenue above consensus and 20.9% year-over-year revenue growth. Best Growth Stocks to Buy This Week
• Positive Sentiment: Retail investor sentiment is improving: Schwab executive James Kostulias said bullishness among retail traders is rising. Greater investor participation and trading activity could support Schwab’s brokerage-related revenue and asset-gathering trends. Charles Schwab executive discusses rising retail bullishness
• Positive Sentiment: Potential cryptocurrency-regulation tailwind: Schwab reportedly backed the CLARITY Act ahead of an August deadline. Clearer digital-asset rules could help established financial firms expand crypto-related products and services, although the legislation remains subject to the legislative process. Charles Schwab backs the CLARITY Act
• Neutral Sentiment: Commentary highlighting “three big reasons” to favor SCHW and a report on billionaire investor Andreas Halvorsen’s holdings add to positive market attention, but these opinions are not new company fundamentals or formal analyst actions. Three big reasons to favor Charles Schwab Andreas Halvorsen’s top picks
• Negative Sentiment: Several insiders sold shares, including General Counsel Peter J. Morgan III and executives Jonathan S. Beatty and Nigel J. Murtagh. The transactions were made under pre-arranged Rule 10b5-1 plans, reducing their significance as a bearish signal, but they may still create limited investor caution.

Hedge Funds Weigh In On Charles Schwab

A number of hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of Charles Schwab during the 4th quarter worth $1,994,189,000. Bank of New York Mellon Corp lifted its position in Charles Schwab by 22.9% during the first quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider’s stock worth $1,518,913,000 after purchasing an additional 3,009,884 shares during the period. Primecap Management Co. CA lifted its position in Charles Schwab by 9.7% during the fourth quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider’s stock worth $2,325,512,000 after purchasing an additional 2,066,884 shares during the period. Focus Partners Wealth grew its stake in Charles Schwab by 716.5% during the fourth quarter. Focus Partners Wealth now owns 2,101,463 shares of the financial services provider’s stock worth $209,948,000 after buying an additional 1,844,095 shares in the last quarter. Finally, Vaughan Nelson Investment Management L.P. acquired a new stake in Charles Schwab during the first quarter worth about $129,140,000. Institutional investors own 84.38% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Argus lifted their price target on Charles Schwab from $108.00 to $114.00 and gave the stock a “buy” rating in a report on Thursday, July 23rd. TD Cowen upped their price objective on Charles Schwab from $108.00 to $109.00 and gave the company a “buy” rating in a report on Friday, May 15th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Charles Schwab in a research report on Thursday, June 18th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Charles Schwab in a report on Wednesday, July 22nd. Finally, BMO Capital Markets downgraded shares of Charles Schwab from an “outperform” rating to a “market perform” rating and set a $105.00 price target on the stock. in a research note on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $119.94.

Charles Schwab Company Profile

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.