Stack Financial Management Inc Cuts Holdings in Charles Schwab Co. (SCHW)

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Stack Financial Management Inc decreased its position in Charles Schwab Co. (NYSE:SCHW) by 2.6% during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 413,453 shares of the financial services provider’s stock after selling 10,948 shares during the period. Charles Schwab comprises 2.2% of Stack Financial Management Inc’s portfolio, making the stock its 16th biggest position. Stack Financial Management Inc’s holdings in Charles Schwab were worth $20,321,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in SCHW. Pittenger & Anderson Inc. raised its stake in Charles Schwab by 1.2% in the 2nd quarter. Pittenger & Anderson Inc. now owns 164,316 shares of the financial services provider’s stock valued at $8,397,000 after acquiring an additional 1,995 shares during the period. Point72 Hong Kong Ltd bought a new stake in Charles Schwab in the 2nd quarter valued at $134,000. Argent Trust Co raised its stake in Charles Schwab by 55.8% in the 2nd quarter. Argent Trust Co now owns 26,167 shares of the financial services provider’s stock valued at $1,337,000 after acquiring an additional 9,377 shares during the period. Canada Pension Plan Investment Board raised its stake in Charles Schwab by 132.2% in the 2nd quarter. Canada Pension Plan Investment Board now owns 388,910 shares of the financial services provider’s stock valued at $19,873,000 after acquiring an additional 221,400 shares during the period. Finally, Keybank National Association OH raised its stake in Charles Schwab by 11.7% in the 2nd quarter. Keybank National Association OH now owns 26,074 shares of the financial services provider’s stock valued at $1,332,000 after acquiring an additional 2,733 shares during the period. Hedge funds and other institutional investors own 80.44% of the company’s stock.

Shares of SCHW traded down $0.09 during trading hours on Wednesday, hitting $47.67. 94,084 shares of the company were exchanged, compared to its average volume of 10,042,954. The firm has a market cap of $62.93 billion, a P/E ratio of 29.12, a price-to-earnings-growth ratio of 1.16 and a beta of 1.48. Charles Schwab Co. has a fifty-two week low of $42.01 and a fifty-two week high of $60.22. 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 earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.65. The company had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.58 billion. Charles Schwab had a return on equity of 19.46% and a net margin of 32.65%. Charles Schwab’s quarterly revenue was up 19.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.42 EPS. On average, research analysts predict that Charles Schwab Co. will post 2.45 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 23rd. Investors of record on Friday, November 9th will be paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 1.09%. The ex-dividend date is Thursday, November 8th. Charles Schwab’s dividend payout ratio (DPR) is presently 31.71%.

Charles Schwab declared that its board has approved a stock repurchase plan on Thursday, October 25th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

SCHW has been the topic of a number of research reports. Barclays decreased their price objective on Charles Schwab from $65.00 to $57.00 and set an “overweight” rating on the stock in a report on Monday, October 22nd. Jefferies Financial Group reaffirmed a “buy” rating and issued a $66.00 price objective on shares of Charles Schwab in a report on Monday, July 16th. Zacks Investment Research raised Charles Schwab from a “hold” rating to a “buy” rating and set a $55.00 price objective on the stock in a report on Wednesday, October 3rd. Morgan Stanley upped their price objective on Charles Schwab from $65.00 to $66.00 and gave the company a “buy” rating in a report on Tuesday, October 9th. Finally, Wolfe Research initiated coverage on Charles Schwab in a report on Tuesday, September 25th. They issued an “underperform” rating on the stock. Two research analysts have rated the stock with a sell rating, five have given a hold rating and ten have assigned a buy rating to the company. Charles Schwab presently has a consensus rating of “Hold” and a consensus target price of $57.73.

In related news, Director Christopher V. Dodds sold 15,718 shares of the firm’s stock in a transaction dated Thursday, August 16th. The stock was sold at an average price of $51.14, for a total value of $803,818.52. Following the sale, the director now directly owns 7,592 shares of the company’s stock, valued at $388,254.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jonathan M. Craig sold 2,629 shares of the stock in a transaction dated Monday, October 15th. The shares were sold at an average price of $48.84, for a total value of $128,400.36. The disclosure for this sale can be found here. Insiders sold 39,171 shares of company stock worth $1,921,687 over the last ninety days. 11.50% of the stock is currently owned by insiders.

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Charles Schwab Company Profile

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.

See Also: Float

Institutional Ownership by Quarter for Charles Schwab (NYSE:SCHW)

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