Insider Selling: Charles Schwab (NYSE:SCHW) Chairman Sells $19,998,072.90 in Stock

The Charles Schwab Corporation (NYSE:SCHW) Chairman Walter Bettinger sold 176,210 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $113.49, for a total transaction of $19,998,072.90. Following the completion of the sale, the chairman directly owned 610,360 shares in the company, valued at approximately $69,269,756.40. The trade was a 22.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Charles Schwab Price Performance

SCHW traded down $2.72 during midday trading on Wednesday, reaching $109.55. 13,947,098 shares of the company’s stock were exchanged, compared to its average volume of 6,796,318. The business has a 50-day simple moving average of $102.72 and a two-hundred day simple moving average of $96.27. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $189.45 billion, a price-to-earnings ratio of 19.92, a price-to-earnings-growth ratio of 0.84 and a beta of 0.76. The Charles Schwab Corporation has a one year low of $83.96 and a one year high of $114.53.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.56 by $0.06. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.The firm had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same period in the prior year, the company posted $1.14 earnings per share. The business’s revenue for the quarter was up 20.9% compared to the same quarter last year. As a group, research analysts predict that The Charles Schwab Corporation will post 6.46 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. Shareholders of record on Friday, August 14th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, August 14th. Charles Schwab’s dividend payout ratio is currently 23.27%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Piper Sandler set a $118.00 target price on Charles Schwab in a report on Tuesday, July 21st. TD Cowen raised their price target on Charles Schwab from $108.00 to $109.00 and gave the company a “buy” rating in a report on Friday, May 15th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Wolfe Research reissued an “outperform” rating and issued a $127.00 price objective on shares of Charles Schwab in a research note on Tuesday, July 21st. Finally, Morgan Stanley increased their target price on Charles Schwab from $133.00 to $136.00 and gave the stock an “overweight” rating in a report on Monday, July 27th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Charles Schwab has an average rating of “Moderate Buy” and a consensus price target of $121.17.

Charles Schwab News Roundup

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

• Positive Sentiment: OneVest launched on Schwab’s digital account-opening API, including a flexible “headless” option for wealth-management firms. The integration could expand Schwab’s advisor-services technology ecosystem and make its platform more attractive to fintech partners. OneVest Goes Live on Schwab’s Digital Account Opening API
• Positive Sentiment: Recent brokerage-stock comparisons highlight Schwab’s scale, diversified revenue base and improving earnings profile. Its valuation is viewed as more reasonable than Interactive Brokers’ despite IBKR’s faster growth, reinforcing the potential appeal of SCHW to value-oriented investors. Schwab vs. Interactive Brokers: Which Brokerage Stock is a Better Buy?
• Neutral Sentiment: Commentary expects market volatility to rise later this year while the VIX remains historically subdued. Higher volatility could increase trading activity and options interest, but the articles primarily frame options as a trading strategy rather than a direct earnings catalyst for Schwab. Markets May Soon Turn Rocky. Time to Trade Schwab Stock.
• Negative Sentiment: Vanguard’s planned $4 billion acquisition of Altruist increases competitive pressure in digital wealth management, a market where Vanguard, Fidelity and Schwab are already competing for advisors and assets. Vanguard Takes On Fidelity, Charles Schwab With $4 Billion Altruist Deal
• Negative Sentiment: Investors appear to be taking profits after Schwab’s strong earnings, rally and recent one-year high. Because earnings and bank-sweep balances are sensitive to interest rates, changing rate expectations and bond-market moves are adding pressure. Heavy insider selling reported over the past six months may also weigh on sentiment, although CEO Richard Wurster was a buyer. Charles Schwab Shares Slip as Investors Weigh Rate Sensitivity and Recent Profit-Taking

Hedge Funds Weigh In On Charles Schwab

A number of hedge funds and other institutional investors have recently made changes to their positions in SCHW. Dogwood Wealth Management LLC increased its holdings in shares of Charles Schwab by 99.2% in the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 123 shares in the last quarter. Compass Financial Management LLC acquired a new stake in shares of Charles Schwab during the second quarter worth $27,000. Scarborough Advisors LLC acquired a new stake in shares of Charles Schwab during the first quarter worth $29,000. McIlrath & Eck LLC lifted its position in Charles Schwab by 143.2% in the 4th quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider’s stock valued at $32,000 after acquiring an additional 189 shares in the last quarter. Finally, Main Street Group LTD bought a new stake in Charles Schwab in the 1st quarter valued at $33,000. 84.38% of the stock is owned by institutional investors.

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.