Insider Selling: Charles Schwab (NYSE:SCHW) Chairman Sells 176,210 Shares of Stock

The Charles Schwab Corporation (NYSE:SCHW) Chairman Walter Bettinger sold 176,210 shares of the firm’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $113.49, for a total value of $19,998,072.90. Following 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Charles Schwab Stock Performance

Shares of NYSE SCHW traded down $2.72 during mid-day trading on Wednesday, hitting $109.55. The stock had a trading volume of 13,947,098 shares, compared to its average volume of 6,796,318. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.64 and a current ratio of 0.64. The Charles Schwab Corporation has a twelve month low of $83.96 and a twelve month high of $114.53. The firm has a market cap of $189.45 billion, a PE ratio of 19.92, a PEG ratio of 0.84 and a beta of 0.76. The company has a 50 day moving average of $102.72 and a two-hundred day moving average of $96.27.

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, beating the consensus estimate of $1.56 by $0.06. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm had revenue of $7.07 billion during the quarter, compared to analysts’ expectations of $6.90 billion. During the same period in the previous year, the business posted $1.14 EPS. The business’s revenue was up 20.9% compared to the same quarter last year. Research analysts predict that The Charles Schwab Corporation will post 6.46 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

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

Analyst Ratings Changes

Several research analysts have recently commented on the stock. UBS Group set a $135.00 price objective on shares of Charles Schwab in a research note on Monday, August 3rd. BMO Capital Markets lowered 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. Barclays lifted their target price on Charles Schwab from $122.00 to $125.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 22nd. Citigroup reiterated a “market outperform” rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Charles Schwab in a research note on Thursday, June 18th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $121.17.

Key Headlines Impacting Charles Schwab

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 large investors have recently modified their holdings of the company. Bank of Nova Scotia bought a new stake in Charles Schwab in the 2nd quarter valued at $3,780,000. Geode Capital Management LLC lifted its stake in shares of Charles Schwab by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider’s stock valued at $3,747,646,000 after buying an additional 98,242 shares during the period. Swiss Life Asset Management Ltd grew its position in Charles Schwab by 4.2% during the fourth quarter. Swiss Life Asset Management Ltd now owns 407,179 shares of the financial services provider’s stock worth $40,681,000 after buying an additional 16,482 shares in the last quarter. Eurizon Capital SGR S.p.A. acquired a new position in Charles Schwab in the 4th quarter valued at approximately $35,233,000. Finally, Norges Bank acquired a new stake in shares of Charles Schwab during the 4th quarter worth approximately $1,994,189,000. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

About Charles Schwab

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.