Independent Advisor Alliance Lowers Stake in Charles Schwab Co. (SCHW)

Independent Advisor Alliance cut its stake in shares of Charles Schwab Co. (NYSE:SCHW) by 41.7% in the 1st quarter, HoldingsChannel.com reports. The institutional investor owned 7,008 shares of the financial services provider’s stock after selling 5,009 shares during the quarter. Independent Advisor Alliance’s holdings in Charles Schwab were worth $300,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Pinkerton Retirement Specialists LLC boosted its position in Charles Schwab by 6.6% during the 4th quarter. Pinkerton Retirement Specialists LLC now owns 30,548 shares of the financial services provider’s stock worth $1,269,000 after purchasing an additional 1,888 shares during the period. Private Advisor Group LLC boosted its position in Charles Schwab by 13.9% during the 4th quarter. Private Advisor Group LLC now owns 38,460 shares of the financial services provider’s stock worth $1,592,000 after purchasing an additional 4,680 shares during the period. Principal Financial Group Inc. boosted its position in Charles Schwab by 5.8% during the 4th quarter. Principal Financial Group Inc. now owns 3,541,087 shares of the financial services provider’s stock worth $147,062,000 after purchasing an additional 193,547 shares during the period. Mercer Global Advisors Inc. ADV purchased a new stake in Charles Schwab during the 1st quarter worth $375,000. Finally, American International Group Inc. boosted its position in Charles Schwab by 1.7% during the 4th quarter. American International Group Inc. now owns 478,762 shares of the financial services provider’s stock worth $19,883,000 after purchasing an additional 7,810 shares during the period. 79.73% of the stock is owned by institutional investors.

A number of brokerages recently weighed in on SCHW. Zacks Investment Research raised shares of Charles Schwab from a “hold” rating to a “buy” rating and set a $52.00 price objective for the company in a research report on Thursday, February 7th. UBS Group cut shares of Charles Schwab from a “neutral” rating to a “sell” rating and decreased their price objective for the company from $48.00 to $42.00 in a research report on Wednesday, February 20th. ValuEngine cut shares of Charles Schwab from a “hold” rating to a “sell” rating in a research report on Friday, February 22nd. Deutsche Bank decreased their price objective on shares of Charles Schwab from $54.00 to $53.00 and set a “buy” rating for the company in a research report on Friday, March 15th. Finally, Wells Fargo & Co decreased their price objective on shares of Charles Schwab from $48.00 to $47.00 and set a “market perform” rating for the company in a research report on Friday, April 5th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the company. Charles Schwab currently has a consensus rating of “Buy” and an average target price of $53.22.

Shares of Charles Schwab stock opened at $43.21 on Friday. The stock has a market capitalization of $57.69 billion, a PE ratio of 17.64, a P/E/G ratio of 1.98 and a beta of 1.33. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.36. Charles Schwab Co. has a 1 year low of $37.83 and a 1 year high of $60.22.

Charles Schwab (NYSE:SCHW) last issued its earnings results on Monday, April 15th. The financial services provider reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.03. The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.67 billion. Charles Schwab had a net margin of 35.27% and a return on equity of 20.47%. The company’s revenue for the quarter was up 13.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.55 EPS. Sell-side analysts forecast that Charles Schwab Co. will post 2.77 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 29th. Stockholders of record on Wednesday, May 15th will be paid a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, May 14th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.57%. Charles Schwab’s dividend payout ratio (DPR) is presently 27.76%.

Charles Schwab announced that its Board of Directors has initiated a share repurchase plan on Wednesday, January 30th that authorizes the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 6.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

In other news, EVP Terri R. Kallsen sold 16,346 shares of the company’s stock in a transaction dated Wednesday, March 6th. The shares were sold at an average price of $45.93, for a total value of $750,771.78. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Terri R. Kallsen sold 41,285 shares of the company’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $46.75, for a total transaction of $1,930,073.75. The disclosure for this sale can be found here. In the last 90 days, insiders sold 944,253 shares of company stock worth $43,146,209. Company insiders own 10.90% of the company’s stock.

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

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