WEALTHFRONT Corp Lowers Position in Charles Schwab Co. (SCHW)

WEALTHFRONT Corp decreased its position in Charles Schwab Co. (NYSE:SCHW) by 16.3% in the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 34,626 shares of the financial services provider’s stock after selling 6,743 shares during the period. WEALTHFRONT Corp’s holdings in Charles Schwab were worth $1,702,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. FMR LLC increased its position in shares of Charles Schwab by 13.7% during the second quarter. FMR LLC now owns 65,193,384 shares of the financial services provider’s stock worth $3,331,382,000 after purchasing an additional 7,868,551 shares in the last quarter. BlackRock Inc. increased its position in shares of Charles Schwab by 2.6% during the third quarter. BlackRock Inc. now owns 86,976,839 shares of the financial services provider’s stock worth $4,274,909,000 after purchasing an additional 2,179,682 shares in the last quarter. Nomura Holdings Inc. increased its position in shares of Charles Schwab by 365.3% in the 2nd quarter. Nomura Holdings Inc. now owns 1,674,691 shares of the financial services provider’s stock valued at $85,576,000 after acquiring an additional 1,314,740 shares during the period. Calamos Advisors LLC increased its position in shares of Charles Schwab by 693.1% in the 3rd quarter. Calamos Advisors LLC now owns 984,940 shares of the financial services provider’s stock valued at $48,410,000 after acquiring an additional 860,758 shares during the period. Finally, Bank of Montreal Can increased its position in shares of Charles Schwab by 69.1% in the 3rd quarter. Bank of Montreal Can now owns 1,777,473 shares of the financial services provider’s stock valued at $87,363,000 after acquiring an additional 726,546 shares during the period. Hedge funds and other institutional investors own 79.51% of the company’s stock.

Several equities analysts recently issued reports on SCHW shares. Morgan Stanley cut their target price on Charles Schwab from $66.00 to $60.00 and set a “buy” rating on the stock in a research report on Wednesday, November 14th. Zacks Investment Research downgraded Charles Schwab from a “buy” rating to a “hold” rating in a research report on Tuesday. UBS Group downgraded Charles Schwab from a “buy” rating to a “neutral” rating in a research report on Monday, November 19th. Deutsche Bank raised Charles Schwab from a “hold” rating to a “buy” rating and upped their target price for the company from $52.00 to $54.00 in a research report on Tuesday, October 30th. Finally, Raymond James raised Charles Schwab from a “market perform” rating to an “outperform” rating and set a $54.00 target price on the stock in a research report on Tuesday, October 30th. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, eight have given a hold rating and ten have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $56.94.

NYSE:SCHW opened at $42.85 on Friday. Charles Schwab Co. has a one year low of $41.13 and a one year high of $60.22. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.29 and a current ratio of 0.29. The firm has a market capitalization of $58.08 billion, a price-to-earnings ratio of 26.13, a price-to-earnings-growth ratio of 1.07 and a beta of 1.45.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.65 EPS for the quarter, meeting the consensus estimate of $0.65. Charles Schwab had a net margin of 32.65% and a return on equity of 19.02%. The company had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.58 billion. During the same period in the prior year, the company earned $0.42 earnings per share. The firm’s revenue was up 19.1% on a year-over-year basis. Sell-side analysts anticipate that Charles Schwab Co. will post 2.44 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which was paid on Friday, November 23rd. Shareholders of record on Friday, November 9th were issued a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 1.21%. The ex-dividend date was Thursday, November 8th. Charles Schwab’s payout ratio is 31.71%.

Charles Schwab announced that its board has approved a share buyback plan on Thursday, October 25th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 1.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its shares are undervalued.

In related news, EVP Terri R. Kallsen sold 4,913 shares of the company’s stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $46.09, for a total transaction of $226,440.17. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Charles R. Schwab sold 383,000 shares of the company’s stock in a transaction dated Thursday, November 15th. The stock was sold at an average price of $46.97, for a total transaction of $17,989,510.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 411,366 shares of company stock worth $19,333,819. 11.50% of the stock is owned by corporate 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.

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

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