The Charles Schwab Co. (NYSE:SCHW) Brief Interest Update
Charles Schwab Co. (NYSE: SCHW – Get Rating) benefited from a sharp drop in short-term interest rates in October. As of October 31, there was short interest totaling 14,610,000 shares, down 21.5% from the total of 18,620,000 shares as of October 15. Based on an average trading volume of 7,670,000 shares, the short interest ratio is currently 1.9 days. Currently, 0.9% of the company’s shares are sold short.
Changes to analyst ratings
A number of brokerages have recently commented on SCHW. Morgan Stanley raised its price target on Charles Schwab from $99.00 to $104.00 and gave the stock an “overweight” rating in a Friday, Oct. 28 research report. Credit Suisse Group downgraded Charles Schwab from an ‘outperforming’ to a ‘neutral’ rating and raised its price target for the stock from $80.00 to $84.00 in a Tuesday research report November, 1st. Erste Group Bank upgraded Charles Schwab from a “hold” rating to a “buy” rating in a Wednesday, October 5 research report. UBS Group raised its price target on Charles Schwab from $82.00 to $85.00 and gave the company a “buy” rating in a Friday, September 16 research report. Finally, Citigroup began covering Charles Schwab in a research report on Tuesday, October 11. They issued a “neutral” rating and a price target of $83.00 on the stock. Seven investment analysts gave the stock a hold rating and ten gave the company a buy rating. According to MarketBeat, Charles Schwab currently has an average rating of “Moderate Buy” and an average price target of $91.83.
Charles Schwab Price Performance
SCHW shares opened at $78.36 on Friday. The company has a market capitalization of $142.29 billion, a PE ratio of 23.82, a P/E/G ratio of 0.88 and a beta of 1.00. The company has a current ratio of 0.41, a quick ratio of 0.41 and a debt ratio of 0.62. The company has a fifty-day simple moving average of $73.84 and a two-hundred-day simple moving average of $69.21. Charles Schwab has a 1-year low of $59.35 and a 1-year high of $96.24.
Charles Schwab (NYSE:SCHW – Get Rating) last announced his results on Monday, October 17. The financial services provider reported earnings per share of $1.10 for the quarter, beating consensus analyst estimates of $1.05 by $0.05. The company posted revenue of $5.50 billion in the quarter, versus analyst estimates of $5.42 billion. Charles Schwab had a net margin of 34.02% and a return on equity of 18.96%. The company’s quarterly revenue increased by 20.4% compared to the same quarter last year. During the same period of the previous year, the company achieved EPS of $0.84. On average, stock analysts expect Charles Schwab to post an EPS of 3.92 for the current year.
Charles Schwab dividend announcement
The company also recently announced a quarterly dividend, which will be paid on Friday, November 25. Shareholders of record on Friday, November 11 will receive a dividend of $0.22. The ex-dividend date is Wednesday, November 9. This represents an annualized dividend of $0.88 and a dividend yield of 1.12%. Charles Schwab’s dividend payout ratio (DPR) is 26.75%.
Insiders place their bets
In other news from Charles Schwab, Executive Vice Chairman Peter J. Morgan III sold 1,463 shares of the company in a trade that took place on Tuesday, November 8. The stock was sold at an average price of $80.04, for a total transaction of $117,098.52. Following the transaction, the executive vice president now owns 1,803 shares of the company, valued at approximately $144,312.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, accessible via this hyperlink. Separately, Chairman Charles R. Schwab sold 135,000 shares of the company in a transaction that took place on Monday, October 31. The stock was sold at an average price of $79.49, for a total value of $10,731,150.00. Following the sale, the president now directly owns 69,184,882 shares of the company, valued at approximately $5,499,506,270.18. The sale was disclosed in a legal filing with the SEC, accessible via the SEC’s website. Additionally, Executive Vice Chairman Peter J. Morgan III sold 1,463 shares of the company in a trade that took place on Tuesday, November 8. The stock was sold at an average price of $80.04, for a total value of $117,098.52. Following the completion of the sale, the executive vice president now directly owns 1,803 shares of the company, valued at $144,312.12. The disclosure of this sale can be found here. During the last quarter, insiders sold 337,193 shares of the company worth $26,802,462. Insiders of the company hold 7.50% of the shares of the company.
Institutional investors weigh in on Charles Schwab
Several hedge funds and other institutional investors have recently changed their stock holdings. IFG Advisory LLC increased its stake in Charles Schwab shares by 2.4% in the third quarter. IFG Advisory LLC now owns 6,175 shares of the financial services provider worth $443,000 after purchasing an additional 144 shares in the last quarter. First Dallas Securities Inc. increased its stake in Charles Schwab stock by 2.3% in the second quarter. First Dallas Securities Inc. now owns 6,700 shares of the financial services provider worth $423,000 after buying 150 additional shares in the last quarter. Desjardins Global Asset Management Inc. increased its stake in Charles Schwab shares by 3.0% in the third quarter. Desjardins Global Asset Management Inc. now owns 5,136 shares of the financial services provider worth $369,000 after buying an additional 150 shares last quarter. 1ST Source Bank increased its stake in Charles Schwab by 0.6% in the third quarter. 1ST Source Bank now owns 24,341 shares of the financial services provider worth $1,749,000 after buying an additional 150 shares last quarter. Finally, Atlas Private Wealth Management increased its stake in Charles Schwab by 4.1% in the 3rd quarter. Atlas Private Wealth Management now owns 3,829 shares of the financial services provider worth $275,000 after buying 151 additional shares last quarter. 82.45% of the shares are currently held by hedge funds and other institutional investors.
About Charles Schwab
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The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custodial and financial advisory services. The Company operates through two segments, Investor Services and Advisory Services. The Investor Services segment provides retail brokerage, investment advisory, banking and trust, pension plan and other corporate brokerage services; equity compensation plan sponsors maintaining full-service records for equity plans, stock options, restricted stock, performance stock and stock appreciation rights; and clearing services for retail investors and mutual funds, as well as compliance solutions.
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