Charles Schwab (NYSE:SCHW) Shares Gap Up After Earnings Beat

Shares of The Charles Schwab Co. (NYSE:SCHW) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $67.82, but opened at $72.60. Charles Schwab shares last traded at $72.74, with a volume of 4,987,136 shares changing hands.

The financial services provider reported $0.77 EPS for the quarter, beating the consensus estimate of $0.75 by $0.02. Charles Schwab had a net margin of 26.30% and a return on equity of 18.14%. The company had revenue of $4.85 billion during the quarter, compared to the consensus estimate of $4.78 billion. During the same quarter in the prior year, the company posted $0.77 earnings per share. The firm’s revenue for the quarter was up 5.2% on a year-over-year basis.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 23rd. Stockholders of record on Friday, August 9th were paid a $0.25 dividend. The ex-dividend date of this dividend was Friday, August 9th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.39%. Charles Schwab’s payout ratio is presently 41.84%.

Wall Street Analyst Weigh In

SCHW has been the subject of a number of research analyst reports. Raymond James decreased their price target on Charles Schwab from $76.00 to $73.00 in a research report on Tuesday. UBS Group decreased their target price on Charles Schwab from $91.00 to $90.00 and set a “buy” rating for the company in a research report on Tuesday, July 9th. Bank of America cut their price target on shares of Charles Schwab from $63.00 to $61.00 and set an “underperform” rating on the stock in a report on Wednesday. JPMorgan Chase & Co. raised their price objective on shares of Charles Schwab from $86.00 to $87.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Cowen boosted their target price on shares of Charles Schwab from $69.00 to $75.00 and gave the company a “hold” rating in a research note on Tuesday. Two analysts have rated the stock with a sell rating, nine have given a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $73.59.

Insiders Place Their Bets

In other news, Director Carolyn Schwab-Pomerantz sold 9,000 shares of the company’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $64.05, for a total transaction of $576,450.00. Following the sale, the director now directly owns 554,929 shares in the company, valued at $35,543,202.45. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. In other news, Director Carolyn Schwab-Pomerantz sold 9,000 shares of the company’s stock in a transaction on Tuesday, September 17th. The shares were sold at an average price of $64.05, for a total value of $576,450.00. Following the transaction, the director now owns 554,929 shares of the company’s stock, valued at approximately $35,543,202.45. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Chairman Charles R. Schwab sold 67,386 shares of Charles Schwab stock in a transaction on Wednesday, July 31st. The shares were sold at an average price of $65.11, for a total value of $4,387,502.46. Following the sale, the chairman now directly owns 60,619,371 shares of the company’s stock, valued at $3,946,927,245.81. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 98,856 shares of company stock worth $6,398,604 over the last 90 days. Corporate insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Charles Schwab

A number of hedge funds and other institutional investors have recently bought and sold shares of SCHW. Secure Asset Management LLC increased its position in shares of Charles Schwab by 20.1% during the 3rd quarter. Secure Asset Management LLC now owns 22,767 shares of the financial services provider’s stock valued at $1,476,000 after purchasing an additional 3,817 shares during the last quarter. Global Retirement Partners LLC increased its holdings in shares of Charles Schwab by 2.6% in the third quarter. Global Retirement Partners LLC now owns 27,882 shares of the financial services provider’s stock worth $1,807,000 after buying an additional 703 shares during the period. Good Life Advisors LLC lifted its position in Charles Schwab by 22.0% in the third quarter. Good Life Advisors LLC now owns 10,496 shares of the financial services provider’s stock valued at $680,000 after purchasing an additional 1,892 shares during the last quarter. Mezzasalma Advisors LLC boosted its stake in shares of Charles Schwab by 2.1% during the third quarter. Mezzasalma Advisors LLC now owns 83,549 shares of the financial services provider’s stock valued at $5,415,000 after purchasing an additional 1,755 shares during the period. Finally, FLC Capital Advisors boosted its stake in shares of Charles Schwab by 118.2% during the third quarter. FLC Capital Advisors now owns 13,376 shares of the financial services provider’s stock valued at $867,000 after purchasing an additional 7,245 shares during the period. Hedge funds and other institutional investors own 84.38% of the company’s stock.

Charles Schwab Price Performance

The firm’s fifty day moving average price is $64.61 and its 200-day moving average price is $69.51. The company has a quick ratio of 0.42, a current ratio of 0.42 and a debt-to-equity ratio of 0.65. The stock has a market cap of $128.11 billion, a P/E ratio of 30.16, a PEG ratio of 1.43 and a beta of 0.97.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.