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

The Charles Schwab Co. (NYSE:SCHW)’s stock price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.75 by $0.02. The firm had revenue of $4.85 billion for the quarter, compared to the consensus estimate of $4.78 billion. Charles Schwab had a net margin of 26.30% and a return on equity of 18.14%. The business’s revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.77 earnings per share.

Charles Schwab Dividend Announcement

The company 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 was Friday, August 9th. This represents a $1.00 annualized dividend and a dividend yield of 1.39%. Charles Schwab’s dividend payout ratio is presently 41.49%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. JMP Securities decreased their price objective on shares of Charles Schwab from $85.00 to $82.00 and set a “market outperform” rating for the company in a report on Tuesday, July 23rd. UBS Group decreased their price objective on shares of Charles Schwab from $91.00 to $90.00 and set a “buy” rating for the company in a report on Tuesday, July 9th. Cowen boosted their price objective on shares of Charles Schwab from $69.00 to $75.00 and gave the company a “hold” rating in a report on Tuesday. Bank of America decreased their price objective on shares of Charles Schwab from $72.00 to $66.00 and set an “underperform” rating for the company in a report on Wednesday, July 17th. Finally, Barclays decreased their price objective on shares of Charles Schwab from $77.00 to $68.00 and set an “equal weight” rating for the company in a report on Wednesday, July 17th. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, Charles Schwab currently has a consensus rating of “Hold” and an average target price of $71.82.

Insider Transactions at Charles Schwab

In other news, insider Paul V. Woolway sold 1,150 shares of the stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $65.20, for a total value of $74,980.00. Following the completion of the sale, the insider now directly owns 61,887 shares of the company’s stock, valued at $4,035,032.40. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, insider Paul V. Woolway sold 1,150 shares of the company’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $65.20, for a total transaction of $74,980.00. Following the completion of the transaction, the insider now owns 61,887 shares in the company, valued at approximately $4,035,032.40. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Charles R. Schwab sold 67,386 shares of the company’s stock in a transaction on Wednesday, July 31st. The stock was sold at an average price of $65.11, for a total transaction of $4,387,502.46. Following the transaction, the chairman now owns 60,619,371 shares of the company’s stock, valued at approximately $3,946,927,245.81. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 98,856 shares of company stock valued at $6,398,604 over the last three months. 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 modified their holdings of SCHW. M&G Plc bought a new position in Charles Schwab during the first quarter valued at $11,452,000. Teewinot Capital Advisers L.L.C. lifted its position in Charles Schwab by 9.0% during the second quarter. Teewinot Capital Advisers L.L.C. now owns 775,161 shares of the financial services provider’s stock valued at $57,122,000 after purchasing an additional 64,041 shares during the last quarter. Daiwa Securities Group Inc. lifted its position in Charles Schwab by 10.4% during the first quarter. Daiwa Securities Group Inc. now owns 190,597 shares of the financial services provider’s stock valued at $13,788,000 after purchasing an additional 17,925 shares during the last quarter. Wedmont Private Capital lifted its position in Charles Schwab by 12.2% during the first quarter. Wedmont Private Capital now owns 13,130 shares of the financial services provider’s stock valued at $949,000 after purchasing an additional 1,430 shares during the last quarter. Finally, Iowa State Bank lifted its position in Charles Schwab by 37.9% during the third quarter. Iowa State Bank now owns 28,476 shares of the financial services provider’s stock valued at $1,846,000 after purchasing an additional 7,829 shares during the last quarter. Institutional investors own 84.38% of the company’s stock.

Charles Schwab Stock Up 6.1 %

The company has a debt-to-equity ratio of 0.65, a current ratio of 0.42 and a quick ratio of 0.42. The company’s 50-day simple moving average is $64.42 and its 200 day simple moving average is $69.49. The firm has a market cap of $127.98 billion, a P/E ratio of 29.86, a price-to-earnings-growth ratio of 1.43 and a beta of 0.97.

Charles Schwab Company Profile

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.