Charles Schwab Sees Unusually Large Options Volume (NYSE:SCHW)

The Charles Schwab Co. (NYSE:SCHW) was the recipient of unusually large options trading activity on Tuesday. Stock investors bought 33,328 call options on the company. This is an increase of approximately 28% compared to the typical daily volume of 26,070 call options.

Charles Schwab Stock Performance

SCHW traded up $2.07 during trading on Tuesday, hitting $83.24. The stock had a trading volume of 30,068,984 shares, compared to its average volume of 9,455,335. The firm has a market capitalization of $148.13 billion, a P/E ratio of 27.82, a PEG ratio of 1.02 and a beta of 0.99. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.47 and a current ratio of 0.47. The company’s 50-day moving average price is $77.99 and its 200 day moving average price is $71.99. Charles Schwab has a twelve month low of $61.01 and a twelve month high of $84.04.

Charles Schwab (NYSE:SCHW) last posted its earnings results on Tuesday, January 21st. The financial services provider reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $0.11. Charles Schwab had a net margin of 30.31% and a return on equity of 18.20%. The firm had revenue of $5.33 billion during the quarter, compared to the consensus estimate of $5.19 billion. During the same quarter in the prior year, the company earned $0.68 EPS. The company’s revenue was up 19.5% on a year-over-year basis. On average, equities research analysts forecast that Charles Schwab will post 4.18 EPS for the current fiscal year.

Charles Schwab Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, February 14th will be paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.30%. This is a boost from Charles Schwab’s previous quarterly dividend of $0.25. The ex-dividend date is Friday, February 14th. Charles Schwab’s dividend payout ratio (DPR) is presently 33.44%.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on SCHW shares. Bank of America lowered their target price on shares of Charles Schwab from $63.00 to $61.00 and set an “underperform” rating for the company in a report on Wednesday, October 16th. The Goldman Sachs Group raised their target price on shares of Charles Schwab from $67.00 to $74.00 and gave the stock a “neutral” rating in a report on Wednesday, October 16th. Redburn Partners decreased their price objective on shares of Charles Schwab from $70.00 to $68.00 and set a “sell” rating for the company in a report on Friday, January 17th. Wells Fargo & Company upgraded shares of Charles Schwab from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $89.00 to $93.00 in a report on Wednesday, January 22nd. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Charles Schwab from $98.00 to $105.00 and gave the company a “buy” rating in a report on Wednesday, January 22nd. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, Charles Schwab has an average rating of “Hold” and an average target price of $84.56.

Insider Transactions at Charles Schwab

In other Charles Schwab news, Director Christopher V. Dodds sold 9,284 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $81.43, for a total value of $755,996.12. Following the sale, the director now owns 442,807 shares in the company, valued at approximately $36,057,774.01. This represents a 2.05 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Arun Sarin sold 8,548 shares of the company’s stock in a transaction dated Thursday, January 23rd. The stock was sold at an average price of $81.82, for a total transaction of $699,397.36. Following the completion of the sale, the director now owns 18,617 shares in the company, valued at approximately $1,523,242.94. This trade represents a 31.47 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 47,514 shares of company stock valued at $3,859,731 in the last quarter. Insiders own 6.60% of the company’s stock.

Institutional Investors Weigh In On Charles Schwab

Hedge funds have recently added to or reduced their stakes in the stock. Washington Trust Advisors Inc. increased its holdings in shares of Charles Schwab by 62.6% during the third quarter. Washington Trust Advisors Inc. now owns 387 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 149 shares during the period. Capital Performance Advisors LLP acquired a new position in Charles Schwab during the third quarter worth about $25,000. Prospera Private Wealth LLC acquired a new position in Charles Schwab during the third quarter worth about $31,000. Hazlett Burt & Watson Inc. acquired a new position in Charles Schwab during the third quarter worth about $33,000. Finally, Planning Capital Management Corp acquired a new position in Charles Schwab during the third quarter worth about $33,000. 84.38% of the stock is currently owned by institutional investors.

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.