Charles Schwab (NYSE:SCHW) Shares Gap Down After Insider Selling

The Charles Schwab Co. (NYSE:SCHW)’s stock price gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $75.07, but opened at $70.21. Charles Schwab shares last traded at $70.10, with a volume of 4,159,450 shares traded.

Specifically, insider Bernard J. Clark sold 77,431 shares of the stock in a transaction on Tuesday, May 28th. The stock was sold at an average price of $70.94, for a total value of $5,492,955.14. Following the completion of the transaction, the insider now owns 121,666 shares in the company, valued at $8,630,986.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In other Charles Schwab news, insider Bernard J. Clark sold 77,431 shares of the company’s stock in a transaction on Tuesday, May 28th. The stock was sold at an average price of $70.94, for a total value of $5,492,955.14. Following the sale, the insider now owns 121,666 shares of the company’s stock, valued at $8,630,986.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Carolyn Schwab-Pomerantz sold 7,482 shares of the company’s stock in a transaction on Thursday, April 18th. The shares were sold at an average price of $73.47, for a total value of $549,702.54. Following the completion of the sale, the director now directly owns 1,719,399 shares in the company, valued at approximately $126,324,244.53. The disclosure for this sale can be found here. Over the last quarter, insiders sold 568,709 shares of company stock worth $42,577,554. 6.60% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts recently commented on SCHW shares. Morgan Stanley dropped their price objective on Charles Schwab from $73.00 to $71.00 and set an “equal weight” rating for the company in a research report on Thursday, July 11th. JPMorgan Chase & Co. dropped their price objective on Charles Schwab from $89.00 to $81.00 and set an “overweight” rating for the company in a research report on Friday, May 31st. Piper Sandler lifted their price objective on Charles Schwab from $75.00 to $78.00 and gave the stock an “overweight” rating in a research report on Friday, April 12th. Jefferies Financial Group lifted their price target on Charles Schwab from $85.00 to $88.00 and gave the company a “buy” rating in a report on Monday, July 8th. Finally, Barclays lifted their price target on Charles Schwab from $72.00 to $77.00 and gave the company an “equal weight” rating in a report on Wednesday, July 10th. Three research analysts have rated the stock with a sell rating, four have assigned a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $77.75.

Charles Schwab Stock Down 6.7 %

The firm has a market capitalization of $124.43 billion, a price-to-earnings ratio of 29.33, a price-to-earnings-growth ratio of 1.16 and a beta of 0.99. The company has a current ratio of 0.42, a quick ratio of 0.42 and a debt-to-equity ratio of 0.69. The firm has a 50 day moving average price of $74.26 and a two-hundred day moving average price of $70.24.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings data on Tuesday, July 16th. The financial services provider reported $0.73 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.01. The business had revenue of $4.69 billion for the quarter, compared to analyst estimates of $4.68 billion. Charles Schwab had a return on equity of 19.25% and a net margin of 26.14%. The company’s revenue was up .7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.75 EPS. On average, equities analysts expect that The Charles Schwab Co. will post 3.19 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 24th. Investors of record on Friday, May 10th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.43%. The ex-dividend date was Thursday, May 9th. Charles Schwab’s dividend payout ratio (DPR) is presently 41.84%.

Hedge Funds Weigh In On Charles Schwab

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in shares of Charles Schwab by 0.9% in the 1st quarter. Vanguard Group Inc. now owns 120,963,133 shares of the financial services provider’s stock valued at $8,750,473,000 after purchasing an additional 1,042,823 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Charles Schwab by 4.2% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 72,306,560 shares of the financial services provider’s stock valued at $5,230,657,000 after purchasing an additional 2,946,327 shares in the last quarter. Massachusetts Financial Services Co. MA raised its position in shares of Charles Schwab by 4.1% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 30,994,967 shares of the financial services provider’s stock valued at $2,132,454,000 after purchasing an additional 1,219,015 shares in the last quarter. Fisher Asset Management LLC raised its position in shares of Charles Schwab by 1.6% in the 4th quarter. Fisher Asset Management LLC now owns 18,627,667 shares of the financial services provider’s stock valued at $1,281,584,000 after purchasing an additional 296,317 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of Charles Schwab in the 4th quarter valued at approximately $950,192,000. 84.38% of the stock is owned by institutional investors and hedge funds.

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.