Charles Schwab Co. (SCHW) Sees Large Growth in Short Interest

Charles Schwab Co. (NYSE:SCHW) was the recipient of a significant increase in short interest in November. As of November 15th, there was short interest totalling 19,936,456 shares, an increase of 31.6% from the October 31st total of 15,150,476 shares. Based on an average daily trading volume, of 7,417,817 shares, the short-interest ratio is currently 2.7 days. Currently, 1.7% of the shares of the stock are sold short.

Charles Schwab stock opened at $44.80 on Monday. The company has a market capitalization of $60.50 billion, a PE ratio of 27.32, a P/E/G ratio of 1.12 and a beta of 1.48. Charles Schwab has a 1 year low of $42.01 and a 1 year high of $60.22. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.32.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.65. The business had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.58 billion. Charles Schwab had a net margin of 32.65% and a return on equity of 19.02%. The business’s revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.42 EPS. On average, research analysts forecast that Charles Schwab will post 2.44 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Friday, November 23rd. Stockholders of record on Friday, November 9th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.16%. The ex-dividend date was Thursday, November 8th. Charles Schwab’s dividend payout ratio (DPR) is 31.71%.

Charles Schwab announced that its board has initiated a share repurchase plan on Thursday, October 25th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase up to 1.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

In other Charles Schwab news, Chairman Charles R. Schwab sold 383,000 shares of Charles Schwab stock in a transaction dated Thursday, November 15th. The shares were sold at an average price of $46.97, for a total transaction of $17,989,510.00. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Jonathan M. Craig sold 2,629 shares of Charles Schwab stock in a transaction dated Monday, October 15th. The stock was sold at an average price of $48.84, for a total transaction of $128,400.36. The disclosure for this sale can be found here. Over the last three months, insiders sold 406,453 shares of company stock worth $19,107,379. Insiders own 11.50% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. LFA Lugano Financial Advisors SA purchased a new stake in shares of Charles Schwab in the 3rd quarter valued at approximately $111,000. Sapphire Star Partners LP acquired a new position in shares of Charles Schwab in the third quarter valued at approximately $123,000. Point72 Hong Kong Ltd acquired a new position in shares of Charles Schwab in the second quarter valued at approximately $134,000. Zions Bancorporation acquired a new position in shares of Charles Schwab in the third quarter valued at approximately $136,000. Finally, Sun Life Financial INC grew its holdings in shares of Charles Schwab by 1,041.8% in the second quarter. Sun Life Financial INC now owns 3,254 shares of the financial services provider’s stock valued at $166,000 after purchasing an additional 2,969 shares in the last quarter. 80.32% of the stock is currently owned by institutional investors and hedge funds.

SCHW has been the topic of a number of analyst reports. Morgan Stanley set a $70.00 target price on shares of Charles Schwab and gave the stock a “buy” rating in a research note on Tuesday, September 18th. Zacks Investment Research raised shares of Charles Schwab from a “hold” rating to a “buy” rating and set a $55.00 target price on the stock in a research note on Wednesday, October 3rd. Deutsche Bank raised shares of Charles Schwab from a “hold” rating to a “buy” rating and lifted their target price for the stock from $52.00 to $54.00 in a research note on Tuesday, October 30th. Goldman Sachs Group initiated coverage on shares of Charles Schwab in a research note on Friday. They set a “buy” rating and a $55.00 target price on the stock. Finally, Citigroup raised shares of Charles Schwab from a “sell” rating to a “neutral” rating in a research note on Monday, November 26th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and eleven have issued a buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $56.94.

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About Charles Schwab

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.

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