Charles Schwab Target of Unusually Large Options Trading (NYSE:SCHW)

The Charles Schwab Co. (NYSE:SCHW) saw some unusual options trading activity on Tuesday. Stock investors bought 43,705 call options on the stock. This represents an increase of 26% compared to the average daily volume of 34,748 call options.

Charles Schwab Trading Up 6.1 %

Charles Schwab stock traded up $4.14 during trading hours on Tuesday, reaching $71.96. 21,272,792 shares of the company’s stock were exchanged, compared to its average volume of 8,082,911. The firm has a market capitalization of $127.98 billion, a PE ratio of 30.51, a PEG ratio of 1.43 and a beta of 0.97. 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 firm’s 50 day simple moving average is $64.23 and its 200 day simple moving average is $69.49. Charles Schwab has a twelve month low of $48.66 and a twelve month high of $79.49.

Charles Schwab (NYSE:SCHW) last released its earnings results on Tuesday, October 15th. The financial services provider reported $0.77 EPS for the quarter, topping the consensus estimate of $0.75 by $0.02. Charles Schwab had a return on equity of 18.14% and a net margin of 26.30%. The business had revenue of $4.85 billion during the quarter, compared to analysts’ expectations of $4.78 billion. During the same quarter last year, the firm posted $0.77 earnings per share. The firm’s revenue was up 5.2% on a year-over-year basis. Research analysts predict that Charles Schwab will post 3.06 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 23rd. Investors of record on Friday, August 9th were given a dividend of $0.25 per share. The ex-dividend date 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 41.49%.

Insider Activity

In related news, Director Carolyn Schwab-Pomerantz sold 9,000 shares of Charles Schwab stock in a transaction that occurred on Friday, July 19th. The shares were sold at an average price of $61.96, for a total value of $557,640.00. Following the transaction, the director now directly owns 567,057 shares of the company’s stock, valued at $35,134,851.72. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. In related news, CEO Walter W. Bettinger purchased 25,000 shares of Charles Schwab stock in a transaction dated Wednesday, July 17th. The shares were bought at an average cost of $66.26 per share, for a total transaction of $1,656,500.00. Following the purchase, the chief executive officer now owns 827,377 shares in the company, valued at approximately $54,822,000.02. This trade represents a 0.00 % increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Carolyn Schwab-Pomerantz sold 9,000 shares of Charles Schwab stock in a transaction that occurred on Friday, July 19th. The shares were sold at an average price of $61.96, for a total transaction of $557,640.00. Following the sale, the director now directly owns 567,057 shares in the company, valued at $35,134,851.72. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 98,856 shares of company stock worth $6,398,604. 6.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of SCHW. Nelson Capital Management LLC increased its holdings in shares of Charles Schwab by 0.4% during the first quarter. Nelson Capital Management LLC now owns 37,726 shares of the financial services provider’s stock valued at $2,729,000 after acquiring an additional 141 shares in the last quarter. Abbrea Capital LLC increased its stake in Charles Schwab by 2.5% during the 1st quarter. Abbrea Capital LLC now owns 5,777 shares of the financial services provider’s stock valued at $418,000 after purchasing an additional 142 shares in the last quarter. Ironwood Financial llc raised its holdings in Charles Schwab by 1.6% during the first quarter. Ironwood Financial llc now owns 10,186 shares of the financial services provider’s stock worth $737,000 after buying an additional 160 shares during the last quarter. Ascent Wealth Partners LLC lifted its stake in shares of Charles Schwab by 0.7% in the second quarter. Ascent Wealth Partners LLC now owns 23,361 shares of the financial services provider’s stock valued at $1,721,000 after buying an additional 164 shares in the last quarter. Finally, Sutton Place Investors LLC grew its holdings in shares of Charles Schwab by 2.1% during the second quarter. Sutton Place Investors LLC now owns 8,086 shares of the financial services provider’s stock valued at $596,000 after buying an additional 167 shares during the last quarter. 84.38% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts have recently issued reports on SCHW shares. Cowen upped their price target on shares of Charles Schwab from $69.00 to $75.00 and gave the stock a “hold” rating in a report on Tuesday. The Goldman Sachs Group lowered their target price on Charles Schwab from $71.00 to $67.00 and set a “neutral” rating for the company in a report on Thursday, September 26th. Raymond James cut their price target on Charles Schwab from $76.00 to $73.00 in a research note on Tuesday. Morgan Stanley lowered their price objective on Charles Schwab from $70.00 to $68.00 and set an “equal weight” rating for the company in a research note on Monday, October 7th. Finally, JMP Securities cut their target price on shares of Charles Schwab from $85.00 to $82.00 and set a “market outperform” rating on the stock in a research report on Tuesday, July 23rd. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $71.82.

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.