Beaconlight Capital LLC Invests $9.13 Million in Charles Schwab Co. (SCHW)

Beaconlight Capital LLC bought a new position in shares of Charles Schwab Co. (NYSE:SCHW) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 219,845 shares of the financial services provider’s stock, valued at approximately $9,130,000. Charles Schwab comprises 3.2% of Beaconlight Capital LLC’s investment portfolio, making the stock its 9th largest position.

Several other hedge funds have also made changes to their positions in the company. Laurel Wealth Advisors LLC bought a new position in Charles Schwab in the fourth quarter valued at about $31,000. First Personal Financial Services boosted its holdings in Charles Schwab by 51.9% in the fourth quarter. First Personal Financial Services now owns 825 shares of the financial services provider’s stock valued at $34,000 after acquiring an additional 282 shares during the last quarter. Proficio Capital Partners LLC boosted its holdings in Charles Schwab by 70.2% in the fourth quarter. Proficio Capital Partners LLC now owns 1,028 shares of the financial services provider’s stock valued at $43,000 after acquiring an additional 424 shares during the last quarter. Clearbridge LLC boosted its holdings in Charles Schwab by 75.1% in the fourth quarter. Clearbridge LLC now owns 1,096 shares of the financial services provider’s stock valued at $46,000 after acquiring an additional 470 shares during the last quarter. Finally, Semmax Financial Advisors Inc. bought a new position in Charles Schwab in the fourth quarter valued at about $47,000. Institutional investors own 78.42% of the company’s stock.

SCHW has been the topic of several recent research reports. UBS Group cut Charles Schwab from a “buy” rating to a “neutral” rating in a report on Monday, November 19th. Zacks Investment Research cut Charles Schwab from a “hold” rating to a “sell” rating in a report on Monday, January 14th. Morgan Stanley cut their target price on Charles Schwab from $60.00 to $55.00 and set an “overweight” rating on the stock in a research note on Friday, January 4th. Citigroup raised Charles Schwab from a “sell” rating to a “neutral” rating and set a $44.08 target price on the stock in a research note on Sunday, December 2nd. Finally, Wells Fargo & Co cut their target price on Charles Schwab from $53.00 to $44.00 and set a “market perform” rating on the stock in a research note on Friday, January 4th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have issued a buy rating to the stock. Charles Schwab has an average rating of “Hold” and a consensus price target of $53.22.

NYSE:SCHW opened at $45.30 on Friday. Charles Schwab Co. has a 1-year low of $37.83 and a 1-year high of $60.22. The company has a current ratio of 1.08, a quick ratio of 0.83 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $59.19 billion, a price-to-earnings ratio of 18.49, a P/E/G ratio of 1.02 and a beta of 1.34.

Charles Schwab (NYSE:SCHW) last released its earnings results on Wednesday, January 16th. The financial services provider reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.01. Charles Schwab had a return on equity of 20.11% and a net margin of 34.61%. The firm had revenue of $2.67 billion for the quarter, compared to analyst estimates of $2.64 billion. During the same quarter in the prior year, the firm posted $0.44 earnings per share. The company’s quarterly revenue was up 19.0% on a year-over-year basis. Research analysts anticipate that Charles Schwab Co. will post 2.81 EPS for the current year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 28th. Stockholders of record on Thursday, February 14th were given a dividend of $0.17 per share. The ex-dividend date of this dividend was Wednesday, February 13th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.50%. This is a positive change from Charles Schwab’s previous quarterly dividend of $0.13. Charles Schwab’s dividend payout ratio (DPR) is currently 27.76%.

Charles Schwab announced that its board has approved a share buyback program on Wednesday, January 30th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 6.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

In other news, EVP Terri R. Kallsen sold 16,346 shares of the firm’s stock in a transaction dated Wednesday, March 6th. The stock was sold at an average price of $45.93, for a total transaction of $750,771.78. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Walter W. Bettinger purchased 93,090 shares of the company’s stock in a transaction dated Monday, December 24th. The shares were acquired at an average cost of $39.09 per share, for a total transaction of $3,638,888.10. Following the transaction, the chief executive officer now owns 335,093 shares of the company’s stock, valued at $13,098,785.37. The disclosure for this purchase can be found here. In the last ninety days, insiders have sold 356,416 shares of company stock worth $16,652,483. 11.50% of the stock is currently owned by insiders.

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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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Institutional Ownership by Quarter for Charles Schwab (NYSE:SCHW)

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