Charles Schwab Co. (NYSE:SCHW) Sees Significant Decline in Short Interest

Charles Schwab Co. (NYSE:SCHW) was the recipient of a large drop in short interest in October. As of October 31st, there was short interest totalling 15,450,000 shares, a drop of 28.2% from the September 30th total of 21,510,000 shares. Based on an average trading volume of 8,760,000 shares, the short-interest ratio is presently 1.8 days. Approximately 1.4% of the shares of the stock are short sold.

In other Charles Schwab news, Director Stephen T. Mclin sold 5,093 shares of the firm’s stock in a transaction dated Wednesday, August 21st. The stock was sold at an average price of $37.56, for a total value of $191,293.08. Following the sale, the director now owns 7,297 shares of the company’s stock, valued at approximately $274,075.32. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Jonathan M. Craig sold 3,740 shares of the firm’s stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $38.97, for a total value of $145,747.80. The disclosure for this sale can be found here. In the last ninety days, insiders sold 219,677 shares of company stock worth $8,993,241. Insiders own 10.90% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of SCHW. Venturi Wealth Management LLC bought a new stake in shares of Charles Schwab in the 3rd quarter worth approximately $26,000. FNY Investment Advisers LLC grew its position in shares of Charles Schwab by 133.3% in the 2nd quarter. FNY Investment Advisers LLC now owns 700 shares of the financial services provider’s stock worth $28,000 after buying an additional 400 shares during the last quarter. Flagship Harbor Advisors LLC grew its position in shares of Charles Schwab by 303.0% in the 3rd quarter. Flagship Harbor Advisors LLC now owns 802 shares of the financial services provider’s stock worth $33,000 after buying an additional 603 shares during the last quarter. Gradient Investments LLC grew its position in shares of Charles Schwab by 526.2% in the 3rd quarter. Gradient Investments LLC now owns 814 shares of the financial services provider’s stock worth $34,000 after buying an additional 684 shares during the last quarter. Finally, Glassman Wealth Services grew its position in shares of Charles Schwab by 51.0% in the 2nd quarter. Glassman Wealth Services now owns 1,098 shares of the financial services provider’s stock worth $44,000 after buying an additional 371 shares during the last quarter. Institutional investors and hedge funds own 79.64% of the company’s stock.

SCHW traded up $0.57 on Thursday, hitting $43.38. 5,357,988 shares of the company were exchanged, compared to its average volume of 8,025,966. The firm has a fifty day simple moving average of $40.10 and a two-hundred day simple moving average of $41.11. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.30 and a current ratio of 0.30. Charles Schwab has a 12 month low of $34.58 and a 12 month high of $48.23. The stock has a market capitalization of $56.51 billion, a PE ratio of 17.71, a price-to-earnings-growth ratio of 2.72 and a beta of 1.32.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings results on Tuesday, October 15th. The financial services provider reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.05. Charles Schwab had a return on equity of 20.81% and a net margin of 35.12%. The business had revenue of $2.71 billion for the quarter, compared to analyst estimates of $2.65 billion. During the same period last year, the company earned $0.65 EPS. Charles Schwab’s revenue for the quarter was up 5.1% compared to the same quarter last year. On average, equities analysts expect that Charles Schwab will post 2.73 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, November 22nd. Investors of record on Friday, November 8th will be given a dividend of $0.17 per share. The ex-dividend date is Thursday, November 7th. This represents a $0.68 annualized dividend and a yield of 1.57%. Charles Schwab’s payout ratio is 27.76%.

Several equities analysts have recently commented on SCHW shares. Sandler O’Neill set a $45.00 price objective on Charles Schwab and gave the company a “buy” rating in a research report on Tuesday, October 15th. Wells Fargo & Co reiterated a “hold” rating on shares of Charles Schwab in a research report on Tuesday, October 15th. Raymond James lowered Charles Schwab from an “outperform” rating to a “market perform” rating in a research report on Tuesday, November 5th. They noted that the move was a valuation call. Argus reiterated a “buy” rating and set a $52.00 price objective (down from $57.00) on shares of Charles Schwab in a research report on Wednesday, July 17th. Finally, ValuEngine upgraded Charles Schwab from a “sell” rating to a “hold” rating in a research report on Wednesday, September 4th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $44.38.

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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