Jefferies Financial Group Weighs in on Charles Schwab Co.’s Q2 2019 Earnings (NYSE:SCHW)

Charles Schwab Co. (NYSE:SCHW) – Analysts at Jefferies Financial Group dropped their Q2 2019 earnings per share (EPS) estimates for Charles Schwab in a research note issued to investors on Monday, April 29th, according to Zacks Investment Research. Jefferies Financial Group analyst D. Fannon now expects that the financial services provider will post earnings of $0.68 per share for the quarter, down from their previous forecast of $0.69. Jefferies Financial Group also issued estimates for Charles Schwab’s Q3 2019 earnings at $0.72 EPS, Q4 2019 earnings at $0.74 EPS and FY2020 earnings at $3.05 EPS.

Several other brokerages have also issued reports on SCHW. ValuEngine upgraded shares of Charles Schwab from a “sell” rating to a “hold” rating in a research note on Tuesday, April 16th. Deutsche Bank reduced their price objective on shares of Charles Schwab from $54.00 to $53.00 and set a “buy” rating for the company in a research note on Friday, March 15th. Zacks Investment Research upgraded shares of Charles Schwab from a “hold” rating to a “buy” rating and set a $52.00 price objective for the company in a research note on Thursday, February 7th. Bank of America set a $50.00 price objective on shares of Charles Schwab and gave the company a “buy” rating in a research note on Tuesday, April 9th. Finally, Wells Fargo & Co reduced their price objective on shares of Charles Schwab from $48.00 to $47.00 and set a “market perform” rating for the company in a research note on Friday, April 5th. One analyst has rated the stock with a sell rating, five have given a hold rating and ten have assigned a buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $53.22.

Shares of SCHW stock traded down $0.53 during trading hours on Wednesday, hitting $43.21. 8,907,667 shares of the company were exchanged, compared to its average volume of 6,616,734. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 0.36. Charles Schwab has a 52-week low of $37.83 and a 52-week high of $60.22. The firm has a market cap of $57.06 billion, a P/E ratio of 17.64, a PEG ratio of 1.96 and a beta of 1.33.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings results on Monday, April 15th. The financial services provider reported $0.69 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.66 by $0.03. Charles Schwab had a net margin of 35.27% and a return on equity of 20.47%. The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.67 billion. During the same quarter last year, the business posted $0.55 EPS. Charles Schwab’s quarterly revenue was up 13.6% compared to the same quarter last year.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc lifted its stake in shares of Charles Schwab by 0.9% in the third quarter. Vanguard Group Inc now owns 88,586,138 shares of the financial services provider’s stock worth $4,354,008,000 after buying an additional 820,257 shares in the last quarter. Northern Trust Corp lifted its position in Charles Schwab by 0.3% during the first quarter. Northern Trust Corp now owns 16,708,657 shares of the financial services provider’s stock valued at $714,463,000 after purchasing an additional 52,865 shares during the period. Parnassus Investments CA lifted its position in Charles Schwab by 22.3% during the fourth quarter. Parnassus Investments CA now owns 15,623,778 shares of the financial services provider’s stock valued at $648,856,000 after purchasing an additional 2,850,678 shares during the period. Geode Capital Management LLC lifted its position in Charles Schwab by 4.7% during the first quarter. Geode Capital Management LLC now owns 14,263,792 shares of the financial services provider’s stock valued at $608,675,000 after purchasing an additional 636,547 shares during the period. Finally, Harris Associates L P lifted its position in Charles Schwab by 197.1% during the fourth quarter. Harris Associates L P now owns 13,940,097 shares of the financial services provider’s stock valued at $578,932,000 after purchasing an additional 9,248,471 shares during the period. 79.73% of the stock is owned by institutional investors.

In other news, Director Charles A. Ruffel purchased 2,500 shares of Charles Schwab stock in a transaction dated Friday, May 3rd. The stock was purchased at an average cost of $46.10 per share, for a total transaction of $115,250.00. Following the transaction, the director now directly owns 788 shares of the company’s stock, valued at $36,326.80. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Stephen T. Mclin sold 4,356 shares of the business’s stock in a transaction on Thursday, May 16th. The shares were sold at an average price of $43.85, for a total transaction of $191,010.60. Following the transaction, the director now owns 7,592 shares of the company’s stock, valued at $332,909.20. The disclosure for this sale can be found here. Insiders have sold a total of 944,253 shares of company stock valued at $43,146,209 over the last 90 days. Company insiders own 10.90% of the company’s stock.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 29th. Stockholders of record on Wednesday, May 15th will be given a dividend of $0.17 per share. The ex-dividend date is Tuesday, May 14th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.57%. Charles Schwab’s dividend payout ratio (DPR) is currently 27.76%.

Charles Schwab declared that its Board of Directors has authorized a share buyback plan on Wednesday, January 30th that authorizes the company to buyback $4.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 6.3% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

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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