Charles R. Schwab, Co-Chairman of Schwab Charles Corp (NYSE:SCHW), recently sold a significant portion of the company’s common stock. According to a recent SEC filing, Schwab sold 17,225 shares on October 21, 2024, at an average price of $70.9047 per share, amounting to a total transaction value of approximately $1.22 million.
Following this transaction, Schwab still holds a substantial number of shares, with 60,602,146 shares remaining under indirect ownership by trust. Additionally, other indirect holdings include 30,641,981 shares by a limited partnership, 44,025 shares by 188 Corp, and 7,372,842.33 shares by his spouse as trustee.
The sale was executed in multiple trades, with prices ranging from $70.835 to $70.99, reflecting the weighted average sale price as reported in the filing.
In other recent news, Charles Schwab Corporation reported a strong third quarter for 2024, demonstrating a 5% year-over-year increase in revenue to $4.8 billion and adjusted earnings per share of $0.77. The company successfully reduced its supplemental funding by $9 billion, improving the adjusted Tier 1 Leverage ratio to 6.7%. Net new assets more than doubled compared to the same quarter last year, indicating robust client engagement. Financial institutions Jefferies, Goldman Sachs, Citi, and Barclays updated their outlooks on Charles Schwab, with Jefferies raising its price target to $84, Goldman Sachs maintaining at $74, Citi increasing to $75, and Barclays to $74. These adjustments were based on the company’s recent financial performance and strategic advancements. Charles Schwab anticipates a 2-3% revenue growth for the entirety of 2024 and plans to introduce new retail alternatives in the fourth quarter. However, due to potential macroeconomic uncertainties, the company has adjusted its net interest margin expectations for the end of 2025. Lastly, a leadership transition is underway, with CEO Walt Bettinger set to depart and Rick Wurster to assume the role in January 2024. These are the recent developments for Charles Schwab Corporation.
InvestingPro Insights
While Charles R. Schwab’s recent stock sale might raise eyebrows, it’s essential to consider the broader context of The Charles Schwab Corporation (NYSE:)’s financial health. According to InvestingPro data, the company boasts a substantial market capitalization of $129.9 billion, underscoring its significant presence in the financial services sector.
Notably, Schwab has demonstrated a strong commitment to shareholder returns, with an InvestingPro Tip highlighting that the company has maintained dividend payments for 36 consecutive years. This consistent dividend history, coupled with a current dividend yield of 1.41%, suggests a stable income stream for long-term investors despite the recent insider sale.
The company’s financial performance remains solid, with a revenue of $18.74 billion over the last twelve months and a robust gross profit margin of 96.78%. These figures indicate Schwab’s ability to generate substantial earnings from its core operations.
Moreover, another InvestingPro Tip reveals that 15 analysts have revised their earnings upwards for the upcoming period, signaling positive expectations for the company’s near-term financial performance. This optimism is further supported by the company’s profitability over the last twelve months and analysts’ predictions of continued profitability this year.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are more than 10 additional tips available for Schwab on the InvestingPro platform, providing a deeper understanding of the company’s financial outlook and potential investment opportunities.
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