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Unusual Put Option Trade in Charles Schwab Worth $652K
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On April 5, 2023 at 10:17:07 ET an unusually large $652.00K block of Put contracts in Schwab Charles (SCHW) was sold, with a strike price of $42.50 / share, expiring in 989 days (on December 19, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 1.39 sigmas above the mean, placing it in the 91.40 percentile of all recent large trades made in SCHW options.
This trade was first picked up on Fintel’s real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 70.31% Upside
As of March 30, 2023, the average one-year price target for Schwab Charles is $85.16. The forecasts range from a low of $58.58 to a high of $115.50. The average price target represents an increase of 70.31% from its latest reported closing price of $50.00.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Schwab Charles is $23,757MM, an increase of 14.43%. The projected annual non-GAAP EPS is $4.95.
What is the Fund Sentiment?
There are 2788 funds or institutions reporting positions in Schwab Charles. This is an increase of 105 owner(s) or 3.91% in the last quarter. Average portfolio weight of all funds dedicated to SCHW is 0.76%, an increase of 1.72%. Total shares owned by institutions increased in the last three months by 13.98% to 1,836,313K shares. The put/call ratio of SCHW is 0.97, indicating a bullish outlook.
What are Large Shareholders Doing?
Toronto Dominion Bank holds 225,995K shares representing 12.43% ownership of the company. In it’s prior filing, the firm reported owning 699K shares, representing an increase of 99.69%. The firm increased its portfolio allocation in SCHW by 31,400.78% over the last quarter.
Wellington Management Group Llp holds 79,847K shares representing 4.39% ownership of the company. In it’s prior filing, the firm reported owning 75,416K shares, representing an increase of 5.55%. The firm decreased its portfolio allocation in SCHW by 99.98% over the last quarter.
Dodge & Cox holds 77,429K shares representing 4.26% ownership of the company. In it’s prior filing, the firm reported owning 80,511K shares, representing a decrease of 3.98%. The firm increased its portfolio allocation in SCHW by 0.83% over the last quarter.
DODGX – Dodge & Cox Stock Fund holds 51,614K shares representing 2.84% ownership of the company. In it’s prior filing, the firm reported owning 53,181K shares, representing a decrease of 3.04%. The firm increased its portfolio allocation in SCHW by 0.79% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 46,920K shares representing 2.58% ownership of the company. In it’s prior filing, the firm reported owning 46,102K shares, representing an increase of 1.74%. The firm increased its portfolio allocation in SCHW by 8.88% over the last quarter.
Schwab Charles Declares $0.25 Dividend
On January 26, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of February 10, 2023 received the payment on February 24, 2023. Previously, the company paid $0.22 per share.
At the current share price of $50.00 / share, the stock’s dividend yield is 2.00%. Looking back five years and taking a sample every week, the average dividend yield has been 1.33%, the lowest has been 0.67%, and the highest has been 2.53%. The standard deviation of yields is 0.40 (n=237).
The current dividend yield is 1.66 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.25. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.39%, demonstrating that it has increased its dividend over time.
Charles Schwab Background Information
(This description is provided by the company.)
Charles Schwab believes in the power of investing to help individuals create a better tomorrow. The company has a history of challenging the status quo in its industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing its clients’ goals with passion and integrity.
This article originally appeared on Fintel
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