Carolyn Schwab-Pomerantz, a director at Schwab Charles Corp (NYSE:SCHW), recently sold a significant portion of the company's common stock. According to a recent SEC filing, Schwab-Pomerantz executed sales totaling approximately $2.15 million on October 17, 2024.
The transactions included two separate sales. The first sale involved 5,400 shares at an average price of approximately $72.22, and 3,600 shares at the same price range, totaling around $649,964. The second sale consisted of 20,800 shares at an average price of $72.1353, amounting to approximately $1,500,414.
These sales were conducted under a Rule 10b5-1 trading plan, which was adopted on November 10, 2023. Following these transactions, Schwab-Pomerantz holds 1,614,313.6599 shares indirectly by trust and 551,329 shares indirectly by her spouse as trustee. Additionally, she has direct ownership of 8,162 shares and indirect ownership of 2,798 shares through an LLC.
In other recent news, Charles Schwab (NYSE:SCHW) Corp. reported impressive third-quarter results for 2024, including a 5% year-over-year revenue increase to $4.8 billion and adjusted earnings per share of $0.77. The company also managed to reduce its supplemental funding by $9 billion, which improved the adjusted Tier 1 Leverage ratio to 6.7%. Notably, net new assets more than doubled compared to the same quarter the previous year, indicating heightened client engagement.
Several financial institutions, including Jefferies, Goldman Sachs (NYSE:GS), Citi, and Barclays (LON:BARC), have offered their analysis on Charles Schwab's performance. Jefferies raised its stock price target to $84, citing a significant increase in deposits and a promising growth trajectory. Goldman Sachs maintained a $74 target, while Citi raised its target to $75 from $72, and Barclays increased it to $74 from $64.
Charles Schwab has unveiled plans for new retail alternatives in the fourth quarter of 2024 and expects a 2-3% revenue growth for the entire year. However, the company has adjusted its net interest margin expectations for the end of 2025 due to potential macroeconomic uncertainties. Lastly, the company is undergoing a leadership transition 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
As Carolyn Schwab-Pomerantz's recent stock sale draws attention, it's worth examining the current financial landscape of Charles Schwab Corp. According to InvestingPro data, the company boasts a substantial market capitalization of $130.6 billion, underscoring its significant presence in the financial services sector.
Despite the director's sale, Charles Schwab continues to demonstrate strong financial performance. The company's revenue for the last twelve months as of Q3 2024 stands at $18.74 billion, with an impressive gross profit margin of 96.78%. This high margin suggests efficient cost management and robust pricing power in its core business operations.
InvestingPro Tips highlight some positive aspects of Schwab's stock. The company has maintained dividend payments for 36 consecutive years, reflecting a commitment to shareholder returns and financial stability. Additionally, analysts predict that the company will remain profitable this year, which may provide some reassurance to investors in light of the recent insider sale.
It's also noteworthy that Schwab's stock has shown strong returns over the last month and three months, with price total returns of 13.14% and 15.94% respectively. This recent performance could indicate positive market sentiment towards the company, despite the director's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Charles Schwab Corp. These tips could provide valuable context for understanding the company's current position and future prospects in the competitive financial services landscape.
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