Several insiders at Charles Schwab Corporation (SCHW, Financial), including CEO Walter W. Bettinger, have sold shares as the outlook for the company has begun to brighten. President and CEO Walter W. Bettinger sold 407,918 shares of on April 18, 2011, at an average price of $18.02. The total transaction amount is $7,350,683. The Executive Vice President of Shared Strategic Services John S. Clendening sold 10,000 shares, and the Executive Vice President of Investor Services Benjamin L. Brigeman sold 43,403 shares. Charles Schwab Corp. is a leading brokerage and banking company. It has a market cap of $21.55 billion; its shares were traded at around $17.88 with a P/E ratio of 31.3 and P/S ratio of 5.1. The dividend yield of Schwab Charles Corp. stocks is 1.3%. Schwab Charles Corp. had an annual average earnings growth of 9.3% over the past 10 years.
The Charles Schwab Corporation has had several positive occurrences of late. Its stock has been on an upward trend to the $18 range from the $12 range it hit in Sept. 2010. On April 15, it announced first-quarter net income earnings of $243 million, an increase from $119 million in the first quarter of 2010. Its net income per share was $0.20, doubled from $0.10 per share in the previous quarter. The improvement in earnings is predominately attributable to an increased client base which helped drive up its three main sources of revenue – net interest revenue, asset management and administration fees, and trading revenue.
The company has also agreed to acquire optionsXpress, an innovator in online options and futures trading that will expand its offerings to investors who trade more actively.
CEO Walt Bettinger commented, “Overall, we’ve had a quality start to 2011 from both a financial and client perspective. Our first quarter earnings reflected the operating leverage inherent in our business model, and our metrics remained strong. New brokerage account openings totaled 224,000, net new assets totaled $25.1 billion excluding a large clearing outflow, and total client assets reached a record $1.65 trillion at month-end March, up 10% from a year ago. We now serve 8.1 million active brokerage accounts, 719,000 banking accounts, and 1.44 million retirement plan participants.”
Schwab’s expects that its success with clients will continue to result in improved financial performance if interest rates remain flat, and significantly improve financial performance if interest rates begin to rise.
The Charles Schwab Corporation has had several positive occurrences of late. Its stock has been on an upward trend to the $18 range from the $12 range it hit in Sept. 2010. On April 15, it announced first-quarter net income earnings of $243 million, an increase from $119 million in the first quarter of 2010. Its net income per share was $0.20, doubled from $0.10 per share in the previous quarter. The improvement in earnings is predominately attributable to an increased client base which helped drive up its three main sources of revenue – net interest revenue, asset management and administration fees, and trading revenue.
The company has also agreed to acquire optionsXpress, an innovator in online options and futures trading that will expand its offerings to investors who trade more actively.
CEO Walt Bettinger commented, “Overall, we’ve had a quality start to 2011 from both a financial and client perspective. Our first quarter earnings reflected the operating leverage inherent in our business model, and our metrics remained strong. New brokerage account openings totaled 224,000, net new assets totaled $25.1 billion excluding a large clearing outflow, and total client assets reached a record $1.65 trillion at month-end March, up 10% from a year ago. We now serve 8.1 million active brokerage accounts, 719,000 banking accounts, and 1.44 million retirement plan participants.”
Schwab’s expects that its success with clients will continue to result in improved financial performance if interest rates remain flat, and significantly improve financial performance if interest rates begin to rise.
