Is Selling Charles Schwab Corp Here a Winning Strategy? Option Traders Hate The Stock

 Is Selling Charles Schwab Corp Here a Winning Strategy? Option Traders Hate The Stock

In today’s session Charles Schwab Corp (SCHW) recorded an unusually high (1,046) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2016 put, expecting serious SCHW decrease. With 1,046 contracts traded and 24604 open interest for the Dec, 16 contract, it seems this is a quite bearish bet. The option with symbol: SCHW161216P00031000 closed last at: $1.15 or 17.9% down. About 2.57 million shares traded hands. Charles Schwab Corp (NYSE:SCHW) has risen 14.24% since March 15, 2016 and is uptrending. It has outperformed by 8.75% the S&P500.

Analysts await Charles Schwab Corp (NYSE:SCHW) to report earnings on October, 20. They expect $0.33 EPS, up 22.22% or $0.06 from last year’s $0.27 per share. SCHW’s profit will be $432.72 million for 24.39 P/E if the $0.33 EPS becomes a reality. After $0.30 actual EPS reported by Charles Schwab Corp for the previous quarter, Wall Street now forecasts 10.00% EPS growth.

Charles Schwab Corp (NYSE:SCHW) Ratings Coverage

Out of 14 analysts covering Charles Schwab (NYSE:SCHW), 11 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 79% are positive. $39.0 is the highest target while $28 is the lowest. The $33.94 average target is 5.44% above today’s ($32.19) stock price. Charles Schwab has been the topic of 42 analyst reports since August 11, 2015 according to StockzIntelligence Inc. On Thursday, June 16 the stock rating was maintained by Deutsche Bank with “Buy”. The stock of Charles Schwab Corp (NYSE:SCHW) earned “Buy” rating by Deutsche Bank on Friday, January 8. Deutsche Bank maintained Charles Schwab Corp (NYSE:SCHW) on Friday, October 16 with “Buy” rating. The stock of Charles Schwab Corp (NYSE:SCHW) earned “Buy” rating by Nomura on Monday, April 4. The stock has “Buy” rating given by UBS on Friday, October 16. The stock has “Buy” rating given by Deutsche Bank on Monday, July 18. The stock of Charles Schwab Corp (NYSE:SCHW) earned “Overweight” rating by Barclays Capital on Wednesday, August 26. The firm has “Neutral” rating by SunTrust given on Wednesday, March 23. The firm has “Buy” rating by Deutsche Bank given on Friday, September 18. The rating was maintained by Citigroup on Friday, April 15 with “Neutral”.

According to Zacks Investment Research, “Charles Schwab Corp. provides a full-service investing experience to customers through a clicks and mortar multi-dimensional, five channel offering of the Internet, branch offices, speech recognition, touch-tone telephone, e-mail and wireless technologies, multilingual and international services, and direct access to professionals day or night.”

Insitutional Activity: The institutional sentiment increased to 1.29 in 2016 Q2. Its up 0.04, from 1.25 in 2016Q1. The ratio improved, as 56 funds sold all Charles Schwab Corp shares owned while 214 reduced positions. 74 funds bought stakes while 275 increased positions. They now own 1.00 billion shares or 2.12% less from 1.02 billion shares in 2016Q1.
Farmers Merchants, a Nebraska-based fund reported 288 shares. Advisors Asset Mgmt holds 0.01% or 14,978 shares in its portfolio. Summit Asset Ltd Com has invested 0.19% of its portfolio in Charles Schwab Corp (NYSE:SCHW). Salem Invest Counselors has 0.31% invested in the company for 102,232 shares. Finemark Fincl Bank & has 20,122 shares for 0.06% of their US portfolio. Macquarie Gp holds 0% or 24,100 shares in its portfolio. Los Angeles Cap & Equity Research Inc owns 12,139 shares or 0% of their US portfolio. Bragg Financial Advsrs Incorporated last reported 0.04% of its portfolio in the stock. Sumitomo Life has 0.18% invested in the company for 52,217 shares. Dorsey And Whitney, a South Dakota-based fund reported 31,593 shares. Highlander Capital Management Limited Com has 0.02% invested in the company for 743 shares. Ladenburg Thalmann Fincl Ser has 24,741 shares for 0.01% of their US portfolio. Pillar Pacific Mngmt has 15,983 shares for 0.07% of their US portfolio. Cohen Capital Incorporated reported 243,686 shares or 1.79% of all its holdings. The United Kingdom-based Generation Mgmt Llp has invested 1.29% in Charles Schwab Corp (NYSE:SCHW).

Insider Transactions: Since April 20, 2016, the stock had 1 insider buy, and 5 insider sales for $1.91 million net activity. Another trade for 6,894 shares valued at $193,093 was sold by Kallsen Terri R. 2,500 shares were sold by Murtagh Nigel J, worth $74,303. Another trade for 50,950 shares valued at $1.52 million was sold by SCHWAB CHARLES R. 6,076 Charles Schwab Corp (NYSE:SCHW) shares with value of $194,432 were sold by Chandoha Marie A. Shares for $149,984 were bought by ADAMS JOHN K JR.

The Charles Schwab Corporation is a savings and loan holding company. The company has a market cap of $42.21 billion. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. It has a 26.05 P/E ratio. The Firm provides financial services to individuals and institutional clients through two divisions: Investor Services and Advisor Services.

SCHW Company Profile

The Charles Schwab Corporation (CSC), incorporated on November 25, 1986, is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. The Firm provides financial services to individuals and institutional clients through two divisions: Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services and other corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services as well as retirement business services. The Firm offers a range of products to address individuals’ varying investment and financial needs. The Company’s product offerings include brokerage, mutual funds, exchange-traded funds (ETFs), advice solutions, banking and trust. It offer an array of brokerage accounts with cash management capabilities. The Firm offers third-party mutual funds through the Mutual Fund Marketplace, including no-transaction fee mutual funds through the Mutual Fund OneSource service, which also includes proprietary mutual funds, plus mutual fund trading and clearing services to broker-dealers. CSC offers a range of ETFs, including proprietary and third-party ETFs available without a commission through Schwab ETF OneSource. The Company’s Advice solutions comprises managed portfolios of both proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and full-time portfolio management. The Company’s Banking services comprise checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans (First Mortgages), home equity loans and lines of credit (HELOCs) and Pledged Asset Lines (PALs). The Company’s Trust services include trust custody services, personal trust reporting services and administrative trustee services.

More important recent Charles Schwab Corp (NYSE:SCHW) news were published by: Investorplace.com which released: “Charles Schwab Corporation (SCHW) Stock Lower Despite Earnings Beat” on October 17, 2016, also Reuters.com published article titled: “BRIEF-Charles Schwab Corp posts Q3 earnings per share $0.35”, Benzinga.com published: “Charles Schwab Sets New Net Income Record In Q3” on October 17, 2016. More interesting news about Charles Schwab Corp (NYSE:SCHW) was released by: Time.com and their article: “Charles Schwab’s Roboadvisor Is Racking Up Assets Fast” with publication date: October 06, 2016.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.

Tags: , ,

Related posts

Leave a Comment