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 (7,525) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious SCHW decrease. With 7,525 contracts traded and 554 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: SCHW170120P00038000 closed last at: $1.6 or 3% down. The stock increased 2.28% or $0.87 on November 23, hitting $39.11. About 11.09 million shares traded hands or 10.79% up from the average. Charles Schwab Corp (NYSE:SCHW) has risen 31.59% since April 22, 2016 and is uptrending. It has outperformed by 26.19% the S&P500.

Analysts await Charles Schwab Corp (NYSE:SCHW) to report earnings on January, 17. They expect $0.35 EPS, up 40.00% or $0.10 from last year’s $0.25 per share. SCHW’s profit will be $465.71 million for 27.94 P/E if the $0.35 EPS becomes a reality. After $0.34 actual EPS reported by Charles Schwab Corp for the previous quarter, Wall Street now forecasts 2.94% EPS growth.

Charles Schwab Corp (NYSE:SCHW) Ratings Coverage

Out of 14 analysts covering Charles Schwab (NYSE:SCHW), 12 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 86% are positive. $39.0 is the highest target while $28 is the lowest. The $33.94 average target is -13.22% below today’s ($39.11) stock price. Charles Schwab has been the topic of 43 analyst reports since August 11, 2015 according to StockzIntelligence Inc. Deutsche Bank maintained Charles Schwab Corp (NYSE:SCHW) on Friday, September 18 with “Buy” rating. The firm earned “Buy” rating on Thursday, June 16 by Deutsche Bank. The firm earned “Neutral” rating on Friday, April 15 by Citigroup. The stock of Charles Schwab Corp (NYSE:SCHW) earned “Buy” rating by Citigroup on Tuesday, November 22. The stock of Charles Schwab Corp (NYSE:SCHW) has “Overweight” rating given on Wednesday, August 26 by Barclays Capital. The company was upgraded on Tuesday, October 18 by SunTrust. The company was maintained on Friday, October 16 by Compass Point. Deutsche Bank maintained the stock with “Buy” rating in Wednesday, October 5 report. Bank of America downgraded the stock to “Neutral” rating in Wednesday, January 13 report. JP Morgan upgraded the shares of SCHW in a report on Tuesday, September 8 to “Overweight” rating.

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 decreased to 1.05 in Q2 2016. Its down 0.24, from 1.29 in 2016Q1. The ratio dropped, 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.
World Asset has invested 0.11% of its portfolio in Charles Schwab Corp (NYSE:SCHW). Cap Inv Advsr Limited Liability last reported 10,239 shares in the company. Grantham Mayo Van Otterloo Co Ltd Liability has 0.01% invested in the company for 67,447 shares. The Virginia-based Bb&T Securities Lc has invested 0.04% in Charles Schwab Corp (NYSE:SCHW). Sector Pension Board, a Quebec – Canada-based fund reported 227,949 shares. First Eagle Invest Mngmt Limited has invested 0% of its portfolio in Charles Schwab Corp (NYSE:SCHW). Seabridge Investment Advsr Ltd Co holds 0.5% of its portfolio in Charles Schwab Corp (NYSE:SCHW) for 78,645 shares. Moreover, Bowen Hanes And has 1.26% invested in Charles Schwab Corp (NYSE:SCHW) for 918,255 shares. Trillium Asset Mgmt Limited Liability reported 348,499 shares or 0.58% of all its holdings. Janney Management Ltd Liability Corporation holds 0.03% of its portfolio in Charles Schwab Corp (NYSE:SCHW) for 22,866 shares. Airain Limited last reported 309,630 shares in the company. Putnam Fl Mgmt, a Massachusetts-based fund reported 508,845 shares. United Automobile Association holds 0.11% or 1.26M shares in its portfolio. The Germany-based Deutsche Bank Ag has invested 0.1% in Charles Schwab Corp (NYSE:SCHW). Matrix Asset Advsr Inc New York has invested 1.79% of its portfolio in Charles Schwab Corp (NYSE:SCHW).

Insider Transactions: Since May 27, 2016, the stock had 1 insider purchase, and 19 selling transactions for $94.87 million net activity. 13,000 shares were sold by Murtagh Nigel J, worth $504,665. 14,000 shares were sold by Chandoha Marie A, worth $451,878. Clark Bernard J. sold 93,146 shares worth $3.29 million. Kallsen Terri R had sold 8,509 shares worth $267,213. Bettinger Walter W sold $19.36M worth of stock. SCHWAB CHARLES R sold $10.63M worth of stock or 300,000 shares. The insider MARTINETTO JOSEPH R sold $8.03 million.

The Charles Schwab Corporation is a savings and loan holding company. The company has a market cap of $52.04 billion. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. It has a 31.65 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 news for Charles Schwab Corp (NYSE:SCHW) were recently published by: Barrons.com, which released: “Charles Schwab-LPL Deal Unlikely” on November 22, 2016. Forbes.com‘s article titled: “Ex-Dividend Reminder: Capital One Financial, Charles Schwab and Kemper” and published on November 07, 2016 is yet another important article.

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