Schwab Kicks Up Buybacks (SCHW)

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The Charles Schwab Corporation (NASDAQ: SCHW) has authorized share repurchases of up to an additional $500 million of its common stock through open market or via privately negotiated transactions.

Schwab notes that as of December 31, 2007, it had 1.2 billion weighted average common and common equivalent shares outstanding.  Based on a buyback approval from April 25, 2007, Schwab has repurchased some 19 million shares for a total of $381 million.  Year-to-date, its has repurchased 16 million shares for $326 million.  In short, they have been involved in an accelerated buyback plan compared to share repurchases in 2007.

Including the $119 million remaining under the existing plan, Schwab now has authority to repurchase a total of $619 million in shares of its common stock.  With shares trading at roughly $20.00+ you would expect that to be a combined 30 million shares on a rounded basis at today’s prices.  It trades an average of more than 12 million shares per day.

Jon C. Ogg
March 13, 2008