Charles Schwab Corp (SCHW:US) announced its quarterly results earlier this week. It reported $4.66B in revenue generating an EPS of $0.75. Analyst estimates had the revenue at $4.61B with an EPS of $0.71. The surprise showed in the market in the form of a 12% surge in stock price after the earnings announcements. 

The quarterly performance was a blow to many who were expecting worse numbers. Analysts had concerns over the debt on its balance sheet and a possible deposit outflow. This meant that the stock was under considerable pressure during the banking crisis in the first half of this year.

Revenue was down 9% YoY as many customers decided to reallocate their funds to investments that yielded higher returns. On the bright side, the daily outflows of cash have slowed down. It expects the cash to start growing again by the end of the year.

CFO Peter Crowford reiterated this when he said: “...we observed a continued and substantial deceleration in the daily pace of cash outflows”.

The incredible recovery of the stock has rewarded many politicians who had the investing acumen to buy during the banking crisis. Ro Khanna accumulated $23,000 to $170,000 worth of SCHW shares in the last 6 months. This also includes preferred shares at around the closing price of $25 per share mark that he acquired during this period. 

Josh Gottheimer, the Democrat Representative from New Jersey who also sits on the Financial Services Committee, bought $2,000 to $30,000 worth of stock in the last 3 months.

Michael McCaul Continues His Selling Spree

Michael McCaul has been selling SCHW for a long time now. In the last 12 months alone, he has sold between $985,000 to $2.25 million worth of stock. Some of these sales came near the 52-week lows, depicting how the Congressman didn’t have much faith in the stock when it was beaten down.

As of today, the stock is up about 50% from its 52-week low of $45, trading at a high of more than $67 in the early hours of the day.