17,601 Shares in The Charles Schwab Corporation $SCHW Acquired by Lederer & Associates Investment Counsel CA

Key Points

• Lederer & Associates Investment Counsel CA initiated a 17,601-share position in Charles Schwab valued at approximately $1.62 million. Institutional investors and hedge funds collectively own 84.38% of SCHW.
• Charles Schwab exceeded quarterly expectations, reporting $1.62 in EPS and $7.07 billion in revenue, with revenue up 20.9% year over year. Shares recently traded near $107.65, close to their 52-week high of $109.32.
• The company declared a quarterly dividend of $0.32, equivalent to a 1.2% annualized yield, while analysts maintain a “Moderate Buy” consensus and a $121.17 average price target. Potential headwinds include insider selling and ongoing litigation involving Linqto.

Lederer & Associates Investment Counsel CA acquired a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 17,601 shares of the financial services provider's stock, valued at approximately $1,624,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in SCHW. State Street Corp grew its holdings in shares of Charles Schwab by 1.0% during the 3rd quarter. State Street Corp now owns 73,156,290 shares of the financial services provider's stock worth $6,984,231,000 after purchasing an additional 691,671 shares in the last quarter. Geode Capital Management LLC grew its stake in Charles Schwab by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 37,667,640 shares of the financial services provider's stock worth $3,747,646,000 after buying an additional 98,242 shares in the last quarter. Franklin Resources Inc. raised its position in shares of Charles Schwab by 0.3% in the 4th quarter. Franklin Resources Inc. now owns 30,184,369 shares of the financial services provider's stock valued at $3,015,720,000 after buying an additional 78,020 shares in the last quarter. Primecap Management Co. CA raised its position in shares of Charles Schwab by 9.7% in the 4th quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider's stock valued at $2,325,512,000 after buying an additional 2,066,884 shares in the last quarter. Finally, Fisher Asset Management LLC boosted its position in shares of Charles Schwab by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 21,818,514 shares of the financial services provider's stock worth $2,179,888,000 after acquiring an additional 171,926 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab News Roundup

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab’s Trading Activity Index rose modestly in July, while company data showed retail investors were net buyers during market volatility, including purchases of discounted artificial-intelligence stocks. Continued trading and client engagement could support transaction-related revenue and reinforce Schwab’s growth outlook. Schwab Trading Activity Index up modestly in July Schwab retail investor activity
• Neutral Sentiment: Director Paula Sneed sold 5,263 shares, while insider Nigel Murtagh sold a combined 26,675 shares for approximately $2.91 million. Murtagh’s transactions were conducted under a pre-arranged Rule 10b5-1 plan, making the sales less conclusive as a signal of management sentiment, although the activity may encourage some caution. SEC insider trading filing
• Negative Sentiment: Linqto said it is continuing litigation against Forge Global and Schwab and seeking damages and legal-fee reimbursement related to more than 13,000 customers. The claims could create legal, reputational, and financial uncertainty, though liability has not been established. Linqto litigation announcement
• Negative Sentiment: A report highlighted Schwab’s disclosed risks involving client cryptocurrency assets and possible delays in returning assets. The report describes a potential risk rather than evidence of imminent insolvency, but it may weigh on sentiment surrounding custody and operational controls. Schwab crypto-asset risk report

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $107.65 on Wednesday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.62 and a current ratio of 0.62. The Charles Schwab Corporation has a 52 week low of $83.96 and a 52 week high of $109.32. The firm has a market cap of $187.21 billion, a PE ratio of 19.57, a price-to-earnings-growth ratio of 0.82 and a beta of 0.76. The firm's fifty day moving average is $98.07 and its 200-day moving average is $95.69.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.06. The business had revenue of $7.07 billion during the quarter, compared to the consensus estimate of $6.90 billion. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.Charles Schwab's quarterly revenue was up 20.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.14 earnings per share. Sell-side analysts predict that The Charles Schwab Corporation will post 6.46 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, August 14th. Charles Schwab's payout ratio is 23.27%.

Insider Buying and Selling

In related news, General Counsel Peter J. Morgan III sold 6,952 shares of Charles Schwab stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $102.03, for a total value of $709,312.56. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Dennis Howard sold 28,000 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total value of $2,940,280.00. Following the completion of the sale, the insider owned 10,470 shares in the company, valued at $1,099,454.70. The trade was a 72.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 395,786 shares of company stock valued at $41,346,459. Corporate insiders own 6.30% of the company's stock.

Analyst Ratings Changes

SCHW has been the subject of several research analyst reports. BMO Capital Markets downgraded shares of Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price objective for the company. in a research report on Monday, July 20th. Zacks Research upgraded Charles Schwab from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 9th. TD Cowen lifted their price target on Charles Schwab from $108.00 to $109.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Piper Sandler set a $118.00 price target on Charles Schwab in a report on Tuesday, July 21st. Finally, Barclays upped their price objective on Charles Schwab from $122.00 to $125.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Charles Schwab has a consensus rating of "Moderate Buy" and a consensus price target of $121.17.

Charles Schwab Company Profile

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

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