1832 Asset Management L.P. Grows Stock Holdings in The Charles Schwab Corporation $SCHW

Key Points

• 1832 Asset Management L.P. increased its share holdings in The Charles Schwab Corporation by 332.2%, acquiring an additional 287,813 shares during the first quarter.
• Charles Schwab's latest quarterly earnings report indicated an EPS of $1.14, surpassing expectations and reflecting a 24.8% year-over-year revenue growth.
• The company's Board of Directors authorized a $20 billion stock buyback plan, reflecting confidence in the stock's valuation.

1832 Asset Management L.P. lifted its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 332.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 374,453 shares of the financial services provider's stock after purchasing an additional 287,813 shares during the period. 1832 Asset Management L.P.'s holdings in Charles Schwab were worth $29,312,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Compound Planning Inc. raised its position in Charles Schwab by 0.9% during the first quarter. Compound Planning Inc. now owns 15,346 shares of the financial services provider's stock worth $1,201,000 after acquiring an additional 144 shares during the last quarter. Ameriprise Financial Inc. raised its position in Charles Schwab by 0.4% during the first quarter. Ameriprise Financial Inc. now owns 9,762,382 shares of the financial services provider's stock worth $764,739,000 after acquiring an additional 39,232 shares during the last quarter. Norinchukin Bank The raised its position in Charles Schwab by 27.2% during the first quarter. Norinchukin Bank The now owns 85,656 shares of the financial services provider's stock worth $6,705,000 after acquiring an additional 18,292 shares during the last quarter. Monashee Investment Management LLC acquired a new position in Charles Schwab during the first quarter worth about $5,871,000. Finally, CW Advisors LLC raised its position in Charles Schwab by 583.1% during the first quarter. CW Advisors LLC now owns 20,357 shares of the financial services provider's stock worth $1,598,000 after acquiring an additional 17,377 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Trading Up 1.2%

Charles Schwab stock traded up $1.11 during trading on Tuesday, reaching $97.30. The company had a trading volume of 7,720,954 shares, compared to its average volume of 8,098,677. The Charles Schwab Corporation has a 12-month low of $61.16 and a 12-month high of $99.59. The stock's 50 day moving average price is $94.16 and its two-hundred day moving average price is $85.55. The firm has a market capitalization of $176.62 billion, a price-to-earnings ratio of 26.16, a PEG ratio of 0.95 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the previous year, the firm earned $0.73 earnings per share. Charles Schwab's revenue was up 24.8% compared to the same quarter last year. As a group, equities analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab announced that its board has initiated a stock repurchase program on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's payout ratio is presently 29.03%.

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 3,290 shares of the business's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $96.06, for a total value of $316,037.40. Following the completion of the sale, the insider directly owned 41,188 shares in the company, valued at approximately $3,956,519.28. The trade was a 7.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nigel J. Murtagh sold 24,096 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the sale, the insider owned 58,999 shares of the company's stock, valued at approximately $5,776,592.09. The trade was a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 241,693 shares of company stock valued at $23,488,848 in the last ninety days. 6.30% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of brokerages have issued reports on SCHW. Redburn Atlantic upgraded shares of Charles Schwab from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $65.00 to $82.00 in a research report on Monday, June 9th. Barclays lifted their target price on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Cowen restated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Citigroup lifted their price target on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Finally, Morgan Stanley lifted their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and a consensus price target of $99.60.

About Charles Schwab

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.