350,000 Shares in The Charles Schwab Corporation $SCHW Acquired by North Reef Capital Management LP

Key Points

• North Reef Capital Management disclosed a new position in Charles Schwab, buying 350,000 shares worth about $32.9 million in the first quarter. The stake makes SCHW one of the fund’s notable holdings.
• Charles Schwab reported better-than-expected quarterly results, with EPS of $1.62 versus estimates of $1.56 and revenue of $7.07 billion versus expectations of $6.90 billion. Revenue rose 20.9% year over year.
• The company also raised investor returns by declaring a quarterly dividend of $0.32 per share, and analysts remain broadly positive. Several firms reiterated or lifted targets, with the consensus rating at Moderate Buy and a consensus price target of $119.76.

North Reef Capital Management LP bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 350,000 shares of the financial services provider's stock, valued at approximately $32,893,000. Charles Schwab accounts for 1.1% of North Reef Capital Management LP's holdings, making the stock its 21st biggest holding.

Several other institutional investors have also added to or reduced their stakes in the business. 44 Wealth Management LLC lifted its stake in shares of Charles Schwab by 111.7% during the 1st quarter. 44 Wealth Management LLC now owns 16,548 shares of the financial services provider's stock valued at $1,555,000 after buying an additional 8,732 shares in the last quarter. Van Diest Capital LLC increased its stake in Charles Schwab by 151.0% in the 1st quarter. Van Diest Capital LLC now owns 27,296 shares of the financial services provider's stock worth $2,565,000 after buying an additional 16,419 shares in the last quarter. Aristotle Atlantic Partners LLC purchased a new stake in Charles Schwab in the 1st quarter worth $376,000. Waverly Advisors LLC raised its holdings in Charles Schwab by 41.9% during the first quarter. Waverly Advisors LLC now owns 127,577 shares of the financial services provider's stock valued at $11,990,000 after acquiring an additional 37,658 shares during the period. Finally, Cumberland Partners Ltd bought a new stake in Charles Schwab during the first quarter valued at about $1,159,000. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Price Performance

NYSE:SCHW opened at $101.92 on Friday. The firm has a market capitalization of $177.25 billion, a price-to-earnings ratio of 18.53, a PEG ratio of 0.83 and a beta of 0.77. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62. The business has a 50 day simple moving average of $93.93 and a 200-day simple moving average of $95.39. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $107.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.56 by $0.06. The company 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 revenue was up 20.9% on a year-over-year basis. During the same period last year, the company earned $1.14 earnings per share. Equities analysts forecast that The Charles Schwab Corporation will post 6.43 EPS for the current year.

Charles Schwab Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a dividend of $0.32 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.3%. Charles Schwab's payout ratio is currently 23.27%.

Charles Schwab News Roundup

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

• Positive Sentiment: Schwab announced a quarterly common stock dividend of $0.32 per share, along with preferred stock dividends, reinforcing its capital-return story for income-focused investors. Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends
• Positive Sentiment: Argus raised its price target on SCHW to $114 from $108 and kept a buy rating, signaling confidence in further upside. Argus raises Charles Schwab price target
• Positive Sentiment: Schwab was added to Zacks’ “Best Income Stocks to Buy” list, suggesting investors continue to view the company as an attractive income and quality financial-services name. Best Income Stocks to Buy for July 23rd
• Positive Sentiment: Recent coverage highlighted Schwab’s “dual beats” in its latest quarter, with earnings and revenue both coming in above expectations, adding to the bullish case after the July 21 report. Charles Schwab: Dual Beats And Attractive Preferreds
• Neutral Sentiment: Schwab also received media attention for its call for the CLARITY Act to pass, framing crypto regulation as a potential long-term industry catalyst, though the timing remains uncertain. Charles Schwab Calls CLARITY Act a Fundamental Catalyst

Insider Activity

In other Charles Schwab news, insider Jonathan S. Beatty sold 2,000 shares of the business's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $100.01, for a total transaction of $200,020.00. Following the completion of the transaction, the insider owned 13,738 shares in the company, valued at $1,373,937.38. The trade was a 12.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total value of $228,312.00. Following the completion of the sale, the director owned 177,508 shares in the company, valued at approximately $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,520 shares of company stock worth $622,392 over the last quarter. 6.30% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on SCHW shares. Keefe, Bruyette & Woods initiated coverage on Charles Schwab in a research note on Wednesday, April 8th. They issued an "outperform" rating and a $110.00 price objective for the company. Raymond James Financial reissued an "outperform" rating and set a $145.00 target price on shares of Charles Schwab in a research note on Wednesday. Weiss Ratings restated a "buy (b-)" rating on shares of Charles Schwab in a research note on Thursday, June 18th. UBS Group upped their price target on Charles Schwab from $122.00 to $128.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Charles Schwab in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $119.76.

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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