RVW Wealth LLC Acquires New Shares in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• RVW Wealth LLC has acquired 4,529 shares in The Charles Schwab Corporation, valued at approximately $355,000, indicating growing institutional interest in the company.
• Charles Schwab announced a $20 billion share buyback program, which is typically viewed as a sign that the company's stock is undervalued.
• The financial services provider reported a 24.8% year-over-year increase in quarterly revenue, reaching $5.85 billion, alongside an EPS of $1.14 that surpassed analyst expectations.

RVW Wealth LLC acquired a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 4,529 shares of the financial services provider's stock, valued at approximately $355,000.

A number of other institutional investors also recently added to or reduced their stakes in the stock. Northern Trust Corp boosted its holdings in Charles Schwab by 13.4% during the fourth quarter. Northern Trust Corp now owns 15,739,917 shares of the financial services provider's stock valued at $1,164,911,000 after purchasing an additional 1,864,286 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Charles Schwab by 3.0% in the 4th quarter. Invesco Ltd. now owns 14,842,544 shares of the financial services provider's stock worth $1,098,497,000 after acquiring an additional 430,250 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Charles Schwab by 27.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,653,684 shares of the financial services provider's stock worth $862,489,000 after acquiring an additional 2,511,082 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Charles Schwab by 5.9% in the 1st quarter. Bank of New York Mellon Corp now owns 11,056,953 shares of the financial services provider's stock worth $865,538,000 after acquiring an additional 618,101 shares in the last quarter. Finally, Kovitz Investment Group Partners LLC boosted its holdings in shares of Charles Schwab by 354.5% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock worth $814,545,000 after acquiring an additional 8,584,173 shares in the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Charles Schwab Trading Down 2.2%

Shares of Charles Schwab stock traded down $2.16 on Friday, hitting $95.57. 9,790,479 shares of the company's stock traded hands, compared to its average volume of 8,649,078. The firm's 50-day moving average price is $91.28 and its two-hundred day moving average price is $83.66. The stock has a market capitalization of $173.65 billion, a PE ratio of 25.69, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The Charles Schwab Corporation has a one year low of $61.15 and a one year high of $99.59. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.53 and a quick ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. The company had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.73%. The business's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.73 EPS. On average, research analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its board has approved a share buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be given a dividend of $0.27 per share. The ex-dividend date is Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. Charles Schwab's payout ratio is presently 29.03%.

Insider Activity at Charles Schwab

In related news, Director Paula A. Sneed sold 8,647 shares of the company's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total value of $761,454.82. Following the completion of the sale, the director owned 105,654 shares in the company, valued at $9,303,891.24. This represents a 7.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Paul V. Woolway sold 3,290 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $90.95, for a total transaction of $299,225.50. Following the completion of the sale, the insider owned 35,864 shares of the company's stock, valued at approximately $3,261,830.80. This represents a 8.40% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 304,726 shares of company stock worth $29,025,396. 6.30% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several brokerages have recently commented on SCHW. Piper Sandler boosted their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. The Goldman Sachs Group raised Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a report on Friday, April 25th. Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the stock an "overweight" rating in a report on Friday, July 18th. JMP Securities boosted their target price on Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a report on Monday, July 21st. Finally, William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $99.35.

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.