The Charles Schwab Corporation (NYSE:SCHW) Shares Bought by AIA Group Ltd

Key Points

• AIA Group Ltd significantly increased its stake in The Charles Schwab Corporation by 239.6%, holding 12,550 shares worth approximately $982,000 as of the latest SEC filing.
• Several major institutional investors, including Vanguard Group Inc. and Primecap Management Co., have also boosted their stakes in Charles Schwab, indicating strong institutional interest in the company.
• Charles Schwab's Board authorized a $20 billion share buyback program, allowing the purchase of up to 11.6% of its outstanding shares, signaling confidence in the stock's valuation.

AIA Group Ltd boosted its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 239.6% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 12,550 shares of the financial services provider's stock after buying an additional 8,854 shares during the period. AIA Group Ltd's holdings in Charles Schwab were worth $982,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in shares of Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after acquiring an additional 19,817,022 shares during the period. Northern Trust Corp lifted its holdings in shares of Charles Schwab by 13.4% during the 4th quarter. Northern Trust Corp now owns 15,739,917 shares of the financial services provider's stock worth $1,164,911,000 after acquiring an additional 1,864,286 shares during the period. Invesco Ltd. lifted its holdings in shares of Charles Schwab by 5.0% during the 1st quarter. Invesco Ltd. now owns 15,586,450 shares of the financial services provider's stock worth $1,220,107,000 after acquiring an additional 743,906 shares during the period. Primecap Management Co. CA lifted its holdings in shares of Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after acquiring an additional 9,749,728 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Charles Schwab by 27.5% during 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 during the period. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Stock Performance

Shares of NYSE SCHW traded down $3.06 during midday trading on Wednesday, reaching $95.63. 12,455,199 shares of the stock were exchanged, compared to its average volume of 9,176,303. The firm has a market cap of $173.59 billion, a price-to-earnings ratio of 25.71, a PEG ratio of 0.95 and a beta of 0.96. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The firm has a 50-day simple moving average of $92.72 and a two-hundred day simple moving average of $84.69. The company has a quick ratio of 0.53, a current ratio of 0.55 and a debt-to-equity ratio of 0.47.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%. The company had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the firm posted $0.73 EPS. The firm's revenue for the quarter was up 24.8% on a year-over-year basis. As a group, analysts anticipate 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 repurchase plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be 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 of this dividend is Friday, August 8th. Charles Schwab's dividend payout ratio is 29.03%.

Insider Transactions at Charles Schwab

In other news, insider Paul V. Woolway sold 10,129 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total value of $911,711.29. Following the completion of the sale, the insider directly owned 39,154 shares of the company's stock, valued at approximately $3,524,251.54. This represents a 20.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the completion of the sale, the insider directly owned 58,999 shares of the company's stock, valued at $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 sold a total of 308,016 shares of company stock valued at $29,341,433 over the last three months. 6.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

SCHW has been the subject of several analyst reports. Bank of America raised their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Morgan Stanley raised their price target on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Truist Financial raised their price target on shares of Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Citigroup increased their price objective on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Finally, Redburn Atlantic upgraded shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $65.00 to $82.00 in a research report on Monday, June 9th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $99.35.

Charles Schwab Company Profile

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.