Allen Investment Management LLC Cuts Stock Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Allen Investment Management cut its Charles Schwab stake by 4.5% in the fourth quarter, selling 264,329 shares and leaving it with 5.58 million shares valued at about $557.9 million.
• Charles Schwab reported better-than-expected Q1 earnings, posting $1.43 EPS on $6.48 billion in revenue, with revenue up 15.8% from a year earlier. The company also reiterated FY 2026 EPS guidance of 5.70 to 5.80.
• The company paid a quarterly dividend of $0.32 per share, or $1.28 annualized, for a yield of about 1.4%. Analysts remain moderately positive overall, with a consensus rating of “Moderate Buy” and an average target price of $114.30.

Allen Investment Management LLC trimmed its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 4.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 5,584,229 shares of the financial services provider's stock after selling 264,329 shares during the quarter. Charles Schwab accounts for approximately 6.2% of Allen Investment Management LLC's investment portfolio, making the stock its 3rd largest holding. Allen Investment Management LLC owned approximately 0.31% of Charles Schwab worth $557,920,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the stock. Brighton Jones LLC raised its holdings in Charles Schwab by 380.5% in the fourth quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock worth $1,794,000 after purchasing an additional 19,195 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in Charles Schwab by 21.6% in the second quarter. Sivia Capital Partners LLC now owns 4,553 shares of the financial services provider's stock worth $415,000 after purchasing an additional 809 shares during the last quarter. United Bank grew its holdings in Charles Schwab by 7.1% in the second quarter. United Bank now owns 16,053 shares of the financial services provider's stock worth $1,465,000 after purchasing an additional 1,070 shares during the last quarter. Nebula Research & Development LLC acquired a new position in shares of Charles Schwab during the second quarter worth $552,000. Finally, Main Street Financial Solutions LLC increased its position in shares of Charles Schwab by 4.7% during the second quarter. Main Street Financial Solutions LLC now owns 6,828 shares of the financial services provider's stock worth $623,000 after purchasing an additional 305 shares in the last quarter. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab News Summary

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

• Positive Sentiment: Recent coverage suggests Charles Schwab may still offer value after its pullback, with the article focusing on valuation metrics and questioning whether the selloff has created an attractive entry point for investors. Is It Time To Revisit Charles Schwab (SCHW) After This Year’s Share Price Pullback?
• Positive Sentiment: Market commentary says Charles Schwab has lagged peers over the past year, but analysts remain moderately bullish, which can support investor confidence despite the stock’s weaker relative performance. How Is Charles Schwab’s Stock Performance Compared to Other Financial Stocks?
• Neutral Sentiment: A Schwab Center article warning Americans about estate-planning pitfalls appears to be educational content rather than a direct business or earnings catalyst, so it is unlikely to move the stock by itself. Charles Schwab warns Americans on major estate planning problem

Charles Schwab Price Performance

Shares of NYSE SCHW opened at $88.64 on Tuesday. 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 stock has a market capitalization of $154.15 billion, a price-to-earnings ratio of 17.59, a PEG ratio of 0.82 and a beta of 0.80. The firm's 50 day simple moving average is $92.05 and its 200-day simple moving average is $95.56. The Charles Schwab Corporation has a 12 month low of $83.96 and a 12 month high of $107.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.39 by $0.04. The firm had revenue of $6.48 billion for the quarter, compared to the consensus estimate of $6.39 billion. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The firm's quarterly revenue was up 15.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Analysts expect that The Charles Schwab Corporation will post 6.12 EPS for the current year.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Friday, May 8th. Charles Schwab's dividend payout ratio is currently 25.40%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on SCHW. Keefe, Bruyette & Woods began coverage on Charles Schwab in a research note on Wednesday, April 8th. They set an "outperform" rating and a $110.00 price target on the stock. Piper Sandler increased their price objective on shares of Charles Schwab from $103.00 to $105.00 and gave the company a "neutral" rating in a research report on Friday, May 15th. Truist Financial lowered their target price on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. JPMorgan Chase & Co. boosted their target price on shares of Charles Schwab from $128.00 to $131.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Finally, Morgan Stanley decreased their price target on shares of Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a report on Friday, April 17th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $114.30.

Insider Activity

In other news, insider Nigel J. Murtagh sold 41,297 shares of the firm's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the completion of the transaction, the insider directly owned 57,972 shares in the company, valued at $5,739,228. This trade represents a 41.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul V. Woolway sold 7,941 shares of the stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $100.00, for a total value of $794,100.00. Following the transaction, the insider directly owned 29,866 shares in the company, valued at approximately $2,986,600. The trade was a 21.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 59,700 shares of company stock worth $5,889,131 over the last ninety days. Corporate insiders own 6.30% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.