Ally Financial Inc. Buys New Position in The Charles Schwab Corporation $SCHW

Key Points

• Ally Financial Inc. has acquired a new stake in The Charles Schwab Corporation by purchasing 27,000 shares valued at approximately $2.11 million.
• The Charles Schwab Corporation recently reported a 24.8% year-over-year increase in revenue, achieving $5.85 billion for the quarter.
• Charles Schwab's board has initiated a $20 billion stock repurchase plan, reflecting confidence in the company's valuation.

Ally Financial Inc. acquired a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 27,000 shares of the financial services provider's stock, valued at approximately $2,114,000.

A number of other hedge funds also recently made changes to their positions in SCHW. Vanguard Group Inc. increased its position 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 purchasing an additional 19,817,022 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Charles Schwab by 12.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after acquiring an additional 8,954,248 shares during the last quarter. Northern Trust Corp grew its holdings in Charles Schwab by 10.8% during the 1st quarter. Northern Trust Corp now owns 17,440,301 shares of the financial services provider's stock worth $1,365,227,000 after acquiring an additional 1,700,384 shares during the last quarter. Invesco Ltd. grew its holdings in 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 last quarter. Finally, Wellington Management Group LLP grew its holdings in Charles Schwab by 595.7% during the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after acquiring an additional 13,262,309 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Buying and Selling

In related news, insider Paul V. Woolway sold 10,129 shares of the business's stock in a transaction dated 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 transaction, the insider owned 39,154 shares of the company's stock, valued at $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jonathan S. Beatty sold 2,850 shares of the business's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $87.57, for a total value of $249,574.50. Following the transaction, the insider directly owned 15,219 shares of the company's stock, valued at approximately $1,332,727.83. The trade was a 15.77% decrease in their position. The disclosure for this sale can be found here. Insiders sold 241,693 shares of company stock worth $23,488,848 in the last ninety days. 6.30% of the stock is owned by company insiders.

Charles Schwab Stock Performance

Shares of Charles Schwab stock traded up $1.11 during trading on Tuesday, reaching $97.30. The company's stock had a trading volume of 7,720,954 shares, compared to its average volume of 8,098,677. The business's 50-day moving average price is $94.16 and its 200-day moving average price is $85.55. The firm has a market cap of $176.62 billion, a PE ratio of 26.16, a P/E/G ratio of 0.95 and a beta of 0.96. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. The company has a quick ratio of 0.55, 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 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. 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 19.30%. Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.73 earnings per share. Equities analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab declared that its board has initiated a stock 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 shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Charles Schwab Announces Dividend

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

Analysts Set New Price Targets

Several research analysts have recently issued reports on SCHW shares. Truist Financial raised their target price on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Piper Sandler lifted their price objective on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. TD Securities raised their target price on shares of Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a report on Tuesday, May 20th. Cowen restated a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Finally, Bank of America lifted their price objective on shares of Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $99.60.

Charles Schwab 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.