AMF Tjanstepension AB Sells 83,630 Shares of The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• AMF Tjanstepension AB has reduced its stake in The Charles Schwab Corporation by 32.4%, selling 83,630 shares and leaving it with 174,100 shares worth approximately $13.6 million.
• Charles Schwab's stock received various analyst upgrades, with multiple firms raising their price targets, including TD Securities, which set a new target at $113.00.
• The company announced a $20 billion stock repurchase plan aimed at buying back up to 11.6% of its outstanding shares, signaling management's belief that the stock is undervalued.

AMF Tjanstepension AB decreased its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 32.4% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 174,100 shares of the financial services provider's stock after selling 83,630 shares during the quarter. AMF Tjanstepension AB's holdings in Charles Schwab were worth $13,635,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Sheaff Brock Investment Advisors LLC lifted its position in Charles Schwab by 1.6% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock valued at $625,000 after purchasing an additional 129 shares during the last quarter. HM Payson & Co. lifted its position in Charles Schwab by 0.7% during the first quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock valued at $1,509,000 after purchasing an additional 130 shares during the last quarter. Cornerstone Wealth Management LLC lifted its position in Charles Schwab by 2.1% during the first quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock valued at $513,000 after purchasing an additional 132 shares during the last quarter. Journey Strategic Wealth LLC lifted its position in Charles Schwab by 3.1% during the first quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock valued at $351,000 after purchasing an additional 135 shares during the last quarter. Finally, Premier Path Wealth Partners LLC lifted its position in Charles Schwab by 1.8% during the first quarter. Premier Path Wealth Partners LLC now owns 7,817 shares of the financial services provider's stock valued at $612,000 after purchasing an additional 140 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Jonathan M. Craig sold 47,500 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total transaction of $4,201,850.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, General Counsel Peter J. Morgan III sold 10,176 shares of the firm's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $87.39, for a total transaction of $889,280.64. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 308,016 shares of company stock worth $29,341,433. 6.30% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on SCHW. JPMorgan Chase & Co. increased their target price on shares of Charles Schwab from $92.00 to $95.00 and gave the company an "overweight" rating in a research note on Monday, April 21st. Piper Sandler increased their target price on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Cowen reissued a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their target price for the company from $65.00 to $82.00 in a research note on Monday, June 9th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $99.35.

Charles Schwab Trading Up 1.1%

SCHW stock traded up $1.06 during trading on Friday, hitting $97.05. The company had a trading volume of 5,031,212 shares, compared to its average volume of 9,189,867. The firm has a market capitalization of $176.34 billion, a P/E ratio of 26.09, a PEG ratio of 0.93 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 50 day simple moving average of $92.15 and a 200-day simple moving average of $84.38. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53.

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

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

Charles Schwab Dividend Announcement

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 of this dividend is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

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.