Anson Funds Management LP Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• Anson Funds Management LP has acquired a new stake in The Charles Schwab Corporation, purchasing 10,000 shares valued at approximately $783,000.
• Charles Schwab's recent quarterly earnings report indicated a profit of $1.14 per share, exceeding estimates, with revenues up 24.8% year-over-year.
• The company's board approved a significant $20 billion stock buyback plan, allowing the repurchase of up to 11.6% of its outstanding shares, signaling confidence in its valuation.

Anson Funds Management LP acquired a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 10,000 shares of the financial services provider's stock, valued at approximately $783,000.

A number of other institutional investors have also recently made changes to their positions in the stock. Sheaff Brock Investment Advisors LLC boosted its stake in shares of 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 period. HM Payson & Co. raised its holdings in shares of 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 acquiring an additional 130 shares in the last quarter. Cornerstone Wealth Management LLC raised its holdings in shares of 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 acquiring an additional 132 shares in the last quarter. Journey Strategic Wealth LLC raised its holdings in shares of 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 acquiring an additional 135 shares in the last quarter. Finally, Meridian Wealth Management LLC raised its holdings in shares of Charles Schwab by 2.2% during the first quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock valued at $485,000 after acquiring an additional 136 shares in the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $95.6510 on Friday. The Charles Schwab Corporation has a 1-year low of $61.16 and a 1-year high of $99.59. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The business has a fifty day moving average price of $93.85 and a 200-day moving average price of $85.37. The company has a market capitalization of $173.63 billion, a PE ratio of 25.71, a PEG ratio of 0.94 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period last year, the company earned $0.73 earnings per share. The company's revenue was up 24.8% on a year-over-year basis. As a group, equities 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 stock repurchase plan on Thursday, July 24th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 11.6% of its shares through open market purchases. Shares buyback plans are usually 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. Stockholders of record on Friday, August 8th were issued a dividend of $0.27 per share. The ex-dividend date was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Insider Activity

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the sale, the chairman directly owned 590,734 shares of the company's stock, valued at $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jonathan S. Beatty sold 2,850 shares of the stock in a transaction on Friday, May 30th. The shares were sold at an average price of $87.57, for a total value of $249,574.50. Following the sale, the insider directly owned 15,219 shares in the company, valued at $1,332,727.83. This trade represents a 15.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 250,340 shares of company stock valued at $24,250,303. 6.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

SCHW has been the subject of a number of recent analyst reports. Bank of America upped their target price on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. Raymond James Financial restated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a report on Friday, July 18th. Truist Financial increased their price objective on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Citigroup increased their price objective on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Finally, Redburn Atlantic upgraded 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 report on Monday, June 9th. Sixteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $99.60.

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.

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