Arkadios Wealth Advisors Grows Stake in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Arkadios Wealth Advisors significantly increased its holdings in The Charles Schwab Corporation by 380.8% during Q1, now owning 57,044 shares valued at approximately $4.47 million.
• The Charles Schwab Corporation reported $1.14 EPS in its latest quarterly earnings, exceeding analysts' expectations of $1.10, and its revenue rose by 24.8% compared to the previous year.
• Charles Schwab's board has approved a $20 billion stock buyback program, indicating the company's belief that its stock is undervalued.

Arkadios Wealth Advisors boosted its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 380.8% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 57,044 shares of the financial services provider's stock after buying an additional 45,180 shares during the period. Arkadios Wealth Advisors' holdings in Charles Schwab were worth $4,465,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Kovitz Investment Group Partners LLC lifted its stake in shares of Charles Schwab by 354.5% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock valued at $814,545,000 after purchasing an additional 8,584,173 shares during the last quarter. FMR LLC lifted its stake in shares of Charles Schwab by 69.4% in the 4th quarter. FMR LLC now owns 9,700,013 shares of the financial services provider's stock valued at $717,898,000 after purchasing an additional 3,974,940 shares during the last quarter. Marshall Wace LLP lifted its stake in shares of Charles Schwab by 742.0% in the 4th quarter. Marshall Wace LLP now owns 4,181,202 shares of the financial services provider's stock valued at $309,451,000 after purchasing an additional 3,684,640 shares during the last quarter. PointState Capital LP acquired a new position in shares of Charles Schwab in the 4th quarter valued at $237,280,000. Finally, Farallon Capital Management LLC acquired a new position in shares of Charles Schwab in the 4th quarter valued at $234,538,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Buying and Selling

In other Charles Schwab news, insider Nigel J. Murtagh sold 24,096 shares of the stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the sale, the insider owned 58,999 shares of the company's stock, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Paula A. Sneed sold 8,647 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total value of $761,454.82. Following the completion of the sale, the director directly owned 105,654 shares in the company, valued at $9,303,891.24. This represents a 7.57% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 304,726 shares of company stock worth $29,025,396 over the last ninety days. Company insiders own 6.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on SCHW. Truist Financial upped their price target on Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Citigroup upped their price target on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Barclays upped their price target on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Cowen reiterated a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. Finally, Piper Sandler boosted their price objective on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and sixteen have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $99.35.

Charles Schwab Stock Down 2.2%

SCHW stock traded down $2.16 during mid-day trading on Friday, reaching $95.57. The company had a trading volume of 9,790,479 shares, compared to its average volume of 8,649,078. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.53 and a current ratio of 0.53. The company has a market capitalization of $173.65 billion, a price-to-earnings ratio of 25.69, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The firm has a fifty day simple moving average of $91.28 and a 200 day simple moving average of $83.66. The Charles Schwab Corporation has a fifty-two week low of $61.15 and a fifty-two week high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly 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 for the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.73 EPS. Analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab declared that its board has approved a share repurchase plan on Thursday, July 24th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be given a $0.27 dividend. 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 currently 29.03%.

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.