Arrowstreet Capital Limited Partnership Trims Stock Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Arrowstreet Capital cut its stake in Charles Schwab by 10.3% in the first quarter, selling 337,555 shares and ending with 2.95 million shares worth about $277.4 million.
• Charles Schwab has continued to draw bullish analyst and income-investor attention, with Argus raising its price target to $114, Zacks adding the stock to its Best Income Stocks list, and the company declaring a quarterly dividend of $0.32 per share.
• The company’s latest quarterly results were solid, as earnings and revenue both beat expectations; SCHW reported $1.62 EPS on $7.07 billion in revenue, with revenue up 20.9% year over year.

Arrowstreet Capital Limited Partnership lowered its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 10.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 2,952,078 shares of the financial services provider's stock after selling 337,555 shares during the period. Arrowstreet Capital Limited Partnership owned 0.17% of Charles Schwab worth $277,436,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Souders Financial Advisors boosted its stake in Charles Schwab by 2.3% during the fourth quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider's stock valued at $434,000 after buying an additional 98 shares during the period. Lantz Financial LLC increased its position in shares of Charles Schwab by 3.1% in the fourth quarter. Lantz Financial LLC now owns 3,243 shares of the financial services provider's stock worth $324,000 after purchasing an additional 99 shares during the last quarter. Essex Financial Services Inc. raised its stake in Charles Schwab by 0.8% in the fourth quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider's stock valued at $1,282,000 after purchasing an additional 105 shares in the last quarter. JFS Wealth Advisors LLC raised its stake in Charles Schwab by 0.4% in the fourth quarter. JFS Wealth Advisors LLC now owns 24,626 shares of the financial services provider's stock valued at $2,460,000 after purchasing an additional 107 shares in the last quarter. Finally, FSM Wealth Advisors LLC lifted its position in Charles Schwab by 4.1% during the fourth quarter. FSM Wealth Advisors LLC now owns 2,688 shares of the financial services provider's stock valued at $269,000 after purchasing an additional 107 shares during the last quarter. 84.38% of the stock is owned by institutional investors.

Charles Schwab News Roundup

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

• Positive Sentiment: Schwab announced a quarterly common stock dividend of $0.32 per share, along with preferred stock dividends, reinforcing its capital-return story for income-focused investors. Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends
• Positive Sentiment: Argus raised its price target on SCHW to $114 from $108 and kept a buy rating, signaling confidence in further upside. Argus raises Charles Schwab price target
• Positive Sentiment: Schwab was added to Zacks’ “Best Income Stocks to Buy” list, suggesting investors continue to view the company as an attractive income and quality financial-services name. Best Income Stocks to Buy for July 23rd
• Positive Sentiment: Recent coverage highlighted Schwab’s “dual beats” in its latest quarter, with earnings and revenue both coming in above expectations, adding to the bullish case after the July 21 report. Charles Schwab: Dual Beats And Attractive Preferreds
• Neutral Sentiment: Schwab also received media attention for its call for the CLARITY Act to pass, framing crypto regulation as a potential long-term industry catalyst, though the timing remains uncertain. Charles Schwab Calls CLARITY Act a Fundamental Catalyst

Insider Transactions at Charles Schwab

In related news, insider Jonathan S. Beatty sold 2,000 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $100.01, for a total value of $200,020.00. Following the transaction, the insider directly owned 13,738 shares of the company's stock, valued at approximately $1,373,937.38. This represents a 12.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total value of $228,312.00. Following the sale, the director owned 177,508 shares in the company, valued at approximately $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 6,520 shares of company stock valued at $622,392. 6.30% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of research firms have commented on SCHW. Weiss Ratings reissued a "buy (b-)" rating on shares of Charles Schwab in a research note on Thursday, June 18th. BMO Capital Markets lowered Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price target for the company. in a research note on Monday, July 20th. Citigroup reiterated a "market outperform" rating on shares of Charles Schwab in a report on Wednesday. Jefferies Financial Group cut their target price on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a research note on Monday, April 6th. Finally, TD Cowen increased their price target on shares of Charles Schwab from $108.00 to $109.00 and gave the company a "buy" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $119.76.

Charles Schwab Stock Performance

Shares of SCHW opened at $101.92 on Friday. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48. The stock has a market cap of $177.25 billion, a P/E ratio of 18.53, a P/E/G ratio of 0.82 and a beta of 0.77. The business's 50 day moving average price is $93.93 and its 200-day moving average price is $95.39. The Charles Schwab Corporation has a 52 week low of $83.96 and a 52 week high of $107.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.06. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.The company had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same quarter last year, the company earned $1.14 EPS. The firm's revenue for the quarter was up 20.9% on a year-over-year basis. Equities research analysts anticipate that The Charles Schwab Corporation will post 6.43 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, August 14th. Charles Schwab's dividend payout ratio is 23.27%.

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.

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