Assetmark Inc. Increases Stock Holdings in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Assetmark Inc. has increased its stake in The Charles Schwab Corporation by 7.3%, acquiring a total of 431,319 shares valued at approximately $33.76 million.
• Charles Schwab recently reported earnings of $1.14 per share, surpassing analyst estimates and demonstrating a 24.8% year-over-year revenue growth to $5.85 billion.
• The company authorized a share repurchase plan of up to $20 billion, indicating management's belief that the shares are undervalued.

Assetmark Inc. lifted its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 7.3% in the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 431,319 shares of the financial services provider's stock after purchasing an additional 29,445 shares during the quarter. Assetmark Inc.'s holdings in Charles Schwab were worth $33,764,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Atwood & Palmer Inc. purchased a new position in Charles Schwab during the 1st quarter valued at $25,000. Westside Investment Management Inc. boosted its holdings in Charles Schwab by 75.0% during the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 150 shares during the period. WFA Asset Management Corp purchased a new position in Charles Schwab during the 1st quarter valued at $33,000. Cornerstone Planning Group LLC boosted its holdings in Charles Schwab by 90.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock valued at $36,000 after acquiring an additional 220 shares during the period. Finally, Murphy & Mullick Capital Management Corp purchased a new position in Charles Schwab during the 4th quarter valued at $38,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Trading Up 0.6%

SCHW opened at $97.05 on Friday. The firm has a market cap of $176.33 billion, a price-to-earnings ratio of 26.09, a PEG ratio of 0.93 and a beta of 0.93. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.53. The Charles Schwab Corporation has a 12 month low of $61.15 and a 12 month high of $98.28. The stock has a fifty day moving average price of $90.34 and a 200-day moving average price of $82.81.

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 the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. The company had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same period in the prior year, the company posted $0.73 EPS. The firm's quarterly revenue was up 24.8% compared to the same quarter last year. As a group, equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be given a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.11%. The ex-dividend date is Friday, August 8th. Charles Schwab's dividend payout ratio is currently 29.03%.

Charles Schwab declared that its Board of Directors 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 repurchase up to 11.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

A number of equities analysts recently issued reports on SCHW shares. 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. UBS Group boosted their price objective on Charles Schwab from $95.00 to $96.00 and gave the company a "buy" rating in a report on Tuesday, April 22nd. Citigroup boosted their price objective on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, July 21st. Raymond James Financial reiterated an "outperform" rating and issued a $99.00 target price on shares of Charles Schwab in a report on Friday, July 18th. Finally, Barclays upped their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Two research 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 company has an average rating of "Moderate Buy" and a consensus price target of $98.65.

Insider Activity at Charles Schwab

In related news, General Counsel Peter J. Morgan III sold 10,176 shares of the company's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $87.39, for a total transaction of $889,280.64. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Jonathan M. Craig sold 47,500 shares of the company's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total value of $4,201,850.00. The disclosure for this sale can be found here. Insiders sold a total of 116,313 shares of company stock worth $10,264,091 over the last ninety days. Corporate insiders own 6.30% of the company's stock.

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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