Azora Capital LP Has $126.78 Million Position in The Charles Schwab Corporation $SCHW

Key Points

• Azora Capital LP has reduced its position in The Charles Schwab Corporation (SCHW) by 6.6%, now holding approximately $126.78 million in shares, which constitutes 8.6% of its investment portfolio.
• Charles Schwab reported a quarterly profit with earnings per share of $1.14, exceeding analysts' expectations, alongside a revenue of $5.85 billion—a 24.8% year-over-year increase.
• The company has authorized a significant $20 billion stock buyback program, enabling it to repurchase up to 11.6% of its shares, indicating management's belief in the stock's undervaluation.

Azora Capital LP decreased its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 6.6% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 1,619,583 shares of the financial services provider's stock after selling 114,576 shares during the quarter. Charles Schwab makes up 8.6% of Azora Capital LP's investment portfolio, making the stock its 3rd largest position. Azora Capital LP owned approximately 0.09% of Charles Schwab worth $126,781,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in SCHW. Sheaff Brock Investment Advisors LLC grew its position in Charles Schwab by 1.6% during the 1st quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after acquiring an additional 129 shares during the last quarter. HM Payson & Co. grew its position in Charles Schwab by 0.7% during the 1st quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after acquiring an additional 130 shares during the last quarter. Cornerstone Wealth Management LLC grew its position in Charles Schwab by 2.1% during the 1st quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock worth $513,000 after acquiring an additional 132 shares during the last quarter. Journey Strategic Wealth LLC grew its position in Charles Schwab by 3.1% during the 1st quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock worth $351,000 after acquiring an additional 135 shares during the last quarter. Finally, Meridian Wealth Management LLC grew its position in Charles Schwab by 2.2% during the 1st quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock worth $485,000 after acquiring an additional 136 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Charles Schwab Price Performance

Shares of SCHW stock opened at $97.12 on Friday. The firm has a market cap of $176.30 billion, a P/E ratio of 26.11, a P/E/G ratio of 0.95 and a beta of 0.96. The Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The business's 50 day moving average price is $94.45 and its 200-day moving average price is $85.74. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last released 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 company had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.73 EPS. On average, equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab announced that its board has approved a stock buyback program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase up to 11.6% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Insider Activity

In other news, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction that occurred on 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 completion of the transaction, the insider owned 58,999 shares in the company, 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 SEC, which is available through this hyperlink. Also, insider Paul V. Woolway sold 10,129 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total value of $911,711.29. Following the completion of the transaction, the insider owned 39,154 shares of the company's stock, valued at approximately $3,524,251.54. The trade was a 20.55% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 238,843 shares of company stock worth $23,239,273 in the last quarter. 6.30% of the stock is owned by company insiders.

Analysts Set New Price Targets

SCHW has been the topic of several recent research reports. JMP Securities raised their price target on Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Bank of America raised their price target on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Piper Sandler raised their price target on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 15th. Cowen restated a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Finally, Citigroup raised their price target on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Sixteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $99.60.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.