Bain Capital Public Equity LP Purchases New Position in The Charles Schwab Corporation $SCHW

Key Points

• Bain Capital Public Equity LP acquired a new position in The Charles Schwab Corporation, purchasing 61,521 shares valued at approximately $4.8 million, making it the 9th largest position in their portfolio.
• Charles Schwab recently announced a quarterly dividend of $0.27 per share, reflecting an annualized yield of 1.1% and a payout ratio of 29.03%.
• Wall Street analysts maintain a consensus rating of "Moderate Buy" for Charles Schwab, with an average price target of $99.60, indicated by 16 Buy ratings and 2 Sell ratings across various research reports.

Bain Capital Public Equity LP acquired a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 61,521 shares of the financial services provider's stock, valued at approximately $4,816,000. Charles Schwab makes up about 5.3% of Bain Capital Public Equity LP's portfolio, making the stock its 9th largest position.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Atwood & Palmer Inc. acquired a new stake in shares of Charles Schwab in the 1st quarter valued at about $25,000. Westside Investment Management Inc. lifted its stake in Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after buying an additional 150 shares during the last quarter. Stone House Investment Management LLC acquired a new stake in shares of Charles Schwab in the first quarter valued at approximately $31,000. Activest Wealth Management boosted its holdings in shares of Charles Schwab by 6,650.0% in the first quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 399 shares during the period. Finally, WFA Asset Management Corp acquired a new position in shares of Charles Schwab in the 1st quarter valued at $33,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Wall Street Analysts Forecast Growth

SCHW has been the subject of a number of recent research reports. Citigroup increased their price target on shares of Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Raymond James Financial reaffirmed an "outperform" rating and issued a $99.00 target price on shares of Charles Schwab in a report on Friday, July 18th. 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 report on Monday, July 21st. JMP Securities boosted their price target on Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a research report on Monday, July 21st. Finally, Morgan Stanley increased their price objective on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Sixteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and a consensus price target of $99.60.

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $95.97 on Wednesday. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. The company has a 50-day moving average price of $94.87 and a 200 day moving average price of $86.06. The company has a market cap of $174.21 billion, a P/E ratio of 25.80, a PEG ratio of 0.94 and a beta of 0.96. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the prior year, the business posted $0.73 EPS. The company's revenue for the quarter was up 24.8% on a year-over-year basis. Research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date of this dividend was 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 29.03%.

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

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 3,290 shares of the business's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $96.06, for a total transaction of $316,037.40. Following the sale, the insider owned 41,188 shares of the company's stock, valued at approximately $3,956,519.28. The trade was a 7.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Jonathan S. Beatty sold 6,144 shares of the company's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the transaction, the insider owned 11,923 shares in the company, valued at $1,154,265.63. The trade was a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 295,009 shares of company stock worth $28,717,464. 6.30% of the stock is currently owned by insiders.

Charles Schwab 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.

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