Basswood Capital Management L.L.C. Raises Stock Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Basswood Capital Management increased its Charles Schwab stake by 28.8% in the fourth quarter, buying 136,217 more shares to bring its total holdings to 608,426 shares worth about $60.8 million.
• Charles Schwab posted solid quarterly results, with earnings per share of $1.43 beating estimates and revenue of $6.48 billion topping expectations, while revenue also rose 15.8% year over year.
• Analysts remain broadly positive on SCHW, with several firms raising price targets and the stock carrying a consensus “Moderate Buy” rating despite some insider selling and mixed institutional activity.

Basswood Capital Management L.L.C. lifted its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 28.8% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 608,426 shares of the financial services provider's stock after purchasing an additional 136,217 shares during the quarter. Charles Schwab accounts for approximately 2.5% of Basswood Capital Management L.L.C.'s portfolio, making the stock its 11th largest position. Basswood Capital Management L.L.C.'s holdings in Charles Schwab were worth $60,788,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Dogwood Wealth Management LLC grew its holdings in shares of Charles Schwab by 99.2% during the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock worth $25,000 after purchasing an additional 123 shares in the last quarter. Piscataqua Savings Bank purchased a new position in shares of Charles Schwab during the fourth quarter worth about $26,000. GoalVest Advisory LLC purchased a new position in shares of Charles Schwab during the fourth quarter worth about $28,000. Beacon Financial Strategies CORP bought a new stake in Charles Schwab in the 4th quarter worth approximately $29,000. Finally, Optima Capital LLC bought a new stake in Charles Schwab in the 4th quarter worth approximately $30,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Performance

Shares of SCHW stock opened at $91.04 on Friday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.62 and a current ratio of 0.62. The Charles Schwab Corporation has a fifty-two week low of $83.96 and a fifty-two week high of $107.50. The stock has a 50 day moving average price of $91.05 and a two-hundred day moving average price of $95.25. The company has a market capitalization of $158.32 billion, a P/E ratio of 18.06, a PEG ratio of 0.86 and a beta of 0.77.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.04. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The firm had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. During the same quarter in the previous year, the company posted $1.04 earnings per share. The business's revenue was up 15.8% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Analysts expect that The Charles Schwab Corporation will post 6.13 earnings per share for the current year.

Charles Schwab Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were given a $0.32 dividend. The ex-dividend date was Friday, May 8th. This represents a $1.28 annualized dividend and a yield of 1.4%. Charles Schwab's payout ratio is presently 25.40%.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, Director Frank C. Herringer sold 2,520 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total value of $228,312.00. Following the completion of the sale, the director owned 177,508 shares in the company, valued at approximately $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Paul V. Woolway sold 7,941 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $100.00, for a total value of $794,100.00. Following the completion of the sale, the insider owned 29,866 shares of the company's stock, valued at $2,986,600. The trade was a 21.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 59,700 shares of company stock worth $5,889,131. 6.30% of the stock is currently owned by insiders.

Charles Schwab News Roundup

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

Analyst Upgrades and Downgrades

SCHW has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their target price on Charles Schwab from $128.00 to $131.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Jefferies Financial Group dropped their target price on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a research report on Monday, April 6th. Truist Financial dropped their target price on Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Barclays boosted their target price on Charles Schwab from $117.00 to $127.00 and gave the stock an "overweight" rating in a research report on Friday, May 15th. Finally, Raymond James Financial boosted their target price on Charles Schwab from $126.00 to $137.00 and gave the stock an "outperform" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Charles Schwab presently has a consensus rating of "Moderate Buy" and an average target price of $116.00.

About Charles Schwab

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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