Blue Whale Capital LLP Decreases Position in The Charles Schwab Corporation $SCHW

Key Points

• Blue Whale Capital cut its stake in The Charles Schwab Corporation by 61.9% in Q3, selling 275,376 shares and leaving 169,746 shares valued at $16.21 million (about 0.9% of its portfolio).
• Charles Schwab beat quarterly expectations (EPS $1.39 vs. $1.32; revenue $6.34B, +18.9% YoY), set FY2026 guidance of 5.700–5.800 EPS, and raised its quarterly dividend to $0.32 (annualized $1.28, ~1.4% yield).

Blue Whale Capital LLP decreased its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 61.9% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 169,746 shares of the financial services provider's stock after selling 275,376 shares during the period. Charles Schwab comprises approximately 0.9% of Blue Whale Capital LLP's portfolio, making the stock its 22nd largest position. Blue Whale Capital LLP's holdings in Charles Schwab were worth $16,206,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. West Branch Capital LLC purchased a new position in Charles Schwab in the third quarter valued at $27,000. Evelyn Partners Asset Management Ltd purchased a new stake in Charles Schwab during the 2nd quarter worth about $33,000. Howard Hughes Medical Institute purchased a new stake in Charles Schwab during the 2nd quarter worth about $34,000. Redmont Wealth Advisors LLC acquired a new stake in Charles Schwab in the 3rd quarter valued at about $34,000. Finally, FSA Wealth Management LLC acquired a new stake in Charles Schwab in the 2nd quarter valued at about $36,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. Piper Sandler boosted their price objective on Charles Schwab from $100.00 to $105.00 and gave the stock a "neutral" rating in a research report on Wednesday, January 14th. Morgan Stanley lifted their price target on shares of Charles Schwab from $139.00 to $148.00 and gave the stock an "overweight" rating in a research note on Monday, December 22nd. Citigroup reiterated a "market outperform" rating on shares of Charles Schwab in a report on Monday, January 12th. Weiss Ratings reissued a "hold (c+)" rating on shares of Charles Schwab in a research report on Thursday, January 22nd. Finally, UBS Group raised their price objective on shares of Charles Schwab from $123.00 to $125.00 and gave the company a "buy" rating in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $115.95.

Charles Schwab Price Performance

SCHW stock opened at $93.21 on Wednesday. The business has a 50 day moving average price of $99.47 and a 200 day moving average price of $96.43. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.52. The stock has a market cap of $163.33 billion, a price-to-earnings ratio of 20.00, a PEG ratio of 0.76 and a beta of 0.93. The Charles Schwab Corporation has a fifty-two week low of $65.88 and a fifty-two week high of $107.50.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Wednesday, January 21st. The financial services provider reported $1.39 EPS for the quarter, beating the consensus estimate of $1.32 by $0.07. Charles Schwab had a net margin of 37.01% and a return on equity of 21.97%. The company had revenue of $6.34 billion for the quarter, compared to analyst estimates of $6.19 billion. During the same period in the prior year, the firm posted $1.01 earnings per share. The firm's revenue was up 18.9% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 13th were given a $0.32 dividend. This is a positive change from Charles Schwab's previous quarterly dividend of $0.27. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.4%. Charles Schwab's payout ratio is 27.47%.

Insider Activity

In other Charles Schwab news, Director Christopher V. Dodds sold 11,825 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $104.55, for a total transaction of $1,236,303.75. Following the transaction, the director owned 449,406 shares of the company's stock, valued at approximately $46,985,397.30. This trade represents a 2.56% 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, Chairman Walter W. Bettinger sold 67,514 shares of Charles Schwab stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $104.25, for a total value of $7,038,334.50. Following the sale, the chairman owned 529,346 shares in the company, valued at $55,184,320.50. This trade represents a 11.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 415,568 shares of company stock worth $42,639,058 over the last three months. Company insiders own 6.30% of the company's stock.

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.

Want to see what other hedge funds are holding SCHW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Charles Schwab Corporation (NYSE:SCHW - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.