Brant Point Investment Management LLC Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Brant Point Investment Management LLC has acquired a new position in The Charles Schwab Corporation by purchasing 29,610 shares valued at approximately $2.3 million during the first quarter.
• The company reported $1.14 earnings per share for its recent quarter, exceeding analyst expectations and marking a 24.8% year-over-year revenue increase to $5.85 billion.
• Charles Schwab's board has authorized a $20 billion stock repurchase program, indicating the board's belief that the stock is undervalued, as it can reacquire up to 11.6% of its shares.

Brant Point Investment Management LLC bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to its most recent Form 13F filing with the SEC. The fund bought 29,610 shares of the financial services provider's stock, valued at approximately $2,318,000.

A number of other institutional investors also recently made changes to their positions in the stock. Atwood & Palmer Inc. bought a new position in shares of Charles Schwab in the first quarter valued at $25,000. Westside Investment Management Inc. grew its position 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 worth $27,000 after acquiring an additional 150 shares in the last quarter. Stone House Investment Management LLC bought a new stake in Charles Schwab in the first quarter worth approximately $31,000. WFA Asset Management Corp bought a new stake in shares of Charles Schwab during the 1st quarter worth $33,000. Finally, Cornerstone Planning Group LLC boosted its holdings in shares of Charles Schwab by 90.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock worth $36,000 after buying an additional 220 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, insider Jonathan S. Beatty sold 6,144 shares of the business's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $96.81, for a total value of $594,800.64. Following the sale, the insider directly owned 11,923 shares in the company, valued at approximately $1,154,265.63. The trade was a 34.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, 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 value of $316,037.40. Following the completion of the sale, the insider owned 41,188 shares in the company, valued at $3,956,519.28. This represents a 7.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 298,299 shares of company stock worth $29,005,931 in the last quarter. Insiders own 6.30% of the company's stock.

Charles Schwab Stock Performance

Shares of SCHW stock traded down $1.18 on Friday, hitting $95.91. The company's stock had a trading volume of 8,829,399 shares, compared to its average volume of 7,885,997. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The stock's 50 day moving average is $94.58 and its 200-day moving average is $85.83. The Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The company has a market capitalization of $174.10 billion, a PE ratio of 25.78, a PEG ratio of 0.94 and a beta of 0.96.

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

Charles Schwab declared that its Board of Directors has authorized a share repurchase program on Thursday, July 24th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Charles Schwab Dividend Announcement

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

Analyst Ratings Changes

SCHW has been the subject of a number of research reports. Truist Financial increased their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a report on Friday, August 15th. Raymond James Financial reiterated an "outperform" rating and set a $99.00 target price on shares of Charles Schwab in a research report on Friday, July 18th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and boosted their target price for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. Bank of America lifted their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Finally, Barclays lifted their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Sixteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $99.60.

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.