Brant Point Investment Management LLC Lowers Stake in The Charles Schwab Corporation $SCHW

Key Points

• Brant Point Investment Management reduced its stake in Charles Schwab by 48.6% in the fourth quarter, holding 18,000 shares worth about $1.8 million after selling 17,000 shares.
• Schwab reported solid quarterly results, with EPS of $1.43 and revenue of $6.48 billion, both above analyst expectations, while revenue rose 15.8% year over year.
• Sentiment around SCHW remains constructive, supported by record May activity highlights, positive analyst ratings, and a quarterly dividend of $0.32 per share, though insider selling and mixed institutional positioning add some caution.

Brant Point Investment Management LLC cut its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 48.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 18,000 shares of the financial services provider's stock after selling 17,000 shares during the quarter. Brant Point Investment Management LLC's holdings in Charles Schwab were worth $1,798,000 at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of SCHW. Norges Bank purchased a new stake in Charles Schwab in the fourth quarter valued at approximately $1,994,189,000. Primecap Management Co. CA grew its holdings in Charles Schwab by 11.4% in the third quarter. Primecap Management Co. CA now owns 21,209,187 shares of the financial services provider's stock valued at $2,024,841,000 after purchasing an additional 2,174,381 shares during the period. Mondrian Investment Partners LTD purchased a new stake in Charles Schwab in the third quarter valued at approximately $169,104,000. First Trust Advisors LP grew its holdings in Charles Schwab by 292.7% in the third quarter. First Trust Advisors LP now owns 2,206,320 shares of the financial services provider's stock valued at $210,637,000 after purchasing an additional 1,644,503 shares during the period. Finally, Danske Bank A S purchased a new stake in Charles Schwab in the third quarter valued at approximately $142,594,000. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

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

Insider Transactions at Charles Schwab

In other news, Director Frank C. Herringer sold 2,520 shares of the business's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the transaction, the director directly owned 177,508 shares of the company's stock, valued at approximately $16,082,224.80. The trade was a 1.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Nigel J. Murtagh sold 41,297 shares of the business's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the transaction, the insider directly owned 57,972 shares in the company, valued at approximately $5,739,228. The trade was a 41.60% decrease in their ownership of the stock. 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 three months, insiders have sold 59,700 shares of company stock valued at $5,889,131. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Price Performance

SCHW opened at $91.04 on Friday. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48. The Charles Schwab Corporation has a 52-week low of $83.96 and a 52-week high of $107.50. The company has a 50 day moving average of $91.05 and a two-hundred day moving average of $95.25. The company has a market cap of $158.32 billion, a P/E ratio of 18.06, a P/E/G ratio of 0.86 and a beta of 0.77.

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

Charles Schwab Dividend Announcement

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

Analysts Set New Price Targets

A number of research firms recently issued reports on SCHW. UBS Group lowered their target price on shares of Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a report on Wednesday, April 8th. Argus set a $108.00 target price on shares of Charles Schwab in a report on Monday, April 20th. Jefferies Financial Group decreased their price objective on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a research note on Monday, April 6th. Weiss Ratings upgraded shares of Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. Finally, Truist Financial decreased their price objective on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently 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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