Brown Advisory Inc. Sells 296,828 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Brown Advisory trimmed its Charles Schwab stake by 2.4% in the fourth quarter, selling 296,828 shares but still holding 12.2 million shares worth about $1.22 billion. Schwab remains one of the fund’s largest positions.
• Charles Schwab posted solid quarterly results, beating analyst expectations with EPS of $1.43 on revenue of $6.48 billion, up 15.8% year over year. The company also reaffirmed strong profitability and set FY 2026 EPS guidance of $5.70-$5.80.
• Insiders and analysts remain active on the stock: two insiders sold shares under 10b5-1 plans, while the broader analyst view stays constructive with a consensus “Moderate Buy” and an average price target of $116.00. Schwab also paid a quarterly dividend of $0.32 per share, or $1.28 annualized.

Brown Advisory Inc. reduced its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 2.4% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 12,195,433 shares of the financial services provider's stock after selling 296,828 shares during the period. Charles Schwab comprises about 1.7% of Brown Advisory Inc.'s holdings, making the stock its 10th largest position. Brown Advisory Inc. owned approximately 0.69% of Charles Schwab worth $1,218,448,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of the company. Brookwood Investment Group LLC increased its holdings in shares of Charles Schwab by 192.6% during the 4th quarter. Brookwood Investment Group LLC now owns 12,236 shares of the financial services provider's stock valued at $1,222,000 after acquiring an additional 8,054 shares during the last quarter. King Luther Capital Management Corp increased its holdings in shares of Charles Schwab by 34.4% during the 3rd quarter. King Luther Capital Management Corp now owns 296,409 shares of the financial services provider's stock valued at $28,298,000 after acquiring an additional 75,820 shares during the last quarter. Juno Financial Group LLC acquired a new position in shares of Charles Schwab during the 4th quarter valued at about $2,591,000. Swiss Life Asset Management Ltd increased its holdings in shares of Charles Schwab by 4.2% during the 4th quarter. Swiss Life Asset Management Ltd now owns 407,179 shares of the financial services provider's stock valued at $40,681,000 after acquiring an additional 16,482 shares during the last quarter. Finally, Nordea Investment Management AB increased its holdings in shares of Charles Schwab by 13.0% during the 4th quarter. Nordea Investment Management AB now owns 3,437,222 shares of the financial services provider's stock valued at $344,410,000 after acquiring an additional 396,358 shares during the last quarter. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Charles Schwab

In other news, insider Paul V. Woolway sold 7,942 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $98.00, for a total value of $778,316.00. Following the completion of the transaction, the insider directly owned 29,866 shares of the company's stock, valued at approximately $2,926,868. This represents a 21.01% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nigel J. Murtagh sold 41,297 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total value of $4,088,403.00. Following the completion of the transaction, the insider directly owned 57,972 shares of the company's stock, valued at approximately $5,739,228. The trade was a 41.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders 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

Shares of SCHW stock opened at $91.04 on Friday. The stock has a 50 day moving average of $91.05 and a two-hundred day moving average of $95.25. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. The Charles Schwab Corporation has a 12 month low of $83.96 and a 12 month high of $107.50. The company has a market capitalization 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 announced its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.04. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The company had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. During the same quarter last year, the company earned $1.04 EPS. The company's quarterly 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. As a group, equities analysts expect that The Charles Schwab Corporation will post 6.13 EPS for the current year.

Charles Schwab Announces Dividend

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

Key Headlines Impacting Charles Schwab

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 Ratings Changes

SCHW has been the topic of a number of analyst reports. Jefferies Financial Group lowered their price objective on Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a report on Monday, April 6th. JPMorgan Chase & Co. increased their target price on Charles Schwab from $128.00 to $131.00 and gave the company an "overweight" rating in a research note on Friday, April 17th. Morgan Stanley decreased their target price on Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a research note on Friday, April 17th. Keefe, Bruyette & Woods began coverage on Charles Schwab in a research note on Wednesday, April 8th. They set an "outperform" rating and a $110.00 target price for the company. Finally, Weiss Ratings upgraded Charles Schwab from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. One research 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 given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target 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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