Burkehill Global Management LP Purchases New Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Burkehill Global Management LP has acquired a new position in The Charles Schwab Corporation, purchasing 950,000 shares valued at approximately $74.37 million, which now constitutes about 5.6% of Burkehill's total holdings.
• The company recently reported a quarterly EPS of $1.14, surpassing analysts' expectations, with a year-over-year revenue increase of 24.8% to $5.85 billion.
• Charles Schwab has announced a $20 billion stock buyback program, indicating confidence from its board that the shares are undervalued.

Burkehill Global Management LP purchased a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 950,000 shares of the financial services provider's stock, valued at approximately $74,366,000. Charles Schwab makes up about 5.6% of Burkehill Global Management LP's holdings, making the stock its 3rd biggest position. Burkehill Global Management LP owned approximately 0.05% of Charles Schwab at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Atwood & Palmer Inc. acquired a new position in Charles Schwab in the first quarter worth $25,000. Westside Investment Management Inc. boosted its stake 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 purchasing an additional 150 shares in the last quarter. WFA Asset Management Corp acquired a new position in Charles Schwab in the first quarter worth $33,000. Cornerstone Planning Group LLC boosted its stake in Charles Schwab by 90.5% in the first quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock worth $36,000 after purchasing an additional 220 shares in the last quarter. Finally, Beacon Capital Management LLC boosted its stake in Charles Schwab by 53.1% in the first quarter. Beacon Capital Management LLC now owns 487 shares of the financial services provider's stock worth $38,000 after purchasing an additional 169 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Trading Up 1.1%

NYSE SCHW opened at $97.05 on Friday. The stock has a 50-day simple moving average of $92.15 and a 200 day simple moving average of $84.38. The company has a market capitalization of $176.34 billion, a PE ratio of 26.09, a P/E/G ratio of 0.93 and a beta of 0.96. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.53. The Charles Schwab Corporation has a 12 month low of $61.16 and a 12 month high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. The business had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter in the prior year, the company posted $0.73 earnings per share. The firm's revenue was up 24.8% on a year-over-year basis. Research analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 8th will be paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, August 8th. Charles Schwab's payout ratio is presently 29.03%.

Charles Schwab declared that its board has authorized a stock repurchase program on Thursday, July 24th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the financial services provider to repurchase up to 11.6% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research firms have commented on SCHW. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and boosted their price objective for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. Truist Financial boosted their target price on Charles Schwab from $100.00 to $107.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Citigroup boosted their target price on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research report on Monday, July 21st. Finally, Morgan Stanley boosted their target price on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Two analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat.com, Charles Schwab currently has a consensus rating of "Moderate Buy" and an average target price of $99.35.

Insider Transactions at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares of the company's stock, valued at approximately $58,388,148.56. The trade was a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jonathan M. Craig sold 47,500 shares of the business's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total value of $4,201,850.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 308,016 shares of company stock valued at $29,341,433. Insiders own 6.30% of the company's stock.

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.

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