Capital Advantage Inc. Boosts Stock Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Capital Advantage Inc. increased its stake in The Charles Schwab Corporation by 36.7%, owning 11,088 shares worth approximately $1,012,000 at the end of the last reporting period.
• The Charles Schwab Corporation reported quarterly earnings of $1.14 per share, surpassing estimates, with revenue reaching $5.85 billion, a 24.8% increase year-over-year.
• Charles Schwab declared a quarterly dividend of $0.27 per share, reflecting a dividend yield of 1.1%, and announced a stock repurchase plan authorizing buybacks of up to $20 billion.

Capital Advantage Inc. lifted its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 36.7% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 11,088 shares of the financial services provider's stock after purchasing an additional 2,979 shares during the period. Capital Advantage Inc.'s holdings in Charles Schwab were worth $1,012,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Sheaff Brock Investment Advisors LLC increased its stake in Charles Schwab by 1.6% during the 1st quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after purchasing an additional 129 shares in the last quarter. HM Payson & Co. grew its position in shares of Charles Schwab by 0.7% in the 1st quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock valued at $1,509,000 after acquiring an additional 130 shares during the period. Cornerstone Wealth Management LLC raised its stake in Charles Schwab by 2.1% in the first quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock valued at $513,000 after buying an additional 132 shares during the period. Journey Strategic Wealth LLC boosted its position in Charles Schwab by 3.1% during the first quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock worth $351,000 after purchasing an additional 135 shares during the period. Finally, Meridian Wealth Management LLC lifted its stake in shares of Charles Schwab by 2.2% during the 1st quarter. Meridian Wealth Management LLC now owns 6,192 shares of the financial services provider's stock worth $485,000 after buying an additional 136 shares during the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Trading Up 1.1%

SCHW traded up $0.99 during midday trading on Friday, hitting $94.27. 14,854,005 shares of the company were exchanged, compared to its average volume of 9,536,586. The firm has a market capitalization of $171.12 billion, a P/E ratio of 25.34, a P/E/G ratio of 0.93 and a beta of 0.96. The firm's 50 day moving average price is $95.42 and its 200-day moving average price is $87.41. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a 1-year low of $62.41 and a 1-year high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same period in the previous year, the firm earned $0.73 earnings per share. The firm's quarterly revenue was up 24.8% on a year-over-year basis. As a group, equities analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were given a $0.27 dividend. 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%.

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

Analyst Ratings Changes

SCHW has been the subject of a number of research analyst reports. Wells Fargo & Company set a $102.00 price objective on Charles Schwab and gave the stock an "overweight" rating in a report on Friday, July 18th. Bank of America lifted their target price on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a report on Monday, July 21st. Piper Sandler upped their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Truist Financial raised their price target on shares of Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research report on Friday, August 15th. Finally, Zacks Research lowered shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Charles Schwab has an average rating of "Moderate Buy" and an average price target of $100.00.

Insider Transactions at Charles Schwab

In related news, insider Paul V. Woolway sold 3,290 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $96.06, for a total transaction of $316,037.40. Following the transaction, the insider directly owned 41,188 shares of the company's stock, valued at approximately $3,956,519.28. This represents a 7.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares in the company, valued at $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 267,213 shares of company stock valued at $26,232,180. 6.30% of the stock is owned by insiders.

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.