Capital Research Global Investors Acquires New Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Capital Research Global Investors opened a new position in Charles Schwab during the fourth quarter, buying 330,449 shares worth about $33.0 million.
• Institutional ownership remains very high, with 84.38% of Schwab shares held by institutional investors and hedge funds. Several other firms also modestly increased their stakes.
• Recent trading and earnings updates were broadly positive: Schwab reported better-than-expected Q1 results, raised its FY 2026 EPS guidance, and saw signs of a rebound in retail trading activity, though the stock still trades below its 50-day and 200-day moving averages.

Capital Research Global Investors acquired a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 4th quarter, according to its most recent filing with the SEC. The fund acquired 330,449 shares of the financial services provider's stock, valued at approximately $33,015,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Souders Financial Advisors boosted its position in Charles Schwab by 2.3% during the 4th quarter. Souders Financial Advisors now owns 4,341 shares of the financial services provider's stock worth $434,000 after acquiring an additional 98 shares during the last quarter. Lantz Financial LLC boosted its position in Charles Schwab by 3.1% during the 4th quarter. Lantz Financial LLC now owns 3,243 shares of the financial services provider's stock worth $324,000 after acquiring an additional 99 shares during the last quarter. Roberts Wealth Advisors LLC boosted its position in Charles Schwab by 0.5% during the 4th quarter. Roberts Wealth Advisors LLC now owns 22,961 shares of the financial services provider's stock worth $2,294,000 after acquiring an additional 105 shares during the last quarter. Essex Financial Services Inc. boosted its position in Charles Schwab by 0.8% during the 4th quarter. Essex Financial Services Inc. now owns 12,833 shares of the financial services provider's stock worth $1,282,000 after acquiring an additional 105 shares during the last quarter. Finally, JFS Wealth Advisors LLC boosted its position in Charles Schwab by 0.4% during the 4th quarter. JFS Wealth Advisors LLC now owns 24,626 shares of the financial services provider's stock worth $2,460,000 after acquiring an additional 107 shares during the last quarter. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Paul V. Woolway sold 7,941 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $100.00, for a total value of $794,100.00. Following the completion of the sale, the insider owned 29,866 shares of the company's stock, valued at approximately $2,986,600. This represents a 21.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total value of $228,312.00. Following the completion of the sale, 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 position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 59,700 shares of company stock valued at $5,889,131. 6.30% of the stock is owned by insiders.

Charles Schwab News Roundup

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab’s Trading Activity Index rebounded in May, suggesting retail clients became more active after a softer April. That supports the idea of stronger engagement and potentially better trading-related revenue for Charles Schwab. Schwab Trading Activity Index™: STAX Score Rebounds in May
• Positive Sentiment: Analysts highlighted Charles Schwab as a beneficiary of industry tailwinds, including efficiency efforts, solid trading performance, and momentum in underwriting and advisory businesses, which can support earnings expectations. Buy These 3 Investment Bank Stocks From a Promising Industry
• Positive Sentiment: Multiple reports pointed to upside potential in SCHW shares, with Wall Street consensus implying meaningful room for appreciation if earnings revisions continue to improve. Does Charles Schwab (SCHW) Have the Potential to Rally 29.39% as Wall Street Analysts Expect?
• Positive Sentiment: Comments from Schwab executives about a pickup in retail options trading and lower volatility in crypto markets reinforce the broader theme of active investor participation, which could benefit Schwab’s brokerage business. CZ says bitcoin won't be ‘dead for long’ as Charles Schwab exec sees lower volatility this cycle
• Neutral Sentiment: Schwab executives also appeared in media interviews discussing market conditions, AI-related investing trends, and retail options activity. These comments mainly reinforce Schwab’s market presence rather than signal a direct business catalyst. Seeing a pickup in options trading among retail investors, says Charles Schwab's Joe Mazzola
• Negative Sentiment: The stock is still trading below its 50-day and 200-day moving averages, which suggests the rebound remains technically fragile even after recent positive headlines.

Charles Schwab Trading Up 0.7%

NYSE SCHW opened at $88.70 on Wednesday. The company has a market cap of $154.26 billion, a PE ratio of 17.60, a PEG ratio of 0.83 and a beta of 0.77. 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 stock has a 50 day moving average of $91.25 and a 200-day moving average of $95.31.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 EPS for the quarter, beating the consensus estimate of $1.39 by $0.04. The company had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The firm's revenue for the quarter was up 15.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.04 EPS. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. On average, equities research analysts anticipate that The Charles Schwab Corporation will post 6.12 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on SCHW shares. Keefe, Bruyette & Woods started coverage on Charles Schwab in a research report on Wednesday, April 8th. They set an "outperform" rating and a $110.00 price target for the company. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $128.00 price target on shares of Charles Schwab in a research report on Friday, May 15th. Morgan Stanley reduced their price target on Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a research report on Friday, April 17th. UBS Group reduced their price target on Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a research report on Wednesday, April 8th. Finally, Piper Sandler upped their price target on Charles Schwab from $103.00 to $105.00 and gave the stock a "neutral" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $116.00.

Charles Schwab Profile

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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