Charles Schwab Investment Management Inc. Acquires 1,224,400 Shares of The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Charles Schwab Investment Management Inc. increased its holdings in The Charles Schwab Corporation by 15.1%, acquiring an additional 1,224,400 shares to reach a total of 9,357,890 shares valued at approximately $732.5 million.
• The company's quarterly earnings exceeded analysts' expectations, reporting $1.14 earnings per share against a consensus estimate of $1.10, with revenues up 24.8% year-over-year to $5.85 billion.
• Charles Schwab's Board of Directors has initiated a $20 billion share repurchase plan, indicating confidence in the company's valuation, while the company recently declared a dividend of $0.27 per share with a current annualized yield of 1.1%.

Charles Schwab Investment Management Inc. raised its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 15.1% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 9,357,890 shares of the financial services provider's stock after buying an additional 1,224,400 shares during the quarter. Charles Schwab Investment Management Inc. owned 0.52% of Charles Schwab worth $732,536,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the business. Brighton Jones LLC raised its position in shares of Charles Schwab by 380.5% during the fourth quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider's stock valued at $1,794,000 after buying an additional 19,195 shares during the last quarter. FIL Ltd increased its stake in Charles Schwab by 159.0% during the fourth quarter. FIL Ltd now owns 923,000 shares of the financial services provider's stock valued at $68,311,000 after acquiring an additional 566,591 shares during the period. Martingale Asset Management L P raised its holdings in Charles Schwab by 987.6% in the 4th quarter. Martingale Asset Management L P now owns 110,445 shares of the financial services provider's stock valued at $8,174,000 after acquiring an additional 100,290 shares in the last quarter. Texas Yale Capital Corp. lifted its position in shares of Charles Schwab by 19.7% in the 4th quarter. Texas Yale Capital Corp. now owns 24,890 shares of the financial services provider's stock worth $1,842,000 after acquiring an additional 4,090 shares during the period. Finally, TRUE Private Wealth Advisors acquired a new stake in shares of Charles Schwab during the 4th quarter worth approximately $223,000. 84.38% of the stock is owned by institutional investors.

Charles Schwab Trading Down 0.8%

SCHW opened at $95.91 on Friday. The Charles Schwab Corporation has a 1-year low of $61.16 and a 1-year high of $99.59. The firm has a 50-day moving average price of $91.98 and a two-hundred day moving average price of $84.24. The stock has a market capitalization of $174.26 billion, a PE ratio of 25.78, a PEG 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.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.73%. The business had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the business posted $0.73 earnings per share. Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year. As a group, equities analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab declared that its Board of Directors has initiated a share repurchase plan on Thursday, July 24th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 11.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Charles Schwab Dividend Announcement

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

Insider Activity at Charles Schwab

In related news, insider Paul V. Woolway sold 3,290 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $96.06, for a total value of $316,037.40. Following the transaction, the insider owned 41,188 shares in the company, valued at $3,956,519.28. This trade represents a 7.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 sale, the chairman directly owned 590,734 shares of the company's stock, valued at $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 308,016 shares of company stock valued at $29,341,433 over the last quarter. 6.30% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts recently commented on SCHW shares. The Goldman Sachs Group upgraded Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 target price for the company in a research note on Friday, April 25th. Piper Sandler raised their price objective on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a report on Tuesday, July 15th. William Blair lowered shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. UBS Group upped their target price on shares of Charles Schwab from $95.00 to $96.00 and gave the company a "buy" rating in a research note on Tuesday, April 22nd. Finally, JMP Securities raised their price target on shares of Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research note on Monday, July 21st. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $99.35.

Charles Schwab Company Profile

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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