Chevy Chase Trust Holdings LLC Purchases 10,306 Shares of The Charles Schwab Corporation $SCHW

Key Points

• Chevy Chase Trust Holdings LLC increased its stake in The Charles Schwab Corporation by 1.1%, acquiring an additional 10,306 shares, bringing its total to 919,454 shares valued at approximately $83.89 million.
• The company announced a $20 billion stock buyback plan, indicating that the board believes the stock is undervalued.
• Charles Schwab reported a strong quarterly performance, with earnings of $1.31 per share, surpassing analysts' expectations and reflecting a 26.6% increase in year-over-year revenue.

Chevy Chase Trust Holdings LLC grew its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 1.1% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 919,454 shares of the financial services provider's stock after purchasing an additional 10,306 shares during the period. Chevy Chase Trust Holdings LLC owned about 0.05% of Charles Schwab worth $83,891,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of SCHW. Vanguard Group Inc. increased its holdings in shares of Charles Schwab by 15.4% in the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after buying an additional 19,817,022 shares during the period. Wellington Management Group LLP increased its holdings in Charles Schwab by 595.7% during the 1st quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock valued at $1,212,461,000 after purchasing an additional 13,262,309 shares during the period. Primecap Management Co. CA increased its holdings in Charles Schwab by 229.3% during the 1st quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after purchasing an additional 9,749,728 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in shares of Charles Schwab by 12.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock worth $6,422,795,000 after acquiring an additional 8,954,248 shares during the period. Finally, Nuveen LLC purchased a new position in shares of Charles Schwab during the 1st quarter worth approximately $440,699,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Trading Down 1.0%

Shares of Charles Schwab stock opened at $93.38 on Friday. The firm has a market cap of $169.51 billion, a price-to-earnings ratio of 25.10, a PEG ratio of 0.89 and a beta of 0.97. The business has a 50-day moving average price of $94.74 and a 200-day moving average price of $89.47. 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 twelve month low of $65.88 and a twelve month high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data on Thursday, October 16th. The financial services provider reported $1.31 earnings per share for the quarter, beating analysts' consensus estimates of $1.25 by $0.06. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm had revenue of $6.14 billion during the quarter, compared to analyst estimates of $5.93 billion. During the same quarter last year, the business posted $0.71 earnings per share. The business's quarterly revenue was up 26.6% compared to the same quarter last year. Equities research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its board has authorized a stock buyback plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Insider Transactions at Charles Schwab

In other Charles Schwab news, General Counsel Peter J. Morgan III sold 50,016 shares of the firm's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $97.00, for a total value of $4,851,552.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 transaction of $316,037.40. Following the completion of the sale, the insider directly owned 41,188 shares of the company's stock, valued at approximately $3,956,519.28. The trade was a 7.40% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 267,128 shares of company stock worth $26,232,077 in the last quarter. Company insiders own 6.30% of the company's stock.

Wall Street Analyst Weigh In

SCHW has been the topic of a number of analyst reports. Keefe, Bruyette & Woods boosted their price target on Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. William Blair cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. Bank of America boosted their target price on shares of Charles Schwab from $84.00 to $86.00 and gave the company an "underperform" rating in a research note on Thursday, October 2nd. Piper Sandler restated a "neutral" rating on shares of Charles Schwab in a research note on Tuesday. Finally, Zacks Research lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $102.20.

Charles Schwab 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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