Corebridge Financial Inc. Raises Stock Position in The Charles Schwab Corporation $SCHW

Key Points

• Corebridge Financial Inc. has increased its stake in The Charles Schwab Corporation by 8.7%, holding 418,026 shares valued at approximately $32.72 million as of its latest SEC filing.
• The company announced a $20 billion share buyback plan, allowing it to repurchase up to 11.6% of its shares, signaling management's belief that the stock is undervalued.
• Charles Schwab has declared a quarterly dividend of $0.27 per share, which represents an annual yield of 1.1% and reflects a dividend payout ratio of 29.03%.

Corebridge Financial Inc. grew its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 8.7% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 418,026 shares of the financial services provider's stock after buying an additional 33,595 shares during the period. Corebridge Financial Inc.'s holdings in Charles Schwab were worth $32,723,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in SCHW. Vanguard Group Inc. boosted its stake in shares of Charles Schwab by 15.4% during the 1st quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock worth $11,616,380,000 after purchasing an additional 19,817,022 shares during the period. Wellington Management Group LLP raised its holdings in shares of Charles Schwab by 595.7% in 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 in the last quarter. Primecap Management Co. CA raised its holdings in shares of Charles Schwab by 229.3% in 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 in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of Charles Schwab by 12.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after purchasing an additional 8,954,248 shares in the last quarter. Finally, Nuveen LLC bought a new stake in shares of Charles Schwab in the 1st quarter valued at about $440,699,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Morgan Stanley boosted their price objective on shares of Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a report on Tuesday, May 20th. TD Securities upped their price objective on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a report on Tuesday, May 20th. Piper Sandler increased their price target 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. Finally, Raymond James Financial reissued an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a report on Friday, July 18th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Charles Schwab has a consensus rating of "Moderate Buy" and a consensus target price of $99.60.

Charles Schwab Trading Down 0.3%

Shares of SCHW traded down $0.32 during trading on Wednesday, reaching $96.92. 5,071,879 shares of the company traded hands, compared to its average volume of 8,008,145. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The stock has a market cap of $175.94 billion, a PE ratio of 26.05, a price-to-earnings-growth ratio of 0.96 and a beta of 0.96. The stock has a 50-day simple moving average of $94.30 and a 200-day simple moving average of $85.63. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced 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. The business had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The business's revenue for the quarter was up 24.8% on a year-over-year basis. During the same period last year, the business earned $0.73 earnings per share. On average, analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Dividend Announcement

The firm also recently disclosed 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 was 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 29.03%.

Charles Schwab announced that its Board of Directors has authorized a stock repurchase program 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 stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insider Activity

In related news, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total value of $911,711.29. Following the completion of the transaction, the insider owned 39,154 shares in the company, valued at $3,524,251.54. The trade was a 20.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the sale, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. This represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 241,693 shares of company stock worth $23,488,848 over the last three months. Insiders own 6.30% of the company's stock.

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.