Cumberland Partners Ltd Buys Shares of 12,332 The Charles Schwab Corporation $SCHW

Key Points

• Cumberland Partners Ltd opened a new position in Charles Schwab during the first quarter, buying 12,332 shares worth about $1.159 million.
• Charles Schwab continues to attract heavy institutional interest, with hedge funds and other institutions owning 84.38% of the stock and several firms recently increasing their stakes.
• The company reported a strong quarter, beating earnings and revenue estimates, while also announcing a $0.32 quarterly dividend; analysts remain broadly positive, with a consensus Moderate Buy rating and a price target of $119.76.

Cumberland Partners Ltd bought a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to its most recent disclosure with the SEC. The firm bought 12,332 shares of the financial services provider's stock, valued at approximately $1,159,000.

Several other institutional investors have also modified their holdings of the stock. Norges Bank purchased a new stake in shares of Charles Schwab in the fourth quarter valued at about $1,994,189,000. Bank of New York Mellon Corp raised its stake in Charles Schwab by 22.9% during the first quarter. Bank of New York Mellon Corp now owns 16,162,082 shares of the financial services provider's stock worth $1,518,913,000 after purchasing an additional 3,009,884 shares during the period. Primecap Management Co. CA raised its stake in Charles Schwab by 9.7% during the fourth quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider's stock worth $2,325,512,000 after purchasing an additional 2,066,884 shares during the period. Focus Partners Wealth boosted its holdings in Charles Schwab by 716.5% in the 4th quarter. Focus Partners Wealth now owns 2,101,463 shares of the financial services provider's stock valued at $209,948,000 after purchasing an additional 1,844,095 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. purchased a new stake in shares of Charles Schwab in the 1st quarter valued at approximately $129,140,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Key Stories Impacting Charles Schwab

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

• Positive Sentiment: Schwab announced a quarterly common stock dividend of $0.32 per share, along with preferred stock dividends, reinforcing its capital-return story for income-focused investors. Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends
• Positive Sentiment: Argus raised its price target on SCHW to $114 from $108 and kept a buy rating, signaling confidence in further upside. Argus raises Charles Schwab price target
• Positive Sentiment: Schwab was added to Zacks’ “Best Income Stocks to Buy” list, suggesting investors continue to view the company as an attractive income and quality financial-services name. Best Income Stocks to Buy for July 23rd
• Positive Sentiment: Recent coverage highlighted Schwab’s “dual beats” in its latest quarter, with earnings and revenue both coming in above expectations, adding to the bullish case after the July 21 report. Charles Schwab: Dual Beats And Attractive Preferreds
• Neutral Sentiment: Schwab also received media attention for its call for the CLARITY Act to pass, framing crypto regulation as a potential long-term industry catalyst, though the timing remains uncertain. Charles Schwab Calls CLARITY Act a Fundamental Catalyst

Analyst Ratings Changes

A number of analysts have recently issued reports on SCHW shares. Weiss Ratings restated a "buy (b-)" rating on shares of Charles Schwab in a report on Thursday, June 18th. Citigroup reiterated a "market outperform" rating on shares of Charles Schwab in a report on Wednesday. TD Cowen increased their price objective on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Jefferies Financial Group cut their target price on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a research note on Monday, April 6th. Finally, Keefe, Bruyette & Woods assumed coverage on Charles Schwab in a research report on Wednesday, April 8th. They issued an "outperform" rating and a $110.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus price target of $119.76.

Insiders Place Their Bets

In other Charles Schwab news, insider Jonathan S. Beatty sold 2,000 shares of the stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $100.01, for a total value of $200,020.00. Following the sale, the insider owned 13,738 shares of the company's stock, valued at $1,373,937.38. This trade represents a 12.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of Charles Schwab stock in a transaction dated 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 transaction, the director owned 177,508 shares of the company's stock, valued at $16,082,224.80. The trade was a 1.40% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 6,520 shares of company stock valued at $622,392. 6.30% of the stock is currently owned by company insiders.

Charles Schwab Price Performance

Shares of SCHW opened at $101.92 on Friday. The company has a market cap of $177.25 billion, a P/E ratio of 18.53, a PEG ratio of 0.82 and a beta of 0.77. The Charles Schwab Corporation has a fifty-two week low of $83.96 and a fifty-two week high of $107.50. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48. The firm's 50 day moving average price is $93.93 and its 200 day moving average price is $95.39.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, beating the consensus estimate of $1.56 by $0.06. The company had revenue of $7.07 billion during the quarter, compared to analysts' expectations of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.73%. The firm's revenue was up 20.9% compared to the same quarter last year. During the same quarter last year, the company posted $1.14 EPS. On average, research analysts forecast that The Charles Schwab Corporation will post 6.43 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a $0.32 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a yield of 1.3%. Charles Schwab's dividend payout ratio (DPR) is 23.27%.

About Charles Schwab

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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