DRW Securities LLC Purchases 22,366 Shares of The Charles Schwab Corporation $SCHW

Key Points

• DRW Securities LLC increased its stake in The Charles Schwab Corporation by 173.4%, acquiring an additional 22,366 shares and bringing its total holdings to 35,262 shares valued at $2.76 million.
• The Charles Schwab Corporation reported $1.14 EPS for the last quarter, exceeding the consensus estimate of $1.10, indicating a 24.8% increase in revenue year-over-year.
• Charles Schwab's board approved a $20 billion share buyback program, allowing the company to repurchase up to 11.6% of its shares, signaling confidence in its stock's valuation.

DRW Securities LLC boosted its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 173.4% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 35,262 shares of the financial services provider's stock after purchasing an additional 22,366 shares during the period. DRW Securities LLC's holdings in Charles Schwab were worth $2,760,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Brighton Jones LLC increased its holdings 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 acquiring an additional 19,195 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Charles Schwab by 231.0% during the 4th quarter. AQR Capital Management LLC now owns 296,978 shares of the financial services provider's stock valued at $21,979,000 after buying an additional 207,263 shares during the last quarter. AlTi Global Inc. lifted its position in shares of Charles Schwab by 162.0% during the 4th quarter. AlTi Global Inc. now owns 52,617 shares of the financial services provider's stock valued at $3,915,000 after buying an additional 32,531 shares during the last quarter. AXA S.A. grew its position in shares of Charles Schwab by 46.5% in the fourth quarter. AXA S.A. now owns 234,160 shares of the financial services provider's stock valued at $17,330,000 after purchasing an additional 74,350 shares in the last quarter. Finally, Atalanta Sosnoff Capital LLC increased its position in shares of Charles Schwab by 41.4% during the fourth quarter. Atalanta Sosnoff Capital LLC now owns 788,005 shares of the financial services provider's stock valued at $58,320,000 after buying an additional 230,785 shares during the period. 84.38% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $96.81, for a total transaction of $594,800.64. Following the completion of the transaction, the insider directly owned 11,923 shares in the company, valued at $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction 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 trade represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 295,009 shares of company stock valued at $28,717,464. 6.30% of the stock is currently owned by insiders.

Charles Schwab Stock Down 0.1%

NYSE SCHW traded down $0.06 during trading hours on Wednesday, reaching $96.06. 7,261,150 shares of the company's stock traded hands, compared to its average volume of 7,386,242. The Charles Schwab Corporation has a 52-week low of $61.16 and a 52-week high of $99.59. The firm has a market cap of $174.36 billion, a PE ratio of 24.20, a PEG ratio of 0.94 and a beta of 0.96. The firm has a 50-day simple moving average of $94.87 and a 200 day simple moving average of $86.06. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data 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 return on equity of 19.30% and a net margin of 33.68%.The company had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same quarter last year, the company earned $0.73 EPS. The firm's revenue for the quarter was up 24.8% on a year-over-year basis. Sell-side analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its board has approved a stock repurchase program on Thursday, July 24th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Charles Schwab Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a dividend of $0.27 per share. The ex-dividend date was Friday, August 8th. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Analysts Set New Price Targets

SCHW has been the topic of a number of research analyst reports. Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Barclays raised their price target on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Raymond James Financial reissued an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a research report on Friday, July 18th. Piper Sandler upped their price objective on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Finally, Redburn Atlantic upgraded shares of Charles Schwab from a "sell" rating to a "neutral" rating and increased their target price for the stock from $65.00 to $82.00 in a report on Monday, June 9th. Sixteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $99.60.

About Charles Schwab

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.