Eaton Financial Holdings Company LLC Takes $833,000 Position in The Charles Schwab Corporation $SCHW

Key Points

• Eaton Financial Holdings has acquired a new stake in The Charles Schwab Corporation worth approximately $833,000, marking a notable investment in the financial services provider.
• Major institutional investors, including Vanguard Group and Wellington Management, significantly increased their holdings in Charles Schwab during the first quarter of 2023.
• Charles Schwab recently declared a $20 billion stock repurchase program, signaling the board's confidence in the company's valuation and commitment to returning value to shareholders.

Eaton Financial Holdings Company LLC bought a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 9,124 shares of the financial services provider's stock, valued at approximately $833,000.

Other hedge funds also recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Charles Schwab by 15.4% during 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 acquiring an additional 19,817,022 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of Charles Schwab by 595.7% during the first quarter. Wellington Management Group LLP now owns 15,488,777 shares of the financial services provider's stock worth $1,212,461,000 after acquiring 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% during the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock worth $1,096,083,000 after acquiring 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% during the first 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 in the last quarter. Finally, Nuveen LLC purchased a new stake in shares of Charles Schwab during the first quarter worth $440,699,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Up 0.0%

SCHW stock opened at $94.34 on Tuesday. The Charles Schwab Corporation has a twelve month low of $62.41 and a twelve month high of $99.59. The company has a market cap of $171.25 billion, a PE ratio of 25.36, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96. The business's 50-day simple moving average is $95.46 and its 200 day simple moving average is $87.55. 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 released its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.10 by $0.04. The business had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period last year, the business earned $0.73 earnings per share. On average, research analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab declared that its board has authorized a stock repurchase program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Charles Schwab Dividend Announcement

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

Insider Activity at Charles Schwab

In other news, General Counsel Peter J. Morgan III sold 50,016 shares of the firm's stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total value of $4,851,552.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jonathan S. Beatty sold 6,144 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the completion of the sale, the insider owned 11,923 shares of the company's stock, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 267,213 shares of company stock valued at $26,232,180. Corporate insiders own 6.30% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on SCHW. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Piper Sandler raised their target price on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a report on Tuesday, July 15th. JMP Securities boosted their price target on Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Morgan Stanley boosted their price target on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 29th. Finally, Wells Fargo & Company set a $102.00 price target on Charles Schwab and gave the stock an "overweight" rating in a research report on Friday, July 18th. Sixteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Charles Schwab currently has a consensus rating of "Moderate Buy" and a consensus target price of $100.00.

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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