Entropy Technologies LP Has $14.38 Million Stake in The Charles Schwab Corporation $SCHW

Key Points

• Entropy Technologies LP boosted its Charles Schwab stake by 348.2% in the fourth quarter, ending with 143,912 shares valued at about $14.38 million. Charles Schwab is now the fund’s 22nd-largest holding.
• Charles Schwab reported better-than-expected quarterly results, with EPS of $1.43 versus $1.39 expected and revenue of $6.48 billion versus $6.39 billion estimated. Revenue rose 15.8% year over year, and the company also highlighted strong May activity trends.
• Insider selling and mixed sentiment remain notable: two executives recently sold shares, and insiders have sold 59,700 shares over the last 90 days. Even so, analysts remain broadly constructive, with a consensus rating of Moderate Buy and an average price target of $116.

Entropy Technologies LP increased its holdings in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 348.2% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 143,912 shares of the financial services provider's stock after purchasing an additional 111,802 shares during the quarter. Charles Schwab makes up about 0.8% of Entropy Technologies LP's investment portfolio, making the stock its 22nd biggest holding. Entropy Technologies LP's holdings in Charles Schwab were worth $14,378,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Dogwood Wealth Management LLC boosted its holdings in Charles Schwab by 99.2% during the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock worth $25,000 after purchasing an additional 123 shares during the last quarter. Piscataqua Savings Bank acquired a new position in Charles Schwab during the fourth quarter worth $26,000. GoalVest Advisory LLC acquired a new position in Charles Schwab during the fourth quarter worth $28,000. Beacon Financial Strategies CORP acquired a new stake in Charles Schwab in the fourth quarter valued at $29,000. Finally, Optima Capital LLC acquired a new stake in Charles Schwab in the fourth quarter valued at $30,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Activity

In other news, Director Frank C. Herringer sold 2,520 shares of the 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 transaction, the director directly owned 177,508 shares of the company's stock, valued at $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Nigel J. Murtagh sold 41,297 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the completion of the transaction, the insider directly owned 57,972 shares in the company, valued at $5,739,228. The trade was a 41.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 59,700 shares of company stock valued at $5,889,131 over the last ninety days. 6.30% of the stock is currently owned by company insiders.

Charles Schwab Price Performance

Shares of SCHW opened at $91.04 on Friday. The firm has a market capitalization of $158.32 billion, a PE ratio of 18.06, a PEG ratio of 0.86 and a beta of 0.77. The company's 50-day moving average is $91.05 and its 200-day moving average is $95.25. 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 debt-to-equity ratio of 0.48, a current ratio of 0.62 and a quick ratio of 0.62.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.04. The company had revenue of $6.48 billion for the quarter, compared to analyst estimates of $6.39 billion. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The company's revenue was up 15.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Equities analysts forecast that The Charles Schwab Corporation will post 6.13 EPS for the current year.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Friday, May 8th were given a $0.32 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.28 annualized dividend and a dividend yield of 1.4%. Charles Schwab's dividend payout ratio is presently 25.40%.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

Analyst Ratings Changes

A number of analysts have commented on SCHW shares. UBS Group cut their price target on shares of Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a research note on Wednesday, April 8th. Truist Financial cut their price target on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. JPMorgan Chase & Co. increased their price target on shares of Charles Schwab from $128.00 to $131.00 and gave the company an "overweight" rating in a research note on Friday, April 17th. Raymond James Financial increased their price target on shares of Charles Schwab from $126.00 to $137.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Finally, Piper Sandler increased their price target on shares of Charles Schwab from $103.00 to $105.00 and gave the company a "neutral" rating in a research note on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus target price of $116.00.

Charles Schwab Company Profile

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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