Farther Finance Advisors LLC Boosts Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Farther Finance Advisors LLC increased its holdings in The Charles Schwab Corporation by 18.8% during Q2, now owning nearly 17,000 shares valued at approximately $1.55 million.
• Charles Schwab's recent quarterly earnings report indicated an EPS of $1.14, exceeding estimates and showcasing a revenue growth of 24.8% year over year.
• The company announced a quarterly dividend of $0.27 per share and initiated a $20 billion stock buyback plan, indicating confidence in its stock valuation.

Farther Finance Advisors LLC boosted its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 18.8% in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 16,952 shares of the financial services provider's stock after buying an additional 2,677 shares during the quarter. Farther Finance Advisors LLC's holdings in Charles Schwab were worth $1,547,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Bain Capital Public Equity Management II LLC purchased a new position in Charles Schwab in the 1st quarter worth about $79,605,000. Independent Advisor Alliance grew its stake in shares of Charles Schwab by 13.8% during the 1st quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock valued at $3,061,000 after purchasing an additional 4,754 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH grew its stake in shares of Charles Schwab by 6.2% during the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock valued at $92,493,000 after acquiring an additional 68,858 shares during the period. United Services Automobile Association grew its stake in shares of Charles Schwab by 14.1% during the 1st quarter. United Services Automobile Association now owns 39,512 shares of the financial services provider's stock valued at $3,074,000 after acquiring an additional 4,869 shares during the period. Finally, World Investment Advisors grew its stake in shares of Charles Schwab by 7.6% during the 1st quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock valued at $12,760,000 after acquiring an additional 11,505 shares during the period. Hedge funds and other institutional investors own 84.38% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Zacks Research downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 17th. Truist Financial upped their price target on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Morgan Stanley upped their price target on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Citigroup upped their price target on Charles Schwab from $105.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Finally, Keefe, Bruyette & Woods upped their price target on Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $100.00.

Charles Schwab Trading Down 0.6%

Shares of SCHW opened at $93.89 on Wednesday. The company's fifty day moving average is $95.50 and its 200 day moving average is $87.59. The Charles Schwab Corporation has a fifty-two week low of $62.41 and a fifty-two week high of $99.59. The stock has a market capitalization of $170.43 billion, a PE ratio of 25.24, a P/E/G ratio of 0.93 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $5.64 billion. During the same quarter in the prior year, the firm posted $0.73 EPS. Charles Schwab's quarterly revenue was up 24.8% compared to the same quarter last year. Sell-side analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a $0.27 dividend. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

Charles Schwab declared that its Board of Directors has approved a stock repurchase plan on Thursday, July 24th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

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 transaction, the insider owned 11,923 shares in the company, valued at approximately $1,154,265.63. This trade represents a 34.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider owned 58,999 shares in the company, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 267,213 shares of company stock valued at $26,232,180. Insiders own 6.30% of the company's stock.

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.

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