Fiduciary Family Office LLC Buys Shares of 3,075 The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Fiduciary Family Office LLC acquired 3,075 shares of The Charles Schwab Corporation, valued at approximately $241,000, in its first quarter filing with the SEC.
• A significant portion of Schwab's stock is owned by institutional investors and hedge funds, accounting for 84.38% of the company's shares.
• Charles Schwab announced a $20 billion stock buyback plan, indicating that its leadership believes the company's stock is undervalued.

Fiduciary Family Office LLC bought a new stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 3,075 shares of the financial services provider's stock, valued at approximately $241,000.

A number of other hedge funds have also made changes to their positions in SCHW. Vanguard Group Inc. grew its position in shares of Charles Schwab by 15.4% in the first quarter. Vanguard Group Inc. now owns 148,395,252 shares of the financial services provider's stock valued at $11,616,380,000 after purchasing an additional 19,817,022 shares in the last quarter. Primecap Management Co. CA grew its position in shares of Charles Schwab by 229.3% in the first quarter. Primecap Management Co. CA now owns 14,002,078 shares of the financial services provider's stock valued at $1,096,083,000 after purchasing an additional 9,749,728 shares in the last quarter. Kovitz Investment Group Partners LLC grew its position in shares of Charles Schwab by 354.5% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 11,005,881 shares of the financial services provider's stock valued at $814,545,000 after purchasing an additional 8,584,173 shares in the last quarter. Marshall Wace LLP grew its position in shares of Charles Schwab by 742.0% in the fourth quarter. Marshall Wace LLP now owns 4,181,202 shares of the financial services provider's stock valued at $309,451,000 after purchasing an additional 3,684,640 shares in the last quarter. Finally, PointState Capital LP purchased a new stake in shares of Charles Schwab in the fourth quarter valued at approximately $237,280,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Keefe, Bruyette & Woods upped their price target on Charles Schwab from $102.00 to $108.00 and gave the company an "outperform" rating in a research report on Monday, July 21st. William Blair lowered Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. UBS Group increased their price objective on Charles Schwab from $95.00 to $96.00 and gave the stock a "buy" rating in a research report on Tuesday, April 22nd. Bank of America increased their price objective on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research report on Monday, July 21st. Finally, Barclays increased their price objective on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have given a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $99.35.

Insiders Place Their Bets

In related news, insider Paul V. Woolway sold 3,290 shares of the business's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $96.06, for a total value of $316,037.40. Following the transaction, the insider owned 41,188 shares in the company, valued at $3,956,519.28. The trade was a 7.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the transaction, the chairman owned 590,734 shares in the company, 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. In the last 90 days, insiders sold 308,016 shares of company stock valued at $29,341,433. 6.30% of the stock is owned by company insiders.

Charles Schwab Trading Up 1.1%

SCHW opened at $97.05 on Friday. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59. The business has a fifty day simple moving average of $92.15 and a 200-day simple moving average of $84.38. The firm has a market cap of $176.34 billion, a P/E ratio of 26.09, a P/E/G ratio of 0.93 and a beta of 0.96. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, topping the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. The business had revenue of $5.85 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same period last year, the business posted $0.73 earnings per share. The company's quarterly revenue was up 24.8% on a year-over-year basis. On average, equities analysts expect that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Announces Dividend

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

Charles Schwab declared that its Board of Directors has initiated a stock buyback plan on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

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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