FJ Capital Management LLC Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• FJ Capital Management LLC invested approximately $4.78 million in The Charles Schwab Corporation, acquiring 61,043 shares of the company.
• Charles Schwab has been rated with a consensus of "Moderate Buy" and maintains a consensus price target of $99.60, with 16 analysts recommending a buy rating.
• The company announced a $20 billion stock buyback program, signaling confidence in the undervaluation of its shares.

FJ Capital Management LLC purchased a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 61,043 shares of the financial services provider's stock, valued at approximately $4,778,000.

A number of other large investors have also added to or reduced their stakes in the stock. Flputnam Investment Management Co. grew its position in Charles Schwab by 1.6% during the first quarter. Flputnam Investment Management Co. now owns 332,774 shares of the financial services provider's stock worth $26,050,000 after buying an additional 5,356 shares in the last quarter. Point72 Europe London LLP grew its position in Charles Schwab by 140.6% during the first quarter. Point72 Europe London LLP now owns 220,600 shares of the financial services provider's stock worth $17,269,000 after buying an additional 128,900 shares in the last quarter. Beck Mack & Oliver LLC grew its position in Charles Schwab by 2.3% during the first quarter. Beck Mack & Oliver LLC now owns 2,171,570 shares of the financial services provider's stock worth $169,990,000 after buying an additional 48,359 shares in the last quarter. Retirement Planning Co of New England Inc. grew its position in Charles Schwab by 5.5% during the first quarter. Retirement Planning Co of New England Inc. now owns 4,076 shares of the financial services provider's stock worth $319,000 after buying an additional 214 shares in the last quarter. Finally, Calton & Associates Inc. acquired a new stake in Charles Schwab during the first quarter worth approximately $250,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Trading Down 0.1%

NYSE:SCHW traded down $0.06 during trading hours on Wednesday, hitting $96.06. 7,261,150 shares of the company were exchanged, compared to its average volume of 7,386,242. The stock has a market capitalization of $174.36 billion, a price-to-earnings ratio of 25.82, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a one year low of $61.16 and a one year high of $99.59. The company has a fifty day simple moving average of $94.99 and a 200 day simple moving average of $86.13.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping 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 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 company earned $0.73 EPS. Charles Schwab's revenue for the quarter was up 24.8% compared to the same quarter last year. Sell-side analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 24th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 11.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Charles Schwab Dividend Announcement

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

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Paul V. Woolway sold 10,129 shares of Charles Schwab stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total transaction of $911,711.29. Following the transaction, the insider owned 39,154 shares of the company's stock, valued at $3,524,251.54. This trade represents a 20.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of Charles Schwab stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 298,214 shares of company stock worth $29,022,580. 6.30% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

SCHW has been the topic of a number of analyst reports. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and increased their price target for the stock from $65.00 to $82.00 in a research report on Monday, June 9th. Truist Financial raised their target price on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a report on Friday, August 15th. Citigroup raised their target price on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, July 21st. William Blair downgraded Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Finally, Bank of America raised their target price on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a report on Monday, July 21st. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $99.60.

Charles Schwab 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.