Flossbach Von Storch SE Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Flossbach Von Storch SE bought 10.7 million Charles Schwab shares worth approximately $988 million, making SCHW 4.5% of its portfolio and its sixth-largest holding.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $121.17. Schwab recently exceeded quarterly expectations with $1.62 in EPS and $7.07 billion in revenue, up 20.9% year over year.
• SCHW traded near its 52-week high at $110.78, while the company declared a quarterly dividend of $0.32 per share. However, recent insider selling and a price-to-earnings ratio above 20 may raise valuation concerns.

Flossbach Von Storch SE bought a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 10,706,944 shares of the financial services provider's stock, valued at approximately $987,930,000. Charles Schwab accounts for 4.5% of Flossbach Von Storch SE's holdings, making the stock its 6th largest holding. Flossbach Von Storch SE owned approximately 0.62% of Charles Schwab as of its most recent SEC filing.

A number of other large investors have also modified their holdings of SCHW. Dogwood Wealth Management LLC boosted its holdings in Charles Schwab by 99.2% in the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock worth $25,000 after acquiring an additional 123 shares during the period. Scarborough Advisors LLC purchased a new stake in shares of Charles Schwab during the first quarter valued at approximately $29,000. McIlrath & Eck LLC lifted its position in shares of Charles Schwab by 143.2% during the fourth quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock worth $32,000 after purchasing an additional 189 shares in the last quarter. Main Street Group LTD acquired a new position in shares of Charles Schwab during the first quarter worth $33,000. Finally, Newbridge Financial Services Group Inc. boosted its stake in shares of Charles Schwab by 233.6% in the third quarter. Newbridge Financial Services Group Inc. now owns 357 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 250 shares during the period. Institutional investors and hedge funds own 84.38% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on SCHW shares. Raymond James Financial reaffirmed an "outperform" rating and set a $145.00 price target on shares of Charles Schwab in a report on Wednesday, July 22nd. Zacks Research raised shares of Charles Schwab from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 9th. Citigroup restated a "market outperform" rating on shares of Charles Schwab in a research note on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Finally, Morgan Stanley boosted their price target on Charles Schwab from $133.00 to $136.00 and gave the stock an "overweight" rating in a research note on Monday, July 27th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $121.17.

More Charles Schwab News

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

• Positive Sentiment: Schwab opened its first India global capability centre in Hyderabad and plans to expand it to approximately 2,000 employees by the end of 2027. The technology and engineering hub could improve operating efficiency, support artificial-intelligence initiatives and help protect long-term margins. Charles Schwab India investment article
• Positive Sentiment: July client assets increased 19% year over year to $13.04 trillion. Higher net new assets and trading activity point to continued revenue growth and reinforce the momentum behind Schwab’s recent earnings performance. Schwab July client assets
• Positive Sentiment: The stock’s recent strength has been supported by record asset inflows, expanding margins and strong earnings momentum. Schwab’s latest quarterly results exceeded consensus, with $1.62 EPS and $7.07 billion of revenue, up 20.9% year over year. Schwab reaches 52-week high
• Neutral Sentiment: Schwab raised $2.6 billion through fixed-to-floating-rate notes and expanded its product lineup with cash-settled single-stock futures. The capital supports flexibility, while the new derivatives could increase engagement but face adoption and liquidity uncertainty. Schwab capital raise and product expansion
• Negative Sentiment: Two insiders sold shares recently: Jonathan Beatty sold 1,000 shares for about $111,330, and Dennis Howard sold 2,198 shares for approximately $241,780. The trades were small relative to Schwab’s market value and were conducted under pre-arranged plans, but they may add caution near record levels. Schwab insider sales
• Negative Sentiment: At roughly 20 times earnings, SCHW is no longer an obvious bargain after a 106% three-year advance. Investors may be taking profits while assessing whether future growth can justify the elevated valuation and continued expense growth. Schwab valuation analysis

Charles Schwab Trading Down 0.8%

SCHW opened at $110.78 on Thursday. The Charles Schwab Corporation has a 12-month low of $83.96 and a 12-month high of $112.20. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.64 and a quick ratio of 0.64. The stock has a market capitalization of $191.57 billion, a PE ratio of 20.14, a P/E/G ratio of 0.85 and a beta of 0.76. The firm's fifty day moving average price is $100.75 and its 200 day moving average price is $96.00.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.06. The company had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The firm's revenue for the quarter was up 20.9% compared to the same quarter last year. During the same period last year, the business earned $1.14 EPS. As a group, research analysts expect that The Charles Schwab Corporation will post 6.46 EPS for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a dividend of $0.32 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.28 annualized dividend and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is presently 23.27%.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 32,947 shares of the company's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $104.01, for a total transaction of $3,426,817.47. Following the sale, the insider owned 57,972 shares in the company, valued at $6,029,667.72. This represents a 36.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula A. Sneed sold 5,263 shares of Charles Schwab stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $107.15, for a total value of $563,930.45. Following the completion of the transaction, the director owned 91,711 shares of the company's stock, valued at approximately $9,826,833.65. The trade was a 5.43% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 398,984 shares of company stock valued at $41,699,569. Corporate insiders own 6.30% of the company's stock.

Charles Schwab 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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