GAMMA Investing LLC Grows Position in The Charles Schwab Corporation $SCHW

Key Points

• GAMMA Investing increased its Charles Schwab position by 20.5% in the second quarter, bringing its holdings to 55,827 shares valued at approximately $5.15 million. Institutional investors collectively own 84.38% of SCHW.
• Charles Schwab reported a strong quarter, with EPS of $1.62 beating estimates of $1.56 and revenue of $7.07 billion exceeding the $6.90 billion consensus; revenue rose 20.9% year over year.
• The company declared a quarterly dividend of $0.32, equal to an annualized $1.28 and a 1.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $121.17, while insiders have sold approximately $37.9 million of shares over the past 90 days.

GAMMA Investing LLC boosted its position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 20.5% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 55,827 shares of the financial services provider's stock after purchasing an additional 9,496 shares during the period. GAMMA Investing LLC's holdings in Charles Schwab were worth $5,151,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Dogwood Wealth Management LLC boosted its position in shares of Charles Schwab by 99.2% during the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock valued at $25,000 after buying an additional 123 shares during the period. Scarborough Advisors LLC purchased a new stake in shares of Charles Schwab in the first quarter worth approximately $29,000. Optima Capital LLC purchased a new stake in shares of Charles Schwab in the fourth quarter worth approximately $30,000. McIlrath & Eck LLC lifted its stake in shares of Charles Schwab by 143.2% during the 4th quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock worth $32,000 after acquiring an additional 189 shares during the last quarter. Finally, Main Street Group LTD bought a new stake in shares of Charles Schwab during the 1st quarter worth approximately $33,000. 84.38% of the stock is owned by hedge funds and other institutional investors.

Charles Schwab Price Performance

Shares of SCHW stock opened at $106.35 on Wednesday. The Charles Schwab Corporation has a 1-year low of $83.96 and a 1-year high of $107.50. The stock's 50-day moving average is $95.98 and its 200 day moving average is $95.51. The company has a market cap of $184.96 billion, a P/E ratio of 19.34, a PEG ratio of 0.81 and a beta of 0.76. 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 posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.06. The company had revenue of $7.07 billion for the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.The firm's quarterly revenue was up 20.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.14 earnings per share. Research analysts predict that The Charles Schwab Corporation will post 6.46 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

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

Analysts Set New Price Targets

SCHW has been the subject of a number of recent analyst reports. Weiss Ratings restated a "buy (b-)" rating on shares of Charles Schwab in a report on Thursday, June 18th. Morgan Stanley increased their target price on Charles Schwab from $133.00 to $136.00 and gave the stock an "overweight" rating in a research note on Monday, July 27th. Keefe, Bruyette & Woods assumed coverage on shares of Charles Schwab in a research note on Wednesday, April 8th. They set an "outperform" rating and a $110.00 target price for the company. Citigroup restated a "market outperform" rating on shares of Charles Schwab in a report on Wednesday, July 22nd. Finally, Compass Point began coverage on shares of Charles Schwab in a report on Monday. They issued a "buy" rating and a $135.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $121.17.

Insider Transactions at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 32,947 shares of the firm's stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $104.01, for a total value of $3,426,817.47. Following the completion of the sale, the insider directly owned 57,972 shares in the company, valued at $6,029,667.72. This trade represents a 36.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dennis Howard sold 28,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $105.01, for a total transaction of $2,940,280.00. Following the completion of the sale, the insider owned 10,470 shares of the company's stock, valued at approximately $1,099,454.70. This trade represents a 72.78% 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. Over the last 90 days, insiders have sold 363,848 shares of company stock worth $37,874,706. 6.30% of the stock is owned by corporate insiders.

More Charles Schwab News

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

• Positive Sentiment: Schwab’s latest quarterly results provided the primary catalyst: earnings per share of $1.62 exceeded the $1.56 consensus estimate, while revenue of $7.07 billion topped expectations of $6.90 billion. Revenue also grew sharply from the prior year, supporting optimism about continued operating momentum. Why Charles Schwab Stock Jumped in July
• Positive Sentiment: Compass Point upgraded Charles Schwab to “strong buy,” adding to bullish analyst sentiment. The firm also recently initiated coverage with a “buy” recommendation, potentially strengthening demand for the shares. Compass initiates coverage of Charles Schwab with Buy recommendation
• Positive Sentiment: Schwab’s third-quarter retail client sentiment report showed investors becoming notably more bullish on U.S. stocks. Stronger confidence could support trading activity and asset flows, although clients still expressed concern that the market may be overvalued. Schwab Q3 Retail Client Sentiment Report
• Positive Sentiment: Orion’s launch of fractional-share trading for advisors using Schwab Advisor Services should make portfolio implementation more efficient, reduce idle cash and improve the platform’s appeal to financial advisors. Orion Introduces Fractional Share Trading for Advisors Who Custody with Schwab Advisor Services
• Neutral Sentiment: Brokerages maintain a “moderate buy” average recommendation, but analysts remain only moderately optimistic after Schwab underperformed the broader market over the past year. Charles Schwab Receives Average Recommendation of Moderate Buy
• Neutral Sentiment: Schwab’s planned $11.7 million Scottsdale office renovation reflects ongoing investment in its operations but is unlikely to materially affect near-term earnings. Charles Schwab To Invest $11.7M In Scottsdale Office Renovations

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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