Great Lakes Advisors LLC Invests $7.20 Million in The Charles Schwab Corporation $SCHW

Key Points

• Great Lakes Advisors initiated a $7.2 million Charles Schwab position in the second quarter, while other institutions—including BlackRock and Danske Bank—also added shares. Institutional investors now own 84.38% of SCHW.
• Charles Schwab exceeded quarterly expectations with $1.62 in EPS and $7.07 billion in revenue, up 20.9% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $121.17.
• SCHW traded near its 52-week high at $110.78, supported by strong client-asset growth and earnings momentum, but its valuation and recent insider selling could temper further upside. The company also declared a quarterly dividend of $0.32 per share, yielding approximately 1.2%.

Great Lakes Advisors LLC purchased a new stake 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. The institutional investor purchased 78,029 shares of the financial services provider's stock, valued at approximately $7,200,000.

A number of other hedge funds also recently made changes to their positions in the business. Danske Bank A S acquired a new position in Charles Schwab in the second quarter worth about $145,950,000. Wealthfront Advisers LLC acquired a new stake in shares of Charles Schwab in the 2nd quarter valued at $390,000. Global Strategic Investment Solutions LLC bought a new stake in shares of Charles Schwab in the 2nd quarter worth about $612,000. Meeder Advisory Services Inc. bought a new stake in shares of Charles Schwab in the 2nd quarter worth about $321,000. Finally, BlackRock Inc. acquired a new stake in shares of Charles Schwab during the 2nd quarter worth about $861,475,000. Institutional investors and hedge funds own 84.38% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have commented on SCHW. Morgan Stanley boosted their price target on shares of Charles Schwab from $133.00 to $136.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Argus raised their price objective on shares of Charles Schwab from $108.00 to $114.00 and gave the stock a "buy" rating in a report on Thursday, July 23rd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Charles Schwab in a research note on Thursday, June 18th. Wolfe Research reissued an "outperform" rating and issued a $127.00 target price on shares of Charles Schwab in a report on Tuesday, July 21st. Finally, Piper Sandler set a $118.00 price target on Charles Schwab in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $121.17.

Charles Schwab Stock Down 0.8%

Shares of NYSE SCHW opened at $110.78 on Thursday. The Charles Schwab Corporation has a 1 year low of $83.96 and a 1 year high of $112.20. The firm's 50-day moving average is $100.75 and its 200-day moving average is $96.00. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $191.57 billion, a PE ratio of 20.14, a price-to-earnings-growth ratio of 0.85 and a beta of 0.76.

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

Charles Schwab Dividend Announcement

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

Key Headlines Impacting Charles Schwab

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

Insider Activity at Charles Schwab

In related news, insider Nigel J. Murtagh sold 24,778 shares of Charles Schwab stock in a transaction on Monday, August 10th. The stock was sold at an average price of $109.01, for a total transaction of $2,701,049.78. Following the completion of the sale, the insider directly owned 57,972 shares of the company's stock, valued at $6,319,527.72. The trade was a 29.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Walter W. Bettinger sold 93,408 shares of the business's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $104.64, for a total value of $9,774,213.12. Following the transaction, the chairman owned 529,346 shares of the company's stock, valued at $55,390,765.44. The trade was a 15.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 398,984 shares of company stock worth $41,699,569. 6.30% of the stock is owned by company insiders.

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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