HB Wealth Management LLC Acquires 7,390 Shares of The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• HB Wealth Management LLC increased its stake in The Charles Schwab Corporation by 16.2%, acquiring 7,390 shares for a total of 52,946 shares valued at approximately $4.145 million.
• Charles Schwab reported a quarterly earnings per share (EPS) of $1.14, surpassing analyst expectations of $1.10, with a revenue of $5.85 billion for the quarter.
• The company has initiated a $20 billion stock repurchase plan allowing it to buy back up to 11.6% of its shares, indicating management's belief in the stock's undervaluation.

HB Wealth Management LLC grew its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 16.2% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 52,946 shares of the financial services provider's stock after purchasing an additional 7,390 shares during the quarter. HB Wealth Management LLC's holdings in Charles Schwab were worth $4,145,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the stock. Geode Capital Management LLC lifted its holdings in Charles Schwab by 2.5% during the fourth quarter. Geode Capital Management LLC now owns 30,901,484 shares of the financial services provider's stock worth $2,279,742,000 after acquiring an additional 760,043 shares during the period. Northern Trust Corp lifted its holdings in Charles Schwab by 13.4% during the fourth quarter. Northern Trust Corp now owns 15,739,917 shares of the financial services provider's stock worth $1,164,911,000 after acquiring an additional 1,864,286 shares during the period. Invesco Ltd. lifted its holdings in Charles Schwab by 3.0% during the fourth quarter. Invesco Ltd. now owns 14,842,544 shares of the financial services provider's stock worth $1,098,497,000 after acquiring an additional 430,250 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Charles Schwab by 27.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,653,684 shares of the financial services provider's stock worth $862,489,000 after acquiring an additional 2,511,082 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in Charles Schwab by 5.9% during the first quarter. Bank of New York Mellon Corp now owns 11,056,953 shares of the financial services provider's stock worth $865,538,000 after acquiring an additional 618,101 shares during the period. Institutional investors own 84.38% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Bank of America lifted their price target on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a report on Monday, July 21st. JMP Securities lifted their price target on Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a report on Monday, July 21st. Cowen restated a "buy" rating on shares of Charles Schwab in a research note on Tuesday, May 20th. TD Securities boosted their target price on Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a research note on Tuesday, May 20th. Finally, Piper Sandler boosted their target price on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and sixteen have given a buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $99.35.

Insider Transactions at Charles Schwab

In related news, General Counsel Peter J. Morgan III sold 10,176 shares of the stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $87.39, for a total transaction of $889,280.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Paul V. Woolway sold 10,129 shares of the stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $90.01, for a total value of $911,711.29. Following the sale, the insider owned 39,154 shares of the company's stock, valued at $3,524,251.54. This represents a 20.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 106,754 shares of company stock worth $9,480,253. Company insiders own 6.30% of the company's stock.

Charles Schwab Price Performance

Shares of SCHW traded down $0.12 during midday trading on Thursday, reaching $98.45. The stock had a trading volume of 2,408,917 shares, compared to its average volume of 10,164,414. The company's 50-day moving average is $90.91 and its 200 day moving average is $83.33. The Charles Schwab Corporation has a 12-month low of $61.15 and a 12-month high of $99.59. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $178.88 billion, a price-to-earnings ratio of 26.47, a price-to-earnings-growth ratio of 0.94 and a beta of 0.93.

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

Charles Schwab Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be issued a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date of this dividend is Friday, August 8th. Charles Schwab's payout ratio is currently 29.03%.

Charles Schwab announced that its Board of Directors has authorized a stock repurchase plan on Thursday, July 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors 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.