Hsbc Holdings PLC Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• HSBC Holdings bought 67,802 Charles Schwab shares worth approximately $15.4 million in the second quarter, joining several other institutions that increased their positions. Institutional investors now own 84.38% of SCHW.
• Charles Schwab reported stronger-than-expected quarterly results, with EPS of $1.62 and revenue of $7.07 billion, up 20.9% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $121.17.
• Insider selling and competitive pressure remain concerns: insiders sold 575,194 shares worth about $61.7 million over the past three months, while Vanguard’s acquisition of Altruist could intensify competition for independent-advisor and custody assets.

Hsbc Holdings PLC purchased a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 67,802 shares of the financial services provider's stock, valued at approximately $15,358,000.

Several other large investors also recently added to or reduced their stakes in SCHW. Primecap Management Co. CA bought a new stake in shares of Charles Schwab in the second quarter valued at approximately $60,523,000. Canada Pension Plan Investment Board bought a new position in Charles Schwab in the 2nd quarter worth approximately $249,000. Castleark Management LLC purchased a new position in Charles Schwab in the 2nd quarter valued at approximately $8,175,000. Lakewood Capital Management LP purchased a new position in Charles Schwab in the 2nd quarter valued at approximately $30,390,000. Finally, Legal & General Group Plc bought a new stake in Charles Schwab during the 2nd quarter valued at $23,231,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Key Charles Schwab News

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

• Positive Sentiment: Schwab plans to expand Schwab Crypto beyond Bitcoin and Ethereum by adding Solana, Avalanche and Chainlink in the coming months. The broader digital-asset lineup could attract new clients, increase engagement and create additional trading-related revenue opportunities. Charles Schwab to add Solana, Avalanche and Chainlink to crypto platform
• Positive Sentiment: OneVest has gone live on Schwab’s Digital Account Opening API, including a headless integration option. The partnership broadens Schwab’s fintech connectivity and could strengthen its custody and advisor-technology platform. OneVest Goes Live on Schwab's Digital Account Opening API
• Neutral Sentiment: Schwab is publishing guidance on retirement withdrawals and other savings “money traps.” The content may support customer trust and financial education, but it is unlikely to materially affect near-term earnings. Schwab says one common 401(k) withdrawal habit raises taxes
• Negative Sentiment: Vanguard’s $4 billion Altruist acquisition could intensify competition for independent advisors and custody assets, potentially increasing Schwab’s technology spending and pricing pressure. Vanguard Takes On Fidelity, Charles Schwab With $4 Billion Altruist Deal
• Negative Sentiment: Chairman Walter Bettinger sold 176,210 SCHW shares for approximately $20 million, reducing his ownership by 22.4%. The sizable disclosed sale may reinforce investor caution, particularly after the stock’s strong rally and recent high. SEC insider transaction filing
• Negative Sentiment: Schwab remains sensitive to interest-rate expectations and bank-sweep balances. Recent macro uncertainty and profit-taking after strong earnings appear to be outweighing the potential near-term benefit from its crypto expansion.

Insider Transactions at Charles Schwab

In other news, insider Dennis Howard sold 28,000 shares of the stock in a transaction dated 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 directly owned 10,470 shares in the company, valued at approximately $1,099,454.70. This represents a 72.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula A. Sneed sold 5,263 shares of the firm's stock in a transaction dated 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 sale, the director directly owned 91,711 shares in the company, valued at $9,826,833.65. The trade was a 5.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 575,194 shares of company stock valued at $61,697,642. Company insiders own 6.30% of the company's stock.

Charles Schwab Trading Down 1.2%

Shares of SCHW opened at $108.09 on Friday. The firm's 50 day simple moving average is $103.05 and its 200 day simple moving average is $96.29. 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 company has a market capitalization of $186.93 billion, a P/E ratio of 19.65, a P/E/G ratio of 0.82 and a beta of 0.76. The Charles Schwab Corporation has a 1-year low of $83.96 and a 1-year high of $114.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share (EPS) 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 company 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 EPS. The firm's revenue was up 20.9% compared to the same quarter last year. Sell-side analysts forecast 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 declared 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 of this dividend is Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.2%. Charles Schwab's dividend payout ratio is presently 23.27%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on SCHW. TD Cowen increased their target price on Charles Schwab from $108.00 to $109.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Compass Point began coverage on Charles Schwab in a research report on Monday, August 3rd. They issued a "buy" rating and a $135.00 price target for the company. Argus boosted their price objective on Charles Schwab from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Piper Sandler set a $118.00 price objective on Charles Schwab in a report on Tuesday, July 21st. Finally, Raymond James Financial restated an "outperform" rating and issued a $145.00 target price on shares of Charles Schwab in a research note on Wednesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have issued 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 an average target price of $121.17.

About Charles Schwab

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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