Invesco Ltd. Boosts Stock Holdings in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Invesco Ltd. increased its shares in The Charles Schwab Corporation by 5% during the first quarter, reaching a total of 15,586,450 shares valued at approximately $1.22 billion.
• The Charles Schwab Corporation reported a strong quarterly earnings of $1.14 EPS, surpassing analyst expectations, with revenue increasing by 24.8% year-over-year.
• Charles Schwab's Board of Directors has authorized a $20 billion stock buyback program, indicating confidence in the company's valuation.

Invesco Ltd. grew its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 5.0% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 15,586,450 shares of the financial services provider's stock after buying an additional 743,906 shares during the period. Invesco Ltd. owned 0.86% of Charles Schwab worth $1,220,107,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of SCHW. Cary Street Partners Financial LLC purchased a new position in shares of Charles Schwab during the 4th quarter valued at approximately $1,455,000. Universal Beteiligungs und Servicegesellschaft mbH increased its holdings in shares of Charles Schwab by 6.2% during the 1st quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock valued at $92,493,000 after purchasing an additional 68,858 shares in the last quarter. Graham Capital Management L.P. increased its holdings in shares of Charles Schwab by 248.3% during the 4th quarter. Graham Capital Management L.P. now owns 112,376 shares of the financial services provider's stock valued at $8,317,000 after purchasing an additional 80,112 shares in the last quarter. World Investment Advisors increased its holdings in shares of Charles Schwab by 7.6% during the 1st quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock valued at $12,760,000 after purchasing an additional 11,505 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its holdings in shares of Charles Schwab by 17.2% during the 1st quarter. State of Alaska Department of Revenue now owns 199,687 shares of the financial services provider's stock valued at $15,631,000 after purchasing an additional 29,255 shares in the last quarter. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Stock Performance

Shares of Charles Schwab stock opened at $97.05 on Friday. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53. The firm has a market capitalization of $176.34 billion, a P/E ratio of 26.09, a P/E/G ratio of 0.92 and a beta of 0.96. The firm's 50 day moving average is $92.15 and its two-hundred day moving average is $84.36. The Charles Schwab Corporation has a 52 week low of $61.16 and a 52 week high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results 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. The business had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.73%. The company's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period last year, the firm posted $0.73 earnings per share. Research analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab announced that its Board of Directors has authorized a stock buyback program on Thursday, July 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 11.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Friday, August 8th will be given a dividend of $0.27 per share. The ex-dividend date is Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Insider Buying and Selling at Charles Schwab

In other news, insider Jonathan M. Craig sold 47,500 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $88.46, for a total transaction of $4,201,850.00. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Peter J. Morgan III sold 10,176 shares of the firm's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $87.39, for a total transaction of $889,280.64. The disclosure for this sale can be found here. In the last quarter, insiders sold 308,016 shares of company stock valued at $29,341,433. 6.30% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SCHW. The Goldman Sachs Group upgraded shares of Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 price objective for the company in a research report on Friday, April 25th. Citigroup upped their target price on shares of Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Cowen reissued a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. JMP Securities raised their target price on shares of Charles Schwab from $106.00 to $110.00 and gave the company a "market outperform" rating in a report on Monday, July 21st. Finally, Morgan Stanley raised their target price on shares of Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. Two 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. According to data from MarketBeat.com, Charles Schwab presently has a consensus rating of "Moderate Buy" and a consensus price target of $99.35.

About Charles Schwab

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.

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