Johnson Investment Counsel Inc. Raises Holdings in The Charles Schwab Corporation $SCHW

Key Points

• Johnson Investment Counsel Inc. increased its holdings in The Charles Schwab Corporation by 13.7%, acquiring a total of 38,675 shares valued at approximately $3.53 million.
• Charles Schwab reported earnings of $1.14 per share, exceeding estimates, and had a revenue of $5.85 billion for the latest quarter, which represents a 24.8% increase year-over-year.
• The company also authorized a $20 billion share buyback program, which suggests that management believes its stock is currently undervalued.

Johnson Investment Counsel Inc. lifted its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 13.7% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 38,675 shares of the financial services provider's stock after purchasing an additional 4,659 shares during the quarter. Johnson Investment Counsel Inc.'s holdings in Charles Schwab were worth $3,529,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. RMG Wealth Management LLC bought a new stake in shares of Charles Schwab in the second quarter worth about $27,000. Westside Investment Management Inc. increased its holdings in shares of Charles Schwab by 75.0% in the first quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after purchasing an additional 150 shares during the last quarter. CBIZ Investment Advisory Services LLC increased its holdings in shares of Charles Schwab by 97.9% in the first quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider's stock worth $30,000 after purchasing an additional 191 shares during the last quarter. Stone House Investment Management LLC bought a new stake in shares of Charles Schwab in the first quarter worth about $31,000. Finally, Activest Wealth Management increased its position in Charles Schwab by 6,650.0% in the first quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock worth $32,000 after purchasing an additional 399 shares during the last quarter. 84.38% of the stock is owned by institutional investors.

Charles Schwab Trading Down 2.1%

SCHW stock opened at $92.08 on Monday. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The Charles Schwab Corporation has a twelve month low of $65.88 and a twelve month high of $99.59. The stock has a market capitalization of $167.15 billion, a price-to-earnings ratio of 24.75, a price-to-earnings-growth ratio of 0.89 and a beta of 0.97. The firm's fifty day simple moving average is $94.97 and its two-hundred day simple moving average is $89.19.

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 for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. The business had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same quarter in the previous year, the business posted $0.73 earnings per share. The business's revenue was up 24.8% compared to the same quarter last year. As a group, analysts anticipate that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. Charles Schwab's dividend payout ratio is presently 29.03%.

Charles Schwab declared that its board has approved a share buyback program on Thursday, July 24th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

SCHW has been the topic of several research reports. William Blair cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. Truist Financial set a $112.00 price target on shares of Charles Schwab in a research report on Thursday, October 2nd. Piper Sandler boosted their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 15th. BMO Capital Markets initiated coverage on shares of Charles Schwab in a research report on Friday, October 3rd. They issued an "outperform" rating and a $110.00 price target on the stock. Finally, Barclays restated an "overweight" rating and issued a $114.00 price target on shares of Charles Schwab in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $100.57.

Insider Transactions at Charles Schwab

In other news, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $97.91, for a total value of $2,359,239.36. Following the transaction, the insider directly owned 58,999 shares in the company, valued at approximately $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Peter J. Morgan III sold 50,016 shares of the company's stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $97.00, for a total transaction of $4,851,552.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 267,128 shares of company stock valued at $26,232,077. Company insiders own 6.30% of the company's stock.

Charles Schwab 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.

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