Junto Capital Management LP Makes New Investment in The Charles Schwab Corporation $SCHW

Key Points

• Junto Capital Management LP has acquired a new stake in The Charles Schwab Corporation, purchasing 1,132,385 shares valued at approximately $88.6 million, making it the fund's 13th largest holding.
• Multiple institutions have recently increased their positions in Schwab, with significant boosts in holdings from firms like Baird Financial Group and Activest Wealth Management during the first quarter of the year.
• Charles Schwab's board has initiated a $20 billion stock buyback program, indicating confidence that its shares are undervalued; the company also declared a quarterly dividend of $0.27 per share.

Junto Capital Management LP purchased a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 1,132,385 shares of the financial services provider's stock, valued at approximately $88,643,000. Charles Schwab accounts for approximately 1.9% of Junto Capital Management LP's holdings, making the stock its 13th largest holding. Junto Capital Management LP owned 0.06% of Charles Schwab as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Cary Street Partners Financial LLC acquired a new position in Charles Schwab in the 4th quarter valued at $1,455,000. Independent Advisor Alliance increased its stake in Charles Schwab by 13.8% in the 1st quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock valued at $3,061,000 after buying an additional 4,754 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in Charles Schwab by 6.2% in 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 buying an additional 68,858 shares during the period. Graham Capital Management L.P. increased its stake in Charles Schwab by 248.3% in 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 buying an additional 80,112 shares during the period. Finally, World Investment Advisors increased its stake in Charles Schwab by 7.6% in the 1st quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock valued at $12,760,000 after buying an additional 11,505 shares during the period. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Stock Down 0.1%

Charles Schwab stock traded down $0.06 during mid-day trading on Wednesday, hitting $96.06. The company's stock had a trading volume of 7,231,003 shares, compared to its average volume of 9,887,014. The firm's 50 day moving average is $94.87 and its 200 day moving average is $86.06. The company has a market cap of $174.36 billion, a PE ratio of 25.82, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. 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 quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.04. The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business's revenue for the quarter was up 24.8% on a year-over-year basis. During the same period in the prior year, the business earned $0.73 EPS. On average, 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 disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were issued a dividend of $0.27 per share. The ex-dividend date of this dividend was 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 is currently 29.03%.

Charles Schwab announced that its Board of Directors has approved a stock buyback plan 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 reacquire up to 11.6% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. TD Securities upped their target price on Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a report on Tuesday, May 20th. Truist Financial boosted their price objective on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Keefe, Bruyette & Woods boosted their price target on Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. Bank of America increased their target price on Charles Schwab from $83.00 to $84.00 and gave the company an "underperform" rating in a research note on Monday, July 21st. Finally, Citigroup boosted their price target on Charles Schwab from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, July 21st. Sixteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Charles Schwab has an average rating of "Moderate Buy" and an average price target of $99.60.

Insider Transactions at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the sale, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. This trade represents a 22.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Paul V. Woolway sold 3,290 shares of Charles Schwab stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $96.06, for a total value of $316,037.40. Following the sale, the insider directly owned 41,188 shares in the company, valued at $3,956,519.28. The trade was a 7.40% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 295,009 shares of company stock worth $28,717,464. Insiders own 6.30% of the company's stock.

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.