Lord Abbett & CO. LLC Has $325.05 Million Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Lord Abbett & CO. LLC increased its stake in The Charles Schwab Corporation by 2.6%, holding approximately $325 million worth of shares, which constitutes 1.2% of its overall investment portfolio.
• Institutional investors collectively own 84.38% of Charles Schwab's stock, with Vanguard Group owning the largest share, valued at around $11.6 billion.
• Charles Schwab recently announced a $20 billion stock repurchase plan and reported a 24.8% increase in quarterly revenue year-over-year, surpassing analysts' expectations.

Lord Abbett & CO. LLC grew its position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 2.6% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 4,152,408 shares of the financial services provider's stock after purchasing an additional 106,556 shares during the period. Charles Schwab comprises about 1.2% of Lord Abbett & CO. LLC's portfolio, making the stock its 11th largest position. Lord Abbett & CO. LLC owned approximately 0.23% of Charles Schwab worth $325,050,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of the company. Cary Street Partners Financial LLC acquired a new stake in shares of Charles Schwab during the fourth quarter worth $1,455,000. Independent Advisor Alliance raised its holdings in shares of Charles Schwab by 13.8% during the first quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock worth $3,061,000 after acquiring an additional 4,754 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in shares of Charles Schwab by 6.2% during the first quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock worth $92,493,000 after acquiring an additional 68,858 shares during the period. Graham Capital Management L.P. raised its holdings in shares of Charles Schwab by 248.3% during the fourth quarter. Graham Capital Management L.P. now owns 112,376 shares of the financial services provider's stock worth $8,317,000 after acquiring an additional 80,112 shares during the period. Finally, World Investment Advisors raised its holdings in shares of Charles Schwab by 7.6% during the first quarter. World Investment Advisors now owns 163,007 shares of the financial services provider's stock worth $12,760,000 after acquiring an additional 11,505 shares during the period. 84.38% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the sale, the chairman owned 590,734 shares in the company, valued at $58,388,148.56. The trade was a 22.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Nigel J. Murtagh sold 24,096 shares of Charles Schwab stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the sale, the insider owned 58,999 shares of the company's stock, valued at $5,776,592.09. This trade represents a 29.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 308,016 shares of company stock worth $29,341,433 in the last quarter. 6.30% of the stock is owned by corporate insiders.

Charles Schwab Stock Performance

Shares of NYSE SCHW traded down $1.75 during mid-day trading on Friday, reaching $96.03. 9,535,466 shares of the company were exchanged, compared to its average volume of 9,194,136. The company's 50-day simple moving average is $93.09 and its 200-day simple moving average is $84.91. The company has a quick ratio of 0.53, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $174.32 billion, a P/E ratio of 25.81, a P/E/G ratio of 0.92 and a beta of 0.96. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted 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 company had revenue of $5.85 billion during the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a net margin of 33.68% and a return on equity of 19.30%. Charles Schwab's quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.73 EPS. As a group, research analysts predict that The Charles Schwab Corporation will post 4.22 earnings per share for the current year.

Charles Schwab announced that its Board of Directors has authorized a stock repurchase program on Thursday, July 24th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

Charles Schwab Dividend Announcement

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

Analyst Ratings Changes

A number of research firms recently weighed in on SCHW. Cowen reaffirmed a "buy" rating on shares of Charles Schwab in a research report on Tuesday, May 20th. Redburn Atlantic raised shares of Charles Schwab from a "sell" rating to a "neutral" rating and raised their target price for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Citigroup raised 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. Truist Financial raised their target price on shares of Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research report on Friday. Finally, Piper Sandler raised their target price on shares of Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research report on Tuesday, July 15th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $99.60.

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.