Madison Asset Management LLC Takes Position in The Charles Schwab Corporation $SCHW

Key Points

• Madison Asset Management acquired 847,868 Charles Schwab shares worth approximately $78.2 million, while institutional investors overall own 84.38% of SCHW.
• Charles Schwab reported quarterly EPS of $1.62, beating estimates by $0.06, and revenue of $7.07 billion, up 20.9% year over year. Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $121.17.
• Shares opened at $110.78 near their 52-week high, while insiders sold roughly $41.7 million of stock over the past 90 days. The company also declared a quarterly dividend of $0.32 per share, representing a 1.2% yield.

Madison Asset Management LLC bought a new position in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 847,868 shares of the financial services provider's stock, valued at approximately $78,233,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of SCHW. Dogwood Wealth Management LLC raised its position in shares of Charles Schwab by 99.2% in the 4th quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock valued at $25,000 after buying an additional 123 shares in the last quarter. Scarborough Advisors LLC bought a new position in Charles Schwab in the first quarter valued at approximately $29,000. McIlrath & Eck LLC raised its position in Charles Schwab by 143.2% during the fourth quarter. McIlrath & Eck LLC now owns 321 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 189 shares in the last quarter. Main Street Group LTD bought a new stake in Charles Schwab during the first quarter worth $33,000. Finally, Newbridge Financial Services Group Inc. boosted its holdings in shares of Charles Schwab by 233.6% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 357 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 250 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Insider Transactions at Charles Schwab

In other news, General Counsel Peter J. Morgan III sold 6,952 shares of the company's stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $102.03, for a total value of $709,312.56. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Chairman Walter W. Bettinger sold 192,488 shares of Charles Schwab stock in a transaction on Monday, July 27th. The stock was sold at an average price of $103.90, for a total transaction of $19,999,503.20. Following the transaction, the chairman directly owned 529,346 shares of the company's stock, valued at $54,999,049.40. This represents a 26.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 398,984 shares of company stock worth $41,699,569. Company insiders own 6.30% of the company's stock.

Charles Schwab Stock Performance

NYSE SCHW opened at $110.78 on Thursday. The company has a market capitalization of $191.57 billion, a price-to-earnings ratio of 20.14, a PEG ratio of 0.85 and a beta of 0.76. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52. The Charles Schwab Corporation has a twelve month low of $83.96 and a twelve month high of $112.20. The stock has a fifty day simple moving average of $100.75 and a 200 day simple moving average of $96.00.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 EPS for the quarter, beating analysts' consensus estimates of $1.56 by $0.06. The firm had revenue of $7.07 billion for the quarter, compared to analyst estimates of $6.90 billion. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%.The business's revenue was up 20.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.14 EPS. Sell-side analysts expect that The Charles Schwab Corporation will post 6.46 EPS for the current year.

Charles Schwab Announces Dividend

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 issued a dividend of $0.32 per share. The ex-dividend date is Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.2%. Charles Schwab's dividend payout ratio (DPR) is presently 23.27%.

Charles Schwab News Roundup

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

• Positive Sentiment: Schwab opened its first India global capability centre in Hyderabad and plans to expand it to approximately 2,000 employees by the end of 2027. The technology and engineering hub could improve operating efficiency, support artificial-intelligence initiatives and help protect long-term margins. Charles Schwab India investment article
• Positive Sentiment: July client assets increased 19% year over year to $13.04 trillion. Higher net new assets and trading activity point to continued revenue growth and reinforce the momentum behind Schwab’s recent earnings performance. Schwab July client assets
• Positive Sentiment: The stock’s recent strength has been supported by record asset inflows, expanding margins and strong earnings momentum. Schwab’s latest quarterly results exceeded consensus, with $1.62 EPS and $7.07 billion of revenue, up 20.9% year over year. Schwab reaches 52-week high
• Neutral Sentiment: Schwab raised $2.6 billion through fixed-to-floating-rate notes and expanded its product lineup with cash-settled single-stock futures. The capital supports flexibility, while the new derivatives could increase engagement but face adoption and liquidity uncertainty. Schwab capital raise and product expansion
• Negative Sentiment: Two insiders sold shares recently: Jonathan Beatty sold 1,000 shares for about $111,330, and Dennis Howard sold 2,198 shares for approximately $241,780. The trades were small relative to Schwab’s market value and were conducted under pre-arranged plans, but they may add caution near record levels. Schwab insider sales
• Negative Sentiment: At roughly 20 times earnings, SCHW is no longer an obvious bargain after a 106% three-year advance. Investors may be taking profits while assessing whether future growth can justify the elevated valuation and continued expense growth. Schwab valuation analysis

Analyst Ratings Changes

SCHW has been the topic of several research analyst reports. Morgan Stanley raised their price objective on Charles Schwab from $133.00 to $136.00 and gave the company an "overweight" rating in a research note on Monday, July 27th. Citigroup restated a "market outperform" rating on shares of Charles Schwab in a research note on Wednesday, July 22nd. UBS Group set a $135.00 price objective on shares of Charles Schwab in a research report on Monday, August 3rd. Piper Sandler set a $118.00 price objective on shares of Charles Schwab in a research note on Tuesday, July 21st. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $145.00 target price on shares of Charles Schwab in a research note on Wednesday, July 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $121.17.

Charles Schwab Profile

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.

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