Maverick Capital Ltd. Acquires New Stake in The Charles Schwab Corporation $SCHW

Key Points

• Maverick Capital Ltd. invested approximately $111.56 million in The Charles Schwab Corporation, acquiring 1,425,125 shares, which now represent about 2.0% of its investment portfolio.
• Charles Schwab announced a quarterly dividend of $0.27 per share, equating to an annualized yield of 1.1%, alongside a $20 billion share repurchase program to buy back up to 11.6% of its stock.
• Recent analyst sentiment is positive with 16 "Buy" ratings and increased price targets from firms like JMP Securities and Truist Financial, with an average target of $99.60 for the stock.

Maverick Capital Ltd. acquired a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 1,425,125 shares of the financial services provider's stock, valued at approximately $111,559,000. Charles Schwab makes up 2.0% of Maverick Capital Ltd.'s holdings, making the stock its 16th biggest holding. Maverick Capital Ltd. owned 0.08% of Charles Schwab as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the company. Focus Partners Advisor Solutions LLC increased its position in shares of Charles Schwab by 106.4% during the first quarter. Focus Partners Advisor Solutions LLC now owns 9,774 shares of the financial services provider's stock worth $765,000 after purchasing an additional 5,039 shares in the last quarter. First Financial Bankshares Inc purchased a new stake in shares of Charles Schwab during the first quarter worth approximately $204,000. FJ Capital Management LLC purchased a new stake in shares of Charles Schwab during the first quarter worth approximately $4,778,000. Flputnam Investment Management Co. increased its position in shares of Charles Schwab by 1.6% during the first quarter. Flputnam Investment Management Co. now owns 332,774 shares of the financial services provider's stock worth $26,050,000 after purchasing an additional 5,356 shares in the last quarter. Finally, Point72 Europe London LLP increased its position in shares of Charles Schwab by 140.6% during the first quarter. Point72 Europe London LLP now owns 220,600 shares of the financial services provider's stock worth $17,269,000 after purchasing an additional 128,900 shares in the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab Trading Down 0.1%

Shares of Charles Schwab stock traded down $0.06 during trading hours on Wednesday, hitting $96.06. The company's stock had a trading volume of 7,261,150 shares, compared to its average volume of 7,386,242. The Charles Schwab Corporation has a twelve month low of $61.16 and a twelve month high of $99.59. The firm has a fifty day moving average of $94.99 and a 200-day moving average of $86.13. The stock has a market cap of $174.36 billion, a price-to-earnings ratio of 25.82, a P/E/G ratio of 0.94 and a beta of 0.96. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The business had revenue of $5.85 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same quarter in the prior year, the company posted $0.73 EPS. The company's quarterly revenue was up 24.8% on a year-over-year basis. Research analysts forecast that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Friday, August 8th were paid a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio is 29.03%.

Charles Schwab announced that its board has initiated a stock buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to reacquire up to 11.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Analyst Ratings Changes

SCHW has been the subject of several research reports. Truist Financial boosted their price target on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research report on Friday, August 15th. TD Securities boosted their price target on Charles Schwab from $95.00 to $113.00 and gave the stock a "buy" rating in a research report on Tuesday, May 20th. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and boosted their price objective for the stock from $65.00 to $82.00 in a research note on Monday, June 9th. Bank of America boosted their price objective on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research note on Monday, July 21st. Finally, Morgan Stanley boosted their price objective on Charles Schwab from $117.00 to $131.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Sixteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $99.60.

Insiders Place Their Bets

In other news, insider Paul V. Woolway sold 10,129 shares of the company's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $90.01, for a total value of $911,711.29. Following the transaction, the insider owned 39,154 shares of the company's stock, valued at $3,524,251.54. This represents a 20.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction on 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. This represents a 22.74% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 298,214 shares of company stock worth $29,022,580. Corporate insiders own 6.30% of the company's stock.

Charles Schwab Company 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.