Mitsubishi UFJ Asset Management Co. Ltd. Raises Holdings in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in The Charles Schwab Corporation by 25.2%, owning approximately 3,051,717 shares valued at approximately $238.89 million as of the latest filing.
• The Charles Schwab Corporation's quarterly earnings report showed an EPS of $1.14, beating analyst expectations and reflecting a year-over-year revenue increase of 24.8%.
• Charles Schwab's Board of Directors has authorized a $20 billion stock buyback program, indicating confidence in the company's valuation as they plan to repurchase up to 11.6% of its outstanding shares.

Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 25.2% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,051,717 shares of the financial services provider's stock after purchasing an additional 613,279 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.17% of Charles Schwab worth $238,888,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently bought and sold shares of SCHW. Y.D. More Investments Ltd lifted its holdings in shares of Charles Schwab by 14.0% in the 1st quarter. Y.D. More Investments Ltd now owns 2,104 shares of the financial services provider's stock worth $165,000 after acquiring an additional 259 shares during the last quarter. Ironwood Investment Counsel LLC lifted its stake in Charles Schwab by 3.1% during the 1st quarter. Ironwood Investment Counsel LLC now owns 133,361 shares of the financial services provider's stock worth $10,440,000 after acquiring an additional 4,051 shares in the last quarter. Arjuna Capital purchased a new position in Charles Schwab during the 1st quarter valued at about $1,476,000. Elgethun Capital Management increased its stake in Charles Schwab by 7.6% during the 1st quarter. Elgethun Capital Management now owns 159,001 shares of the financial services provider's stock worth $12,447,000 after buying an additional 11,227 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Charles Schwab by 15.1% in the first quarter. Charles Schwab Investment Management Inc. now owns 9,357,890 shares of the financial services provider's stock valued at $732,536,000 after acquiring an additional 1,224,400 shares in the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab Stock Up 0.4%

Charles Schwab stock opened at $96.79 on Thursday. The Charles Schwab Corporation has a fifty-two week low of $61.16 and a fifty-two week high of $99.59. The firm has a market capitalization of $175.87 billion, a price-to-earnings ratio of 26.02, a price-to-earnings-growth ratio of 0.92 and a beta of 0.96. The stock's fifty day moving average is $91.81 and its two-hundred day moving average is $84.11. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.53 and a current ratio of 0.53.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 EPS 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 19.73%. The firm had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. During the same period in the prior year, the company earned $0.73 EPS. The firm's revenue was up 24.8% on a year-over-year basis. Analysts predict that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

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

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 8th will be paid a dividend of $0.27 per share. The ex-dividend date of this dividend is 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 (DPR) is presently 29.03%.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Jonathan S. Beatty sold 2,850 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $87.57, for a total transaction of $249,574.50. Following the sale, the insider directly owned 15,219 shares of the company's stock, valued at $1,332,727.83. This trade represents a 15.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total transaction of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares of the company's stock, valued at approximately $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 308,016 shares of company stock valued at $29,341,433. 6.30% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on SCHW. The Goldman Sachs Group raised Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 target price for the company in a research note on Friday, April 25th. Wells Fargo & Company set a $102.00 target price on shares of Charles Schwab and gave the stock an "overweight" rating in a research note on Friday, July 18th. Barclays lifted their price target on shares of Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. TD Securities raised their price objective on shares of Charles Schwab from $95.00 to $113.00 and gave the company a "buy" rating in a report on Tuesday, May 20th. Finally, Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and raised their target price for the stock from $65.00 to $82.00 in a research report on Monday, June 9th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and sixteen have assigned a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $99.35.

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.

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