Mizuho Securities USA LLC Has $10.68 Million Position in The Charles Schwab Corporation (NYSE:SCHW)

Key Points

• Mizuho Securities USA LLC has reduced its stake in The Charles Schwab Corporation by 3.7%, owning 136,448 shares valued at approximately $10.68 million after selling 5,236 shares in the first quarter.
• The company reported a 24.8% year-over-year revenue increase for the last quarter, reaching $5.85 billion and exceeding analysts' expectations.
• Charles Schwab's Board has approved a $20 billion stock buyback program, indicating management's belief that the stock is undervalued.

Mizuho Securities USA LLC trimmed its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 3.7% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 136,448 shares of the financial services provider's stock after selling 5,236 shares during the quarter. Mizuho Securities USA LLC's holdings in Charles Schwab were worth $10,681,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Sheaff Brock Investment Advisors LLC grew its holdings in Charles Schwab by 1.6% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 7,986 shares of the financial services provider's stock worth $625,000 after acquiring an additional 129 shares during the period. HM Payson & Co. grew its holdings in Charles Schwab by 0.7% during the first quarter. HM Payson & Co. now owns 19,271 shares of the financial services provider's stock worth $1,509,000 after acquiring an additional 130 shares during the period. Cornerstone Wealth Management LLC increased its stake in Charles Schwab by 2.1% in the 1st quarter. Cornerstone Wealth Management LLC now owns 6,551 shares of the financial services provider's stock worth $513,000 after purchasing an additional 132 shares in the last quarter. Journey Strategic Wealth LLC increased its stake in Charles Schwab by 3.1% in the 1st quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock worth $351,000 after purchasing an additional 135 shares in the last quarter. Finally, Premier Path Wealth Partners LLC increased its stake in Charles Schwab by 1.8% in the 1st quarter. Premier Path Wealth Partners LLC now owns 7,817 shares of the financial services provider's stock worth $612,000 after purchasing an additional 140 shares in the last quarter. 84.38% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the company's stock in a transaction 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 directly owned 590,734 shares in the company, valued at $58,388,148.56. This represents a 22.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Paula A. Sneed sold 8,647 shares of the company's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $88.06, for a total value of $761,454.82. Following the completion of the sale, the director owned 105,654 shares in the company, valued at $9,303,891.24. This trade represents a 7.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 308,016 shares of company stock valued at $29,341,433 in the last quarter. 6.30% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the company. Bank of America lifted their price target on Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research note on Monday, July 21st. Keefe, Bruyette & Woods lifted their price target on Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Raymond James Financial restated an "outperform" rating and set a $99.00 price objective on shares of Charles Schwab in a research report on Friday, July 18th. Truist Financial lifted their price target on Charles Schwab from $100.00 to $107.00 and gave the company a "buy" rating in a report on Monday, July 21st. Finally, Morgan Stanley lifted their price target on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a report on Tuesday, July 29th. 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. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $99.35.

Charles Schwab Stock Performance

NYSE SCHW traded up $1.06 during trading on Friday, hitting $97.05. The company's stock had a trading volume of 5,031,212 shares, compared to its average volume of 9,100,679. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.53. The firm has a 50 day moving average price of $92.15 and a 200 day moving average price of $84.40. The firm has a market cap of $176.34 billion, a P/E ratio of 26.09, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96. 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 released its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. The business had revenue of $5.85 billion for the quarter, compared to analysts' expectations of $5.64 billion. Charles Schwab had a return on equity of 19.73% and a net margin of 33.68%. Charles Schwab's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.73 earnings per share. Equities research analysts forecast that The Charles Schwab Corporation will post 4.22 earnings per share for the current fiscal year.

Charles Schwab announced that its Board of Directors has authorized a share repurchase 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 repurchase up to 11.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Charles Schwab Dividend Announcement

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

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.