Monashee Investment Management LLC Takes $5.87 Million Position in The Charles Schwab Corporation $SCHW

Key Points

• Monashee Investment Management LLC has acquired a new position in The Charles Schwab Corporation, purchasing 75,000 shares valued at approximately $5.87 million, making it the firm’s 22nd largest holding.
• Charles Schwab reported a strong quarterly earnings result of $1.14 EPS, surpassing estimates, with revenues increasing by 24.8% year-over-year.
• The company has authorized a stock buyback plan worth $20 billion, indicating that its leadership believes the stock is undervalued.

Monashee Investment Management LLC purchased a new stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 75,000 shares of the financial services provider's stock, valued at approximately $5,871,000. Charles Schwab accounts for about 0.7% of Monashee Investment Management LLC's investment portfolio, making the stock its 22nd largest holding.

Several other hedge funds and other institutional investors also recently modified their holdings of SCHW. Atwood & Palmer Inc. bought a new stake in shares of Charles Schwab in the first quarter valued at approximately $25,000. Westside Investment Management Inc. grew its stake in Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after buying an additional 150 shares in the last quarter. Stone House Investment Management LLC purchased a new position in Charles Schwab in the 1st quarter worth approximately $31,000. WFA Asset Management Corp purchased a new position in Charles Schwab in the 1st quarter worth approximately $33,000. Finally, Cornerstone Planning Group LLC grew its stake in Charles Schwab by 90.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 463 shares of the financial services provider's stock worth $36,000 after buying an additional 220 shares in the last quarter. Institutional investors own 84.38% of the company's stock.

Analysts Set New Price Targets

A number of research firms have commented on SCHW. JMP Securities boosted their price target on shares of Charles Schwab from $106.00 to $110.00 and gave the stock a "market outperform" rating in a research note on Monday, July 21st. William Blair cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 3rd. The Goldman Sachs Group raised shares of Charles Schwab from a "neutral" rating to a "buy" rating and set a $100.00 price target for the company in a research note on Friday, April 25th. Piper Sandler boosted their price target on shares of Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Finally, Bank of America boosted their price target on shares of Charles Schwab from $83.00 to $84.00 and gave the stock an "underperform" rating in a research note on Monday, July 21st. Sixteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $99.60.

Charles Schwab Price Performance

Shares of Charles Schwab stock opened at $95.4380 on Thursday. The Charles Schwab Corporation has a 52-week low of $61.16 and a 52-week high of $99.59. The stock has a market capitalization of $173.24 billion, a price-to-earnings ratio of 25.66, a price-to-earnings-growth ratio of 0.94 and a beta of 0.96. The company has a fifty day moving average of $93.54 and a 200-day moving average of $85.16. 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 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.04. The business 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%. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.73 EPS. Equities research analysts expect that The Charles Schwab Corporation will post 4.22 EPS for the current year.

Charles Schwab Announces Dividend

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

Charles Schwab announced that its Board of Directors has authorized a stock buyback plan on Thursday, July 24th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the financial services provider to buy up to 11.6% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, Chairman Walter W. Bettinger sold 173,876 shares of the stock in a transaction 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 sale, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. This represents a 22.74% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jonathan S. Beatty sold 2,850 shares of the stock in a transaction on 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. The trade was a 15.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 250,340 shares of company stock worth $24,250,303 over the last ninety days. 6.30% of the stock is owned by company insiders.

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.

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