National Pension Service Grows Stake in The Charles Schwab Corporation $SCHW

Key Points

• National Pension Service increased its Charles Schwab stake by 4.1% in the fourth quarter, owning 4.06 million shares valued at about $405.6 million.
• Recent filings show broad institutional ownership remains very high, with hedge funds and other institutions holding 84.38% of SCHW. Several firms, including Primecap and First Trust, also added to their positions.
• Charles Schwab reported strong quarterly results, with EPS of $1.43 beating estimates and revenue rising 15.8% year over year to $6.48 billion. The company also paid a quarterly dividend of $0.32 per share and maintained a moderate-buy analyst consensus with an average price target of $114.30.

National Pension Service grew its stake in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 4.1% during the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 4,059,646 shares of the financial services provider's stock after acquiring an additional 159,453 shares during the period. National Pension Service owned about 0.23% of Charles Schwab worth $405,599,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in SCHW. Primecap Management Co. CA raised its stake in shares of Charles Schwab by 11.4% in the 3rd quarter. Primecap Management Co. CA now owns 21,209,187 shares of the financial services provider's stock valued at $2,024,841,000 after acquiring an additional 2,174,381 shares during the period. Mondrian Investment Partners LTD purchased a new stake in shares of Charles Schwab in the 3rd quarter valued at approximately $169,104,000. First Trust Advisors LP raised its stake in shares of Charles Schwab by 292.7% in the 3rd quarter. First Trust Advisors LP now owns 2,206,320 shares of the financial services provider's stock valued at $210,637,000 after acquiring an additional 1,644,503 shares during the period. Danske Bank A S purchased a new stake in shares of Charles Schwab in the 3rd quarter valued at approximately $142,594,000. Finally, Amundi raised its stake in shares of Charles Schwab by 21.6% in the 3rd quarter. Amundi now owns 6,982,838 shares of the financial services provider's stock valued at $656,387,000 after acquiring an additional 1,238,813 shares during the period. 84.38% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Charles Schwab

In related news, Director Frank C. Herringer sold 2,520 shares of the company's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $90.60, for a total transaction of $228,312.00. Following the sale, the director directly owned 177,508 shares of the company's stock, valued at $16,082,224.80. This represents a 1.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nigel J. Murtagh sold 41,297 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the sale, the insider directly owned 57,972 shares in the company, valued at approximately $5,739,228. The trade was a 41.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 99,021 shares of company stock valued at $9,617,291 in the last 90 days. Corporate insiders own 6.30% of the company's stock.

Key Charles Schwab News

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

• Negative Sentiment: Schwab’s recent $1.0 billion and $1.25 billion senior notes offerings, combined with co-chairman Charles R. Schwab’s share sale and a steady stream of insider selling, may be pressuring the stock as investors reassess balance-sheet and sentiment risks. Article Title
• Positive Sentiment: Schwab continues to expand its wealth management reach, with advisor-service head Jon Beatty saying the firm’s growing Schwab Wealth Advisory footprint is not likely to conflict with RIAs, which supports the long-term growth narrative. Article Title
• Positive Sentiment: Schwab Foundation launched new Moneywise Momentum Grants as part of a $20 million financial-education commitment, reinforcing the company’s brand and customer-engagement efforts. Article Title
• Neutral Sentiment: Liz Ann Sonders warned against treating the market like a “casino,” a commentary that reflects Schwab’s market perspective but does not appear to be a direct business catalyst. Article Title
• Neutral Sentiment: Multiple Charles Schwab Challenge golf stories are creating brand visibility, but they are unlikely to materially move SCHW shares. Article Title

Charles Schwab Price Performance

Shares of SCHW opened at $85.35 on Friday. The Charles Schwab Corporation has a fifty-two week low of $83.96 and a fifty-two week high of $107.50. The firm's 50 day moving average price is $92.27 and its 200 day moving average price is $95.67. The company has a market cap of $148.44 billion, a P/E ratio of 16.94, a PEG ratio of 0.58 and a beta of 0.80. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.48.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.04. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The firm had revenue of $6.48 billion for the quarter, compared to the consensus estimate of $6.39 billion. During the same period in the prior year, the firm earned $1.04 EPS. The firm's revenue for the quarter was up 15.8% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. On average, research analysts forecast that The Charles Schwab Corporation will post 6.12 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Friday, May 8th. Charles Schwab's dividend payout ratio is presently 25.40%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on SCHW. Raymond James Financial boosted their price target on shares of Charles Schwab from $126.00 to $137.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Jefferies Financial Group reduced their price target on shares of Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Argus set a $108.00 price target on shares of Charles Schwab in a research note on Monday, April 20th. Barclays boosted their price target on shares of Charles Schwab from $117.00 to $127.00 and gave the company an "overweight" rating in a research note on Friday, May 15th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $128.00 price target on shares of Charles Schwab in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $114.30.

About Charles Schwab

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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