NewEdge Wealth LLC Sells 22,039 Shares of The Charles Schwab Corporation $SCHW

Key Points

• NewEdge Wealth LLC reduced its Charles Schwab stake by 21.3% in the first quarter, selling 22,039 shares and leaving it with 81,450 shares valued at about $7.66 million.
• Charles Schwab reported better-than-expected Q2 results, including EPS of $1.62 vs. $1.56 expected and revenue of $7.07 billion, up 20.9% year over year, while management also raised full-year guidance.
• Analyst sentiment remains supportive overall, with multiple firms reaffirming buy/outperform ratings and the consensus price target at $119.76, even as a few insiders recently sold shares and the stock traded near its 52-week high.

NewEdge Wealth LLC trimmed its stake in shares of The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 21.3% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 81,450 shares of the financial services provider's stock after selling 22,039 shares during the quarter. NewEdge Wealth LLC's holdings in Charles Schwab were worth $7,655,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. First Trust Advisors LP grew its stake in Charles Schwab by 29.0% during the first quarter. First Trust Advisors LP now owns 3,377,185 shares of the financial services provider's stock worth $317,388,000 after buying an additional 759,220 shares in the last quarter. Chase Investment Counsel Corp bought a new stake in shares of Charles Schwab during the 1st quarter worth approximately $4,475,000. CacheTech Inc. acquired a new stake in shares of Charles Schwab during the 1st quarter worth approximately $218,000. ABN Amro Investment Solutions increased its stake in Charles Schwab by 7.8% in the first quarter. ABN Amro Investment Solutions now owns 137,274 shares of the financial services provider's stock valued at $12,901,000 after acquiring an additional 9,882 shares during the last quarter. Finally, Triad Investment Management acquired a new position in Charles Schwab during the first quarter valued at approximately $293,000. 84.38% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Charles Schwab

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

• Positive Sentiment: Schwab beat Q2 estimates, with record daily average revenue trades, a 20%+ revenue increase, and management raising full-year guidance, signaling strong operating momentum. Schwab Beats 2Q Estimates as Retail Traders Pile Into Market
• Positive Sentiment: Analysts turned more bullish, with Argus lifting its price target to $114 and Barclays raising its target to $125, both with positive ratings. Analyst price target increases
• Positive Sentiment: Schwab was added to Zacks’ Rank #1 “Strong Buy” income stocks list, which can support investor sentiment around the name. Best Income Stocks to Buy for July 23rd
• Neutral Sentiment: Schwab declared its regular quarterly common stock dividend and preferred dividends, reinforcing its shareholder-return profile but not changing the core growth story. Schwab Declares Quarterly Common Stock Dividend and Declares Preferred Stock Dividends
• Negative Sentiment: Some coverage noted that SCHW shares fell despite the earnings surge, suggesting traders may be taking profits after the run-up or focusing on valuation near recent highs. Interactive Brokers, Charles Schwab Slide Despite Earnings Surge

Insider Activity at Charles Schwab

In related news, Director Frank C. Herringer sold 2,520 shares of the stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total value of $228,312.00. Following the completion of the sale, the director directly owned 177,508 shares in the company, valued at $16,082,224.80. This represents a 1.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jonathan S. Beatty sold 2,000 shares of Charles Schwab stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $100.01, for a total value of $200,020.00. Following the transaction, the insider directly owned 13,738 shares in the company, valued at $1,373,937.38. The trade was a 12.71% 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. Over the last 90 days, insiders sold 6,520 shares of company stock valued at $622,392. Corporate insiders own 6.30% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on SCHW shares. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Charles Schwab in a report on Wednesday. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Charles Schwab in a research note on Thursday, June 18th. Wolfe Research reissued an "outperform" rating and set a $127.00 target price on shares of Charles Schwab in a research note on Tuesday. Truist Financial reduced their price target on shares of Charles Schwab from $122.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. Finally, BMO Capital Markets lowered shares of Charles Schwab from an "outperform" rating to a "market perform" rating and set a $105.00 price target on the stock. in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Charles Schwab presently has a consensus rating of "Moderate Buy" and a consensus price target of $119.76.

Charles Schwab Price Performance

Charles Schwab stock opened at $101.62 on Friday. The stock has a 50-day moving average price of $93.71 and a two-hundred day moving average price of $95.35. The Charles Schwab Corporation has a 12 month low of $83.96 and a 12 month high of $107.50. The company has a market capitalization of $176.73 billion, a PE ratio of 18.48, a P/E/G ratio of 0.83 and a beta of 0.77. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48.

Charles Schwab (NYSE:SCHW - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.06. Charles Schwab had a return on equity of 24.73% and a net margin of 38.79%.The company had revenue of $7.07 billion for the quarter, compared to analysts' expectations of $6.90 billion. During the same period in the previous year, the business posted $1.14 earnings per share. The business's quarterly revenue was up 20.9% compared to the same quarter last year. Analysts expect that The Charles Schwab Corporation will post 6.34 EPS for the current year.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Friday, August 14th. Charles Schwab's payout ratio is presently 25.40%.

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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