NFJ Investment Group LLC Buys 398,974 Shares of The Charles Schwab Corporation $SCHW

Key Points

• NFJ Investment Group LLC sharply increased its stake in Charles Schwab, buying 398,974 additional shares in Q4 and lifting its position to 874,355 shares valued at about $87.4 million. Schwab is now NFJ’s largest holding.
• Wall Street remains broadly constructive on SCHW, with analysts maintaining mostly Buy ratings and a consensus price target of $116, even as some firms trimmed their individual targets slightly.
• Charles Schwab reported better-than-expected quarterly results, including EPS of $1.43 versus $1.39 expected and revenue growth of 15.8% year over year, while also paying a quarterly dividend of $0.32 per share.

NFJ Investment Group LLC boosted its holdings in The Charles Schwab Corporation (NYSE:SCHW - Free Report) by 83.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 874,355 shares of the financial services provider's stock after purchasing an additional 398,974 shares during the quarter. Charles Schwab comprises 3.2% of NFJ Investment Group LLC's holdings, making the stock its largest holding. NFJ Investment Group LLC's holdings in Charles Schwab were worth $87,357,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Brookwood Investment Group LLC increased its holdings in Charles Schwab by 192.6% in the fourth quarter. Brookwood Investment Group LLC now owns 12,236 shares of the financial services provider's stock worth $1,222,000 after purchasing an additional 8,054 shares in the last quarter. King Luther Capital Management Corp increased its holdings in shares of Charles Schwab by 34.4% during the third quarter. King Luther Capital Management Corp now owns 296,409 shares of the financial services provider's stock valued at $28,298,000 after acquiring an additional 75,820 shares in the last quarter. Juno Financial Group LLC bought a new stake in shares of Charles Schwab during the fourth quarter valued at approximately $2,591,000. Swiss Life Asset Management Ltd increased its holdings in shares of Charles Schwab by 4.2% during the fourth quarter. Swiss Life Asset Management Ltd now owns 407,179 shares of the financial services provider's stock valued at $40,681,000 after acquiring an additional 16,482 shares in the last quarter. Finally, Nordea Investment Management AB increased its holdings in shares of Charles Schwab by 13.0% during the fourth quarter. Nordea Investment Management AB now owns 3,437,222 shares of the financial services provider's stock valued at $344,410,000 after acquiring an additional 396,358 shares in the last quarter. 84.38% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on SCHW shares. Jefferies Financial Group decreased their price objective on Charles Schwab from $122.00 to $118.00 and set a "buy" rating for the company in a report on Monday, April 6th. TD Cowen boosted their price objective on Charles Schwab from $108.00 to $109.00 and gave the company a "buy" rating in a report on Friday, May 15th. Morgan Stanley decreased their price objective on Charles Schwab from $135.00 to $125.00 and set an "overweight" rating for the company in a report on Friday, April 17th. Truist Financial decreased their price objective on Charles Schwab from $122.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, April 1st. Finally, UBS Group decreased their price objective on Charles Schwab from $125.00 to $119.00 and set a "buy" rating for the company in a report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $116.00.

Charles Schwab Trading Up 2.6%

Shares of Charles Schwab stock opened at $91.04 on Friday. The stock has a fifty day simple moving average of $91.05 and a 200 day simple moving average of $95.25. 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 $158.32 billion, a P/E ratio of 18.06, a price-to-earnings-growth ratio of 0.86 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 announced its quarterly earnings results on Thursday, April 16th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.04. Charles Schwab had a return on equity of 23.05% and a net margin of 37.99%.The business had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. During the same quarter in the prior year, the company posted $1.04 earnings per share. Charles Schwab's revenue was up 15.8% compared to the same quarter last year. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. On average, sell-side analysts anticipate that The Charles Schwab Corporation will post 6.13 earnings per share for the current fiscal year.

Charles Schwab Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were issued a dividend of $0.32 per share. The ex-dividend date was Friday, May 8th. This represents a $1.28 annualized dividend and a yield of 1.4%. Charles Schwab's dividend payout ratio is 25.40%.

Charles Schwab News Summary

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

• Positive Sentiment: Schwab reported monthly activity highlights for May, and the company said the month set records, reinforcing confidence in client growth and trading momentum. Schwab Reports Monthly Activity Highlights
• Positive Sentiment: Market commentary says the stock is also getting a lift from a broader rebound in financials and renewed investor focus on Schwab’s strong client and trading trends. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum
• Positive Sentiment: Recent analyst actions have been constructive, with firms raising earnings estimates and maintaining buy-style ratings, which supports the bullish setup for SCHW. Charles Schwab stock research page
• Neutral Sentiment: Schwab also announced the closure and liquidation of its Schwab Ariel Opportunities ETF, a fund-level action that appears unlikely to materially affect the parent company’s near-term stock performance. Schwab Asset Management Announces Closure and Liquidation of the Schwab Ariel Opportunities ETF (SAEF)
• Negative Sentiment: There is still some caution in the background from mixed institutional positioning and heavy insider selling over the past six months, which could limit upside if sentiment weakens. Charles Schwab jumps as financials rebound and investors refocus on Schwab’s strong client/trading momentum

Insider Buying and Selling

In related news, insider Nigel J. Murtagh sold 41,297 shares of the company's stock in a transaction 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 completion of the sale, the insider owned 57,972 shares in the company, valued at approximately $5,739,228. This represents a 41.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank C. Herringer sold 2,520 shares of the company's 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 sale, the director owned 177,508 shares of the company's stock, valued at $16,082,224.80. This trade represents a 1.40% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 59,700 shares of company stock worth $5,889,131. 6.30% of the stock is owned by corporate insiders.

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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